Lawmakers press DESE and municipal leaders for fast fixes to Chapter 70 and local aid as FY27 budget debate begins
March 23, 2026 | 2026 Legislature MA, Massachusetts
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Lawmakers used a lengthy Ways and Means hearing in Lawrence to press DESE and municipal representatives for both near-term fixes and longer-term reform of the state's school funding and local-aid systems.
Members repeatedly said the structural Chapter 70 formula and the local contribution rules are producing widening disparities between and within districts — a problem that will become urgent as the Student Opportunity Act (SOA) reaches its final year of phase-in. "We need to crack open that funding formula immediately," said Senator Olivera, who represents a cluster of gateway and western Massachusetts districts.
DESE's chief financial officer, Bill Bell, and commissioner Pedro Martinez told the committee they are finalizing hearings and data analysis and expect at least a draft of the local contribution study by the end of the fiscal year (June). Martinez emphasized that the data work requires coordination with the Division of Local Services and Department of Revenue and that public comment will be part of the review process.
Municipal leaders from the Massachusetts Municipal Association and mayors who testified asked the committee to restore unrestricted general government aid (UGA) and increase per-capita minimum aid, while cautioning that any change to the levy limit (Proposition 2) is not a universal solution. The MMA proposed a $351 million multi-year restoration of UGA and recommended a phased approach to avoid sudden shocks to municipal budgets.
Several members recommended convening a Foundation Budget Review Commission to redesign the Chapter 70 calculations, a step some said has been overdue.
Next steps: DESE said it will share the draft local-contribution report with Ways and Means staff and make it available for public comment; lawmakers said they would consider short-term mitigation (for example, targeted grants and retirement-plus incentives) while pursuing a statutory review of the formula.
Members repeatedly said the structural Chapter 70 formula and the local contribution rules are producing widening disparities between and within districts — a problem that will become urgent as the Student Opportunity Act (SOA) reaches its final year of phase-in. "We need to crack open that funding formula immediately," said Senator Olivera, who represents a cluster of gateway and western Massachusetts districts.
DESE's chief financial officer, Bill Bell, and commissioner Pedro Martinez told the committee they are finalizing hearings and data analysis and expect at least a draft of the local contribution study by the end of the fiscal year (June). Martinez emphasized that the data work requires coordination with the Division of Local Services and Department of Revenue and that public comment will be part of the review process.
Municipal leaders from the Massachusetts Municipal Association and mayors who testified asked the committee to restore unrestricted general government aid (UGA) and increase per-capita minimum aid, while cautioning that any change to the levy limit (Proposition 2) is not a universal solution. The MMA proposed a $351 million multi-year restoration of UGA and recommended a phased approach to avoid sudden shocks to municipal budgets.
Several members recommended convening a Foundation Budget Review Commission to redesign the Chapter 70 calculations, a step some said has been overdue.
Next steps: DESE said it will share the draft local-contribution report with Ways and Means staff and make it available for public comment; lawmakers said they would consider short-term mitigation (for example, targeted grants and retirement-plus incentives) while pursuing a statutory review of the formula.
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