FY20 State Aid

State Aid is the City’s third largest source of general fund revenue, although it has been declining as a share of recurring revenue.

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State Aid is comprised of revenue paid to the City net of state assessments, or charges, the City is required to pay to the state.

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State Aid and Assessments

State Aid Revenue

State Aid Revenue is budgeted to increase by $14 million, or 3%, reaching $459 million in total. It includes:

Chapter 70 Education Aid is growing by 1%, or $1.3 million, in the Governor’s proposed budget
Unrestricted General Government Aid (UGGA) is expected to increase by 3%, or $5.3 million
Charter School Tuition Reimbursement is budgeted to increase by $9.7 million, or 47%. This projection is $5.6 million lower than the State’s obligation under the 2010 Achievement Gap Legislation for FY20, and $101.5 million in overall lost revenue between FY15 and FY20.
Other categories, including State Owned Land and Veterans Benefits, are decreasing by $2 million in FY20

State Assessments

Assessments are budgeted to increase by $26.3 million, or 9.4%, and include:

Charter School Tuition, budgeted to increase by $23.8 million, or 12.7%
MBTA, budgeted to increase by $2.5 million, or 2.8%
Other categories, including RMV Non-Renewal Surcharge and School Choice Sending Tuition, are decreasing by $33 thousand in FY20

Net State Aid

State Aid Over Time

The graph to the left shows Net State Aid by fiscal year since FY08, decreasing year-over-year. Hovering over the different points will present each year’s revenue, assessments and net state aid.

Net State Aid equals state revenue minus state assessments. The FY19 Net State Aid is currently projected to total $163.6 million, while the FY20 budget assumes an $12 million reduction to $152.1 million.

Since FY02, Net State Aid has decreased by $276M, putting pressure on the City’s other sources of revenue. These sources are increasingly required to cover for the diminishing revenue source.