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FY23 State Aid

State aid is the City’s second-largest single source of general fund revenue, although it has declined as a share of recurring revenue over the past two decades.

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.

    State Aid and Assessments

    State Aid Revenue

    State aid refers primarily to distributions from the state to municipalities for Chapter 70 education aid, unrestricted general government aid (UGGA), and charter school tuition reimbursement. The FY23 State Aid budget totals $495.2 million, a $16.3 million or 3.4% increase over FY22. This increase is driven by a more fully funded charter tuition reimbursement as part of the Student Opportunity Act and a 2.7% increase to UGGA. Breakdown:

    • Chapter 70 Education Aid - $225.5 million
    • Unrestricted General Government Aid (UGGA) - $213.8 million
    • Charter School Tuition Reimbursement - $53.0 million 
    • Other categories, including State Owned Land and Veterans Benefits - $2.9 million
    State Assessments

    Assessments are budgeted to increase by $15.8 million, or 4.5%, totaling $367.0 million. They include:

    • Charter School Tuition - $267.9 million
    • MBTA - $93.6 million
    • Other categories, including RMV Non-Renewal Surcharge and School Choice Sending Tuition - $5.6 million

    Net State Aid

    State Aid Over Time

    Net State Aid by fiscal year since FY09 has generally been decreasing year-over-year. Hovering over the different points will display each year’s revenue, assessments and net state aid.

    FY22 and FY23 are budgeted amounts

    Net State Aid equals state revenue minus state assessments. Net State Aid in the FY22 budget totals $127.7 million, while the FY23 budget assumes a $525 thousand increase to $128.2 million.

    Between FY09 and FY23, Net State Aid has decreased by $188.5 million, or a 59.5% drop. This loss of resources has put significant pressure on the property tax and other local revenue sources, as well as on levels of expenditures. 

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