FY27 State Aid
State aid is the City’s second-largest single source of general fund revenue. State aid revenues are determined by the State. Their portion of the budget has decreased over the past two decades.
State aid is revenue paid by the Commonwealth to support City departments. The State also charges the City assessments for charter schools, the MBTA, and other programs. Total state aid revenues minus State assessments is referred to as net state aid.
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Budget
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1 City Hall Square
Room 813Boston, MA 02201-2037
State Aid and Assessments
State Aid Revenue
State aid refers to payments from the state to municipalities for Chapter 70 education aid, unrestricted general government aid (UGGA), charter school tuition reimbursement, and other small programs. The FY27 state aid budget totals $538.1 million, $14.0 million more, or 2.7%, than FY26. This growth is due to increases in Chapter 70, Charter School Tuition Reimbursement, and UGGA. State aid sources include:
- Chapter 70 Education Aid - $249.5 million
- Unrestricted General Government Aid (UGGA) - $241.7 million
- Charter School Tuition Reimbursement - $43.4 million
- Other categories, including State Owned Land and Veterans Benefits - $3.4 million
State Assessments
Assessments are budgeted to increase by $13.0 million, or 3.2%, totaling $418.5 million. They include:
- Charter School Tuition - $306.2 million
- MBTA - $103.1 million
- Other categories, including RMV Non-Renewal Surcharge and School Choice Sending Tuition - $9.2 million
Net State Aid
State Aid Over Time
Net state aid measures the level of fiscal support received by the State. In FY27 this amount is budgeted at $119.6 million, $1 million more than FY26. Revenues increased by $14.0 million and assessments increased by $13.0 million.
Between FY09 and FY27, net state aid has decreased by $197.1 million, a 62.2% drop. This loss of resources has put significant pressure on the City to generate revenue from other sources to support essential government services.
Net state aid by fiscal year has generally been decreasing year-over-year, though the City is budgeting for a small reprieve in FY27. Hovering over the different points will display each year’s revenue, assessments and net state aid.
FY26 and FY27 are budgeted amounts.
Net Education Aid
Net education aid is the part of state aid that is for education items only. Net education aid is the sum of Chapter 70 education aid and the charter school tuition reimbursement less the charter school tuition assessment. Net education aid in the FY27 budget totals -$13.3 million, a decrease of $1.8 million from FY26. This means that the City pays more in assessments than it receives in aid.
Between FY09 and FY27, net education aid decreased by $165.6 million, or a 108.8% drop. Over this time the charter school tuition assessment has grown by 500%, greatly outpacing state aid revenues. The negative net aid balance estimated for FY27 puts added stress on this year's budget.
Net education aid has generally been decreasing each year. Hovering over the different points will display each year’s revenue, assessments and net education aid.
FY26 and FY27 are budgeted amounts.
Learn more about the Budget
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Still have questions? Contact:
Budget
-
1 City Hall Square
Room 813Boston, MA 02201-2037
