So why the "Two Cities"?

So why, you ask, does Boston get $23 million over foundation in Chapter 70 this year?

A change in the funding formula, in an attempt to even things out.

Three years ago, the state adopted a change in the calculation for the required local funding (it's called the "Aggregate Wealth Model" should you see that anywhere). Previously, the calculation was based on property wealth. Now, it's split between property wealth and income wealth.

The Cape, for example, has property wealth: land that is worth a lot. Boston, for example, has a lot of income wealth: money being made. Previously, the communities that had property wealth got less in Chapter 70 aid, as the supposition was that they had more money coming in from property taxes. The shift has meant that communities that have other sources of funds--like Boston--are now going to need to turn to those sources, as their state aid gets cut and their local funding requirement goes up.

Unfortunately (sorry, Boston!) that probably isn't going to happen. Boston has received so much in Ch. 70 aid for so long and has used local funding that it is far above where it will need to be in local contributions. The city's going to cut that down closer to the requirement. Boston can cut nearly $80 million from its local budget and still meet the local requirement.

Worcester isn't affected by the calculation change.

So consider this an asterisk on the below. The question of whether one ought to be doing recalculation now remains.

As does that niggling $14 million in Ch. 70 aid that Worcester's missing. We're still supposed to be getting that!

Another citation here of the amazing Brian Allen who spends as much time these days explaining to all of us what the numbers mean as he does actually doing anything with the numbers. Thanks, Brian! If you have questions, know that Brian will be at the CPPAC meeting at 7pm Tuesday at the Worcester Public Library, PowerPoint at the ready and taking questions!