Bill > S440

This bill establishes a School Budget Stabilization Fund to help Massachusetts school districts address financial challenges caused by extraordinary inflation that exceeds the standard 4.5% cap on education funding adjustments. The fund will be created within the state's financial system and can receive appropriations, designated revenues, and earn interest, with money remaining in the fund not reverting to the General Fund. The Department of Elementary and Secondary Education (DESE) will manage the fund and can disburse money without further appropriation to provide financial relief to school districts experiencing funding limitations due to high inflation. The bill modifies the definition of "Foundation Inflation Index" to track state and local government purchase price changes, and requires DESE to submit a multi-year plan (up to five years) to restore full funding to districts if inflation exceeds 1.045 (4.5%). Additionally, the commissioner must file an annual report by September 1st detailing grants made in the previous fiscal year, and the department must establish guidelines for equitable fund distribution. This legislation aims to provide more flexible financial support to school districts when inflation significantly impacts their budgets beyond typical funding mechanisms.

Education

https://malegislature.gov/Bills/194/S440