Significant Budget Changes for FY2026 (Funding Sources) –
• Chapter 70 Aid is the District’s primary source of funds, other than member assessments. For years, A-B has received amounts in excess of Foundation Aid, per the DESE formula calculation, through an exception to the Chapter 70 formula known as “Hold Harmless” (i.e., no district receives less in aid than the previous year). In fact, most districts, including A-B, typically receive a Minimum Aid increase of $30 per student, as codified in the 2020 Student Opportunity Act. As of this writing, the new Governor’s initial budget has not been filed. While the possibility exists that the initial proposal may exceed the statutory requirement, our Recommended Budget reflects a return to $30 per student in Minimum Aid, an increase of $150K over the FY25 level. • Ch. 71 Regional Transportation Aid is a reimbursement program, and Cherry Sheet aid reflected in the Governor’s budget proposals are estimates based on the prior year’s eligible costs of providing student transportation. Final reimbursements, after submission of the applicable year’s financial reports to DESE, are determined at the end of each fiscal year of payment. Therefore, the District’s final FY26 Regional Transportation Aid is not yet available for comparative purposes. The initial FY26 budget projects FY26 Regional Transportation Aid at a reimbursement rate of 80%, which we have used to project the District’s related FY26 budgeted revenue. historically low rates. The doubly good news for the District is not only significantly higher projected revenue in future years (conservatively projected in FY26 at a historical average of $300K), but also the lack of impact on the District’s 30-year bond payment (issued in March, 2020 and locked in at an effective rate of 2.1%). • Medicaid Reimbursement is a federal program that uses a formula to subsidize medical-related expenditures provided for low income students. The FY26 Recommended Budget presumes that Medicaid reimbursements will be reduced by $15K. • Investment Income has continued to remain higher than several stagnant years, reflecting
• Rental Income is received from CASE Collaborative at a fixed annual rate for the use of two otherwise unused classrooms at the Boardwalk campus.
• Excess and Deficiency (E&D) and Other Reserves: Regional districts are afforded the opportunity to retain up to 5% of their subsequent year’s budget in an E&D reserve, upon certification by the state Department of Revenue. The FY26 Preliminary Budget uses no use of E&D to reduce member assessments. As noted in the Superintendent’s Preliminary Budget presentation, our reserves are depleting and we need to build them back up.
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