FY24 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.
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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 FY24 State Aid budget totals $513.8 million, a $5.1 million or 1.0% increase over FY23. This increase is driven mostly by increases in Chapter 70 Education Aid (0.8%) and Unrestricted General Government Aid (2.0%). State aid sources include:
- Chapter 70 Education Aid - $229.0 million
- Unrestricted General Government Aid (UGGA) - $223.9 million
- Charter School Tuition Reimbursement - $56.8 million
- Other categories, including State Owned Land and Veterans Benefits - $4.2 million
Assessments are budgeted to increase by $18.1 million, or 5.0%, totaling $382.4 million. They include:
- Charter School Tuition - $280.4 million
- MBTA - $95.3 million
- Other categories, including RMV Non-Renewal Surcharge and School Choice Sending Tuition - $6.7 million
Net State Aid
State Aid Over Time
Net State Aid by fiscal year since FY08 has generally been decreasing year-over-year. Hovering over the different points will display each year’s revenue, assessments and net state aid.
FY23 and FY24 are budgeted amounts.
Net State Aid equals state revenue minus state assessments. Net State Aid in the FY23 budget totals $144.3 million. In FY24 this amount is budgeted to decrease by $12.9 million decrease to $131.4 million.
Between FY08 and FY23, Net State Aid has decreased by $233.7 million, or a 64.0% drop. This loss of resources has put significant pressure on the property tax and other local revenue sources, as well as expenditure levels.