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Bill

S 1451

Relates to creating the Neighborhood Small Business Rent Increase Exemption

2025 Regular Session Introduced by Andrew Gounardes and 2 co-sponsors

Allows districts to create a restricted reserve fund up to 10% of annual net school spending to cover unbudgeted costs in future years without additional appropriation.

REPORTED AND COMMITTED TO FINANCE
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Bill Summary · S 1451

Summary — S.1451 (2025): Reserve Funds for School Districts

Note on inconsistency: The bill header provided in the request listed a different title (“Neighborhood Small Business Rent Increase Exemption”), but the full bill text and Senate docket for S.1451 (filed 1/13/2025) clearly propose establishing reserve funds for school districts. This summary is based on the bill text in the docket.

Purpose

To authorize Massachusetts school districts (including regional districts) to create a local, restricted reserve fund to cover unanticipated or unbudgeted school costs in upcoming fiscal years, reducing the need for ad hoc appropriations or midyear transfers.

Key provisions

  • Acceptance: A district must adopt the section by a majority vote of its school committee and a majority vote of the municipal legislative body (or, for regional districts, a majority vote of the legislative bodies in a majority of member communities).
  • Use: Money in the reserve fund may be used, without further appropriation, to pay “any and all unanticipated or unbudgeted costs” for upcoming fiscal years.
  • Cap: The balance of the reserve fund may not exceed 10% of the district’s annual net school spending.
  • Distribution approvals: Funds may be drawn only after:
    • a majority vote of the school committee; and
    • a majority vote of the municipal board of selectmen or city council; or for regional districts, majority votes of boards of selectmen or city councils in a majority of member communities.
  • Investment: The district treasurer may invest fund monies as authorized under G.L. c.44, §54; interest earned is credited to the fund.
  • Fiscal treatment: Money in the reserve fund “shall not be used against the required contributions by municipalities towards net school spending” — i.e., it cannot be counted to reduce municipal required school contributions.

Who is affected

  • School districts and regional school districts (school committees, district treasurers).
  • Municipal legislative bodies (city councils, boards of selectmen) in member communities.
  • Municipal budgets and taxpayers — the fund creates a formal mechanism to smooth unanticipated school expenses but does not permit municipalities to reduce statutory required school contributions by relying on the fund.

Procedural status & timeline (as provided)

  • Filed/Senate docket: 1/13/2025 (S.1451, petitioner listed as Sen. Edward J. Kennedy).
  • Introduced/read and referred: 2025-04-10 — referred to Committee on Homeland Security and Governmental Affairs (record shows additional committee referrals and hearings).
  • Reported and committed to Finance: noted 2025-02-25 in the provided actions.
  • Hearing scheduled (per record): 06/24/2025.
  • Current reported status (per header): REPORTED AND COMMITTED TO FINANCE.

Notes / Next steps

  • The record contains inconsistent metadata (different sponsor lists and committee referrals). The docket/petition identifies Sen. Edward J. Kennedy as petitioner; other sponsor names were listed separately. Verify the official Massachusetts Legislature bill page for S.1451 for the authoritative sponsor list, amendment history, and the latest status before citing or taking action.

Compiled from official sources — confirm details with the bill’s official record.

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