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Northampton officials warn chapter 70 stagnation and growing education costs strain city finances
Summary
Officials said education accounts for the largest share of the general fund and that chapter 70 state aid has not kept pace with rising costs; special education and tuition outflows (charter/school choice) are growing net losses to the general fund.
City and school leaders told a joint meeting that education remains the largest share of Northampton’s general fund and that state aid is not keeping pace with rising education costs.
Director Nardi presented a breakdown showing education budgeted at roughly 43% of the general fund in FY26 ($55,946,000 in one cited figure) and, when indirect city expenses that support schools are included, education comprises about 56.51% of the general fund. She told the meeting that an estimated $15 million in indirect city‑paid expenses support MPS, bringing that district’s total to roughly $59,190,000; Smith Vocational’s combined total was shown at about $14,950,000.
The presentation highlighted the effect of charter school and school choice sending tuition on the general fund: those outflows, which are not counted toward DESE’s net school spending formula, were reported at $3,220,000 in the current fiscal year and are treated as growing budget pressures. "Both of which are significant and growing net losses for the city," Director Nardi said.
Officials emphasized chapter 70 data in DESE district profiles to illustrate that state aid (chapter 70) has remained relatively flat in nominal terms while local obligations and assessments have grown. The mayor described Northampton as a "minimum aid community," meaning formula factors limit chapter 70 increases even as local needs rise.
Members pressed for context about what cuts would mean operationally. Member Stein asked whether the city could operate schools if it reduced $16.9 million from net school spending above the DESE minimum; staff responded that the DESE required minimum is not a workable operational baseline and urged advocacy at the state level for formula changes. Director Nardi said city leaders have met with state legislators to seek changes to the foundation budget split and other DESE formula elements that affect Northampton’s share.
Ending: No formal decisions were made; staff said continued advocacy with state officials and careful budget planning would be priorities as the FY27 proposal is developed.
