Effect of Governor's Proposed Changes to State Aid

Yes, cuts will definitely be necessary to our school budgets next year in spite of the proposed level funding of Chapter 70 state aid.   This is due both to increased costs of running our school system and to reductions in revenue from sources other than Chapter 70. 

Increased Costs

At the start of the budget planning process, we ask ourselves: If we could reopen our schools next fall looking exactly the same as they do now, how much additional money would we need?

For the Regional School District, which includes the middle school and high school, we have determined that we would need almost $1.8 million of additional money to keep our services at the same level as this year.  (This is known as the level-services budget.)

Similarly, for the elementary schools in Amherst, increased costs mean that we would need close to $1.2 million of additional money in order to provide the same level of services.    For the elementary school in Pelham, it would take $137,000 of additional money to provide the same level of services. Costs that cannot be covered by increased revenues have to be cut.

Decreased Revenues

While state aid provides an important stream of revenue, most school funding is local and depends on a town's ability to pay.   The Governor has proposed cutting Lottery Aid and Additional Assistance funding to towns, which in turn influences the towns' ability to pay for schools.  The Town of Amherst stands to lose almost $2.8 million due to the proposed cuts in Lottery Aid and Additional Funding.  This would affect the elementary schools in Amherst, which are part of the Town of Amherst.  The Town of Pelham faces cuts to Lottery Aid of $57,000.  While this is at a smaller scale, the impact on Pelham is at least as severe as the impact on Amherst.

Chapter 70 state aid is only one source of revenue for the schools.  Even if Chapter 70 state aid is level funded, other revenue sources are projected to decrease approximately $230,000 for the Regional School District.  See the proposed budget for more detail on these revenue sources. 

The Regional School District is supported by four member towns: Amherst, Pelham, Leverett and Shutesbury.  Assessments from the member towns provide about 58% of the Region’s budget support.  How much of an assessment member towns can afford, as voted at town meetings, is the last component in determining a final budget for the regional schools (ARMS and ARHS).

There are still elements of uncertainty in the budget, but one thing is clear: With costs going up and revenues going down, it is inevitable that cuts will have to be made.