MA S440

Creates a new School Budget Stabilization Fund to provide financial relief to school districts when Chapter 70 education funding is limited by the existing 4.5% inflation cap

Defines "extraordinary inflation" as any inflation exceeding the 4.5% cap on Foundation budget adjustments under current Chapter 70 law

Requires the Department of Elementary and Secondary Education to submit a restoration plan to the Board of Education when the Foundation Inflation Index exceeds 1.045 (4.5%)

Restoration plans must be no longer than five fiscal years, account for full funding lost to inflation, and consider projected future losses from previous shortfalls

Mandates annual reporting by September 1 to the joint committee on education and House and Senate ways and means committees on grants disbursed from the fund