Bill > H678

This bill modifies the definitions of "Foundation allotments" and "Foundation inflation index" in Chapter 70 of Massachusetts General Laws to adjust how education aid is calculated with inflation. Specifically, the bill updates how per-pupil rates for different educational categories are adjusted annually, ensuring that most per-pupil rates are not less than the previous year's foundation per-pupil rate increased by the foundation inflation index. The foundation inflation index is defined as the ratio of the implicit price deflator for state and local government consumption expenditures and gross investment, comparing the first quarter of the prior fiscal year to the first quarter of fiscal year 2019. Importantly, the bill caps the increase in this index at 4.5% per year, which helps prevent dramatic fluctuations in education funding. This technical amendment aims to provide a more stable and predictable mechanism for adjusting education aid to account for economic changes while maintaining a reasonable limit on annual increases.

Education

https://malegislature.gov/Bills/194/H678