Appendix C

Summary of Major Legislative Changes to ECS Formula

Year

Statutory Change

Impact

1988

· ECS program enacted to replace GTB system over 4 year period beginning FY 90

_ State support based on minimum spending level (foundation) rather than guaranteed tax base

_ Makes state aid levels more predictable

1989

· Formula's town wealth factor lowered from (from 2 x median town amount to 1.8335)

· Minimum aid provisions decreased

· Hold harmless provision enacted

_ State support reduced (in proportion to town wealth)

_ Increases limited but towns protected from drop in aid

1990

· Wealth factor lowered again (to 1.6651)

· Minimum aid provisions further decreased

· Hold harmless level continued

_ State support further reduced

_ Towns still protected from drop in aid

1991

· Minimum increase eliminated

_ State support further reduced

1992

· Wealth factor lowered again (to 1.5361)

· Cap established on maximum increase (2%)

· Phase-in levels of minimum expenditure requirement extended

_ State support further reduced

_ Annual increases limited regardless of greater need (e.g., higher enrollment, growth in need students)

_ Lower local spending requirement

1993

· Formula's foundation factor set at statutory amount ($4,800)

_ State support further reduced

_ Foundation level disconnected from actual education spending

1995

· Foundation increased (to $5,711)

· Wealth factor increased (to 1.55)

· Need student definition expanded to include special education students, students with limited English proficiency

· Supplemental aid factor (based on need student) added

· Municipal overburden factor (density supplement) added

· Hold harmless replaced with stoploss provision

· Mastery bonus eliminated (replaced by new student achievement categorical grant)

_ State support increased

_ More aid directed to districts with greater student need

_ More aid directed to most densely populated, urban districts

_ Improved student performance no longer formula factor

_ Decrease in local aid possible but limited

1996

· ECS grant amounts cut by specified percentage (1.02% for wealthiest towns; .56% for rest)

_ State support reduced

1997

· Alternative minimum increase created for priority school districts

_ More aid directed to neediest districts

1998

· Foundation increased (to $5,775)

· Maximum stoploss reduced

· Cap on increases raised (5%)

_ State support increased

_ Amount local aid can decrease further limited

_ Larger annual increases permitted for capped towns

1999

· Foundation increased (to $5,891)

· Measure of need students revised to freeze poverty factor

· Wealth factor revised to establish minimum base aid

· Hold harmless provision reestablished

· Cap raised (to 6%) and scheduled for elimination in FY 04

· Minimum expenditure requirement revised

_ State support increased

_ More aid directed to poorest communities

_ Higher spending required if enrollments rise

_ ECS funding provided to all towns regardless of wealth

_ Towns again protected from drop in aid

_ Capped towns permitted larger increases and no upward limit after FY 03

2000

· Bonus factor for regional districts increased (from $25 to $100 per pupil, in proportion to grades in region)

_ More aid directed to regional districts

2001

· Supplemental aid for capped towns added for two years ($25 million total in FY 02, $50 million in FY 03)

· Minimum increase provision ((1.68% in FY 02, 1.2% in FY 03) established for two years

_ State support increased

_ Additional aid directed to capped towns

_ All towns guaranteed increase over prior year