GOV. MAURA HEALEY on Wednesday proposed directing an additional $100 million to public school districts across Massachusetts, saying the funding would help communities manage growing financial challenges ahead of the new school year.
The proposal, which must be approved by the Legislature, would add to the more than $7 billion already appropriated for K-12 education in the fiscal 2027 state budget.
Districts would be able to use the funding based on their local needs, though Healey said the goal is to help schools avoid cuts to educational programs and reduce layoffs of teachers and other staff.
The announcement comes as many districts continue to wrestle with shrinking enrollment, higher transportation expenses, and rising operating costs. Education groups, including the Massachusetts Teachers Association, have argued that state funding has not kept pace with inflation, leaving districts with difficult budget decisions.
“Cities and towns across Massachusetts are facing serious financial challenges, forcing school districts to make impossible choices,” Healey said during the announcement. “They’re considering layoffs, including teachers and paraprofessionals, cutting extracurricular activities and other mental health support services, all just in an effort to try to balance really tough budgets. This supplemental budget is meant to allow districts to respond to students’ needs and local needs.”
Massachusetts public schools are funded through a combination of state and local revenue. State education aid is primarily distributed through the Chapter 70 formula, which bases much of its funding on student enrollment. As enrollment declines, districts often receive less aid even though many of their expenses remain unchanged.
According to the Massachusetts Department of Elementary and Secondary Education, statewide public school enrollment has fallen by more than 5 percent since fiscal 2019, a decline of nearly 50,000 students. The Massachusetts School Building Authority’s 2025 School Survey Report found the largest losses have occurred in smaller rural districts, while communities including Wareham, Sandwich, and Pembroke have also experienced enrollment declines of roughly 25 percent.
The fiscal 2027 budget increased Chapter 70 education aid by $300 million compared to last year. Under the funding formula, a minimum level of school spending is set for districts, with schools funded through a combination of local revenue and state aid. Each municipality’s required contribution is calculated using measures such as local property wealth and residents’ income.
This year also marks the final year of the phase-in of a six-year school funding reform law known as the Student Opportunity Act. Enacted in 2019, the law revised the state’s school funding formula by increasing funding for districts based on student needs. Schools serving larger numbers of English learners, low-income students, and students receiving special education receive additional per-pupil funding beyond the base amount.
The proposed supplemental funding would come from anticipated “Fair Share” surtax revenue, a voter-approved ballot initiative that placed a surtax on annual income above $1 million. Surtax revenue has already been used to expand several education initiatives, including free community college, universal free school meals, and child care grants.
The fiscal 2027 budget assumes the tax will generate approximately $2.7 billion, but collections have exceeded expectations in recent years. During fiscal 2026, for example, Surtax revenue surpassed the amount built into the budget by more than $700 million. Once final collections are certified later this year, the remaining surplus can be used for supplemental spending on public education and transportation.
State lawmakers typically wait until the final revenue haul for a cycle is clear before spending any extra collections. Healey’s proposal would instead make a portion of that anticipated surplus available before schools reopen, allowing districts to make staffing decisions sooner.
Healey’s new proposal would provide districts with an extra $112 in minimum per pupil aid, on top of money they’re already set to receive from the annual state budget, although the amount each district receives would depend on its 2027 enrollment. It would amount to a one-time injection that does not make any permanent changes to school funding formulas or tackle broader economic pressures facing schools.
While educators and advocates applauded the proposal, Christy Nickerson, president of the Woburn Teachers Association, noted that one-time funding cannot permanently resolve gaps created by declining enrollment and rising costs.
“While $100 million is significant, it will not be enough to fully counterbalance the challenges that our communities face,” Nickerson said. “Spiraling costs for healthcare and special education and the outdated limitations that Proposition 2½ [a law that limits the amount of revenue cities and towns can raise from local property taxes] place on municipalities are forcing cities and towns to make decisions that are not in the best interests of students and families.”
Policymakers might begin to weigh a response to longer-term pressure points as the funding increases laid out by the Student Opportunity Act finish taking effect. The annual state budget Healey signed last week reconvenes a commission that will explore the school funding formula, likely setting the scene for the next round of debate.
Erik Berg, president of the Boston Teachers Union, said more than 500 Boston Public Schools employees had been expected to lose their jobs before the upcoming school year. He said the additional funding could reduce the number of layoffs and urged lawmakers to act quickly so districts can restore positions before classes begin.
Additionally, Nickerson said the funding could help preserve educational opportunities that districts have struggled to maintain during recent budget cycles.
“It is imperative that these Fair Share funds be used to prevent cuts to student-facing positions and to save programs – from academics to the arts – that ensure our students are getting a comprehensive, well-rounded education,” she said.
