Chapter 70 Funding

Every tax is a pay cut. Every tax cut is a pay raise.
Citizens for Limited Taxation

Chapter 70 Funding for Schools

Chapter 70, as it is called, is the primary source of funds that the Commonwealth of Massachusetts distributes to its 351 cities and towns and special schools. The name comes from Massachusetts General Law (MGL) Chapter 70. . Also see the Cherry Sheets.
Who am I, a mere mortal, to have the audacity to question Framingham's Ministry of Finance and the Big Brains in the Finance Committee about their wildly optimistic and highly speculative assumptions made on Chapter 70 funding (state expense code 7061-0008) in Framingham's Long Term Financial Report in 2007 and 2008. It doesn't even qualify as a good Scientific Wild Ass Guess (SWAG).
Ambrose Bierce defined the future as
That period of time in which our affairs prosper, our friends are true and our happiness is assured.
According to state budgets , Chapter 70 funding (state expense code 7061-0008) has increased a total of 64.6% increase across the past 11 years, or a 4.65% increase year over year.
This almost falls in line with the state revenues increasing 4.35% year over year
These long term financial reports are reviewed by the Town Manager, the CFO, the Finance Committee and stamped for approval by the Chairman of the Board of Selectman, Dennis Giombetti.
The long term financial report is used as the gospel by the School Committee to negotiate their union contracts.
What's interesting is that the other numbers seem to be reasonable, but Chapter 70 funding is really out of whack and should be adjusted to reflect reality.
The best part is that the state revenues are expected to drop next year because of a slowing economy. This will cause another one of those totally unexpected shortfalls in state revenues just like 2002 .

Chapter 70 Funding for Schools
Chapter 70, as it is called, is the primary source of funds that the Commonwealth of Massachusetts distributes to its 351 cities and towns and special schools. The name comes from Massachusetts General Law (MGL) Chapter 70. . Also see the Cherry Sheets. Who am I, a mere mortal, to have the audacity to question Framingham's Ministry of Finance and the Big Brains in the Finance Committee about their wildly optimistic and highly speculative assumptions made on Chapter 70 funding (state expense code 7061-0008) in Framingham's Long Term Financial Report in 2007 and 2008. It doesn't even qualify as a good Scientific Wild Ass Guess (SWAG). Ambrose Bierce defined the future as That period of time in which our affairs prosper, our friends are true and our happiness is assured. According to state budgets , Chapter 70 funding (state expense code 7061-0008) has increased a total of 64.6% increase across the past 11 years, or a 4.65% increase year over year. This almost falls in line with the state revenues increasing 4.35% year over year These long term financial reports are reviewed by the Town Manager, the CFO, the Finance Committee and stamped for approval by the Chairman of the Board of Selectman, Dennis Giombetti. The long term financial report is used as the gospel by the School Committee to negotiate their union contracts. What's interesting is that the other numbers seem to be reasonable, but Chapter 70 funding is really out of whack and should be adjusted to reflect reality. The best part is that the state revenues are expected to drop next year because of a slowing economy. This will cause another one of those totally unexpected shortfalls in state revenues just like 2002 .

State/Framingham Level Funding of Chapter 70

Year State Wide
Chapter 70 % Diff Framingham
Chapter 70 % Diff

1998 2,262,342,702 4,875,667

1999 2,515,444,069 11.0 5,645,028 15.7

2000 2,760,762,474 9.7 6,826,278 20.9

2001 2,947,826,307 6.7 8,258,128 21.0

2002 3,213,150,094 9.0 9,814,588 18.8

2003 3,258,969,179 1.4 10,164,588 3.6

2004 3,108,140,588 (4.8) 8,131,670 (20.0)

2005 3,183,282,601 2.4 8,131,670 0.0

2006 3,288,931,062 3.2 8,530,320 4.9

2007 3,505,520,040 6.6 10,628,154 24.5

2008 3,725,671,328 6.6 13,996,312 31.6

State/Framingham Level Funding of Chapter 70
Year	State Wide Chapter 70	% Diff	Framingham Chapter 70	% Diff
1998	2,262,342,702		4,875,667
1999	2,515,444,069	11.0	5,645,028	15.7
2000	2,760,762,474	9.7	6,826,278	20.9
2001	2,947,826,307	6.7	8,258,128	21.0
2002	3,213,150,094	9.0	9,814,588	18.8
2003	3,258,969,179	1.4	10,164,588	3.6
2004	3,108,140,588	(4.8)	8,131,670	(20.0)
2005	3,183,282,601	2.4	8,131,670	0.0
2006	3,288,931,062	3.2	8,530,320	4.9
2007	3,505,520,040	6.6	10,628,154	24.5
2008	3,725,671,328	6.6	13,996,312	31.6

Now we get into the big deception from Framingham's Ministry of Finance

2007 Long Term Financial Report 2008 Long Term Financial Report

Year Chapter 70 Funding % Diff Chapter 70 Funding % Diff

2007 10,628,154 10,669,154

2008 11,903.532 11.2 13,996,312 31.2

2009 13,331,956 11.2 17,915,279 22.8

2010 14,931,791 11.2 22,394,099 25.0

2011 16,723,606 11.2 27,992,624 24.9

2012 18,730,439 11.2 34,151,001 22.0

2013 40,981,202 20.0

	2007 Long Term Financial Report	2008 Long Term Financial Report
Year	Chapter 70 Funding	% Diff	Chapter 70 Funding	% Diff
2007	10,628,154		10,669,154
2008	11,903.532	11.2	13,996,312	31.2
2009	13,331,956	11.2	17,915,279	22.8
2010	14,931,791	11.2	22,394,099	25.0
2011	16,723,606	11.2	27,992,624	24.9
2012	18,730,439	11.2	34,151,001	22.0
2013			40,981,202	20.0

Town Manager, $135,000 per year,
CFO, $100,000 per year,
Plugging in bogus data in Framingham's Long Term Financial Report,
PRICELESS
For everything else, there's Master Card

Send comments to: hjw2001@gmail.com