An Act to Implement School Funding Based on Essential Programs and Services LR2124(02)
Maine Legislature, Session 121, LD 1623
Committee Amendment CA_A_S258 (Senate)
Amends: 20-A MRSA §15656

COMMITTEE AMENDMENT "A" to S.P. 575, L.D. 1623, Bill, "An 
Act To Implement School Funding Based on Essential Programs and 
Services" 
Amend the bill in Part A by striking out all of section 1 
and inserting in its place the following: 
'Sec. A·I. 20·A MRSA §15652, sub·§6, as enacted by PL 1995, c. 
368, Pt. Z, §l and affected by §2, is amended to read: 
6. 
Property fiscal capacity. 
"Property fiscal capacity" 
means the lesser of the average of the state valuation amounts 
for the 2 most recent years prior to the year of funding 9J!' ~ 
the state valuation amount for the most recent year, except that 
for fiscal year 2004-05 "property fiscal capacity" means 
the 
lesser of the average of the state valuation amounts for the 3 
most recent years prior to the year of funding and the state 
valuation amount for the most recent year. 
Sec. A-2. 20-A MRSA §15656, sub-§l, as enacted by PL 1999, c. 
401, Pt. GG, §S, is amended to read: 
1. 
Pupil count used for operating costs. 
The resident 
pupil count used for operating costs in this chapter is the 
greater of the average of the 2 census counts for the most recent 
calendar year and the average of the 4 census counts for the 2 
most recent calendar years, except that for fiscal year 2004-05 
the resident pupil count used for operating costs in this chapter 
is the greater of the average of the 2 census counts for the most 
Page l-LR2l24(2) 
COMMITTEE AMENDMENT 
'~;, 
COMMITTEE AMENDMENT "A" to S.P. 575, L.D. 1623 
recent calendar year and the average of the 6 census counts for 
the 3 most recent calendar years. 
A. 
The 2 census counts in each calendar year must be for 
April 1st and October 1st. 
B. 
As an exception, only the 2 census counts in the most 
recent calendar year may be used for: 
(1) 
Kindergarten to grade 8 students for units that 
send all their kindergarten to grade 
students as 
tuition students to schools elsewhere in the State; 
(2) 
Grade 9 to grade 12 students for units that send 
all their grade 
to grade 
students as tuition 
students to schools elsewhere in the State; and 
(3) 
Kindergarten to grade 12 students for units that 
send all their kindergarten to grade 12 students as 
tuition students to schools elsewhere in the State. 
Sec. A·3. 20·A MRSA §15660 is enacted to read: 
§15660. 
Repeal 
This chapter is repealed July 1, 2005.' 
Further amend the bill in Part A in section 3 in subsection 
in paragraph A in the 2nd line (page 1, line 21 in L.D.) by 
inserting after the following: 
"percentage" the following: 
I L 
excluding program cost allocation, debt service allocation and 
adjustments. ' 
Further amend the bill in Part A in section 3 in subsection 
in paragraph B by striking out all of subparagraphs (1) to (4) 
(page 1, lines 37 to 43 in L.D.) and inserting in their place the 
following: 
'(1) 
For fiscal year 2005-06, the target is 49%. 
( 2 ) 
For fiscal year 2006-07, the target is 49. 25'l-o. 
( 3) 
For fiscal year 2007-08, the target is 49.50'l-o. 
(4) 
For fiscal year 2008-09, the target is 49. 75'l-o. , 
Further amend the bill in Part A in section 4 in that part 
designated "§15672." in subsection 23 in the 3rd line (page 4, 
line 
in 
L.D. ) 
by striking out 
the 
following: 
"l" 
and 
inserting in its place the following: 
'~' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to s. P. 575, L. D. 1623 
Further amend the bill in Part A in section 4 in that part 
designated 
"§15674." 
in 
subsection 
in 
paragraph 
C 
in 
subparagraph (2) in the first line (page 6, line 29 in L.D.) by 
striking out the following: 
"~" and inserting in its place the 
fOllowing: 
'Q' 
Further amend the bill in Part A in section 4 in that part 
designated 
"§15674." 
in 
subsection 
in 
paragraph 
C 
in 
subparagraph (2) in the 2nd line (page 6, line 30 in L.D.) by 
striking out the following: 
"~" and inserting in its place the 
following: 
'1' 
Further amend the bill in Part A in section 4 in that part 
designated "§15680." in subsection 4 in the first line (page 12, 
line 32 in L.D.) by striking out the following: 
"2008-09" and 
inserting in its place the following: 
'2006-07' 
Further amend the bill in Part A in section 4 in that part 
designated "§15680." in subsection 4 in the 2nd line (page 12, 
line 
in L.D.) 
by striking out 
the 
following: 
"1" 
and 
inserting in its place the following: 
'~' 
Further amend the bill in Part A in section 
designated "§15681." in subsection 5 in the first 
line 12 in L.D.) by striking out the following: 
inserting in its place the following: 
'2006-07' 
in that part 
line (page 14, 
"2008-09" and 
Further amend the bill in Part A in section 4 in that part 
designated "§15681." in subsection 5 in the 2nd line (page 14, 
line 
in L.D.) 
by striking out 
the 
following: 
"1" 
and 
inserting in its place the following: 
'~' 
Further amend the bill in Part A in section 4 in that part 
designated "§15682." in the first paragraph in the 9th line (page 
14, line 29 in L.D.) by striking out the following: 
"2008-09, 
and at least every 3" and inserting in its place the following: 
'2006-07. and at least every 2' 
Further amend the bill in Part A in section 4 in that part 
designated "§15687." in the first paragraph in the 2nd line (page 
18, line 26 in L.D.) by striking out the following: 
"routine 
technical" and inserting in its place the following: 
'major 
substantive' 
Further amend the bill by relettering or renumbering any 
nonconsecutive 
Part 
letter 
or 
section 
number 
to 
read 
consecutively. 
COMMITTEE AMENDMENT 
:;1 ':,~,,: 
~~). :' 
COMMITTEE AMENDMENT "A " to S.P. 575, L.D. 1623 
SUMMARY 
This amendment is the majority report of the Joint Standing 
Committee 
on 
Education 
and 
Cultural Affairs. 
The 
amendment 
proposes to accomplish the fOllowing. 
1. 
It establishes July 1, 2005 as the effective date for 
the repeal of the School Finance Act of 1995 to coincide with the 
implementation 
of 
the 
transition 
to 
a 
new 
school 
funding 
approach, based on essential programs and services, beginning in 
fiscal year 2005-06. 
2. 
It establishes that, beginning in fiscal year 2004-05, 
the pupil 
counts 
and 
the 
property valuation data 
used 
for 
determination of the state subsidy to be distributed to each 
school administrative unit will be based on the averages of the 
annual numbers for pupil count and for property valuation for the 
most recent 3-year period or the pupil counts and the property 
valuation data for the most recent year, whichever results in a 
greater pupil count or a lesser property valuation compared to 
statewide averages for these factors. 
3. 
It clarifies that the annual targets established for the 
essential programs 
and services transition percentage exclude 
program cost allocation, debt service allocation and adjustments. 
4. 
It 
amends 
the 
annual 
targets 
established 
for 
the 
transition to 
an increased state share percentage 
under the 
essential programs and services funding approach. 
5. 
It amends the timeline established for reviewing the 
essential programs and services components by establishing that 
the review begins in fiscal year 2006-07 and takes place at least 
every 2 years thereafter. 
6. 
It amends the rule-making provisions of the bill to 
establish that rules adopted to implement the provisions of the 
Essential Programs and Services Funding Act are major substantive 
rules. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 06/04/03 frac:.. 
Office of Fiscal and Program Review 
LD 1623 
An Act to Implement School Funding Based on Essential Programs and 
Services 
LR2124(02) 
Fiscal Note for Bill as Amended by Committee Amendment '~"S-~5S? 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
$0 
2004-05 
Projections 
2005-06 
$0 
$ 
(17,017,327) $ 
$0 
$ 
(17,017,327) $ 
Projections 
2006-07 
4,198,058 
4,198,058 
This bill replaces the School Finance Act of 1995, the current method used to determine individual school units' 
operating cost subsidy, with the Essential Programs and Services Funding Act, which uses specific key components to 
determine the operating cost subsidy for each local school unit. Although the method used to calculate each school 
unit's operating subsidy is replaced, the current distribution method for the operating cost allocation established in the 
School Finance Act of 1995 is maintained. However, this bill makes changes to the calculation of pupil count and 
property fiscal capacity that is used to determine the amount of state subsidy to be distributed to each school 
administrative unit beginning in fiscal year 2004-05. Although this change will not impact the total amount of funds 
available for distribution for General Purpose Aid for Local Schools, it may affect the amount of school subsidy that 
each individual unit receives. The impact to each individual school unit can not be determined at this time. 
The School Finance Act of 1985, the current method used to determine program costs, debt service and all adjustments, 
is also maintained. However, the estimates provided by the Department assume the transition of program costs to the 
Essential Programs and Services model beginning in fiscal year 2005-06. 
Since the operating cost allocation for each school administrative unit will be determined based on a different set of 
factors than what is used in the current school funding formula, the subsidy amount for each local unit may change as 
well. The impact to each individual school unit cannot be determined at this time. A key component of operating cost 
allocation is the additional per pupil funding targeted at K-2 students, assessments and technology resources. Local 
school units will only receive this additional funding if it is in compliance with certain requirements or meets certain 
eligibility criteria. The impact on the local school units' funding associated with this key component can not be 
determined at this time. 
LR2124(2) - Fiscal Note - Page 1 of2 
The following table provides estimates for the total State and Local Operating cost of funding education based on the 
Essential Programs and Services model and compares the total State and Local cost of funding K-12 education based on 
the EPS model, adjusted for the transition percentage, with the total State and Local cost of funding education based on 
the current model. The table also provides a comparison of the General Fund appropriations that are estimated to be 
needed to fund the state's share of the cost of funding K-12 education. 
Total State & Local Operating 
Cost allocation based on EPS 
model (100%) 
EPS Transition Percentage 
Adjusted Total Operating 
Allocation based on EPS model 
Total State & Local cost based 
on EPS funding model 
(includes program costs, debt 
service and adjustments) 
Total State & Local cost based 
on current funding formula 
(includes program costs, debt 
service and adjustments) 
Net Increase (Decrease) in 
Allocation 
State Share Targets to fund K-
education based on EPS 
model 
Estimated General Fund 
appropriation needed to fund K-
education based on EPS 
model 
Estimated General Fund 
appropriation needed to fund K-
education based on current 
funding model 
Net General Fund 
Appropriation 
(De appropriation) required to 
fund EPS model vs.current 
funding formula 
Base Year 
2003-04* 
2004-05* 
2005-06 
2006-07 
$ 1,256,951,694 
$ 1,260,260,954 $ 1,270,125,664 
$ 1,285,714,652 
80.82% 
82.00% 
84.00% 
88.00% 
$ 1,015,868,359 
$ 1,033,413,982 
$ 1,066,905,558 
$ 1,131,428,894 
$ 1,467,457,416 
$ 1,518,173,106 
$ 1,537,199,970 
$ 1,618,879,589 
$ 1,467,408,432 
$ 1,503,862,194 
$ 1,543,887,175 
$ 1,589,694,612 
$ 
48,984 
$ 
14,310,912 
$ 
(6,687,205) $ 
29,184,977 
49.89% 
47.81% 
49.00% 
49.25% 
$ 
753,227,985 
$ 
797,298,197 
$ 
770,245,312 
$ 
793,100,139 
$ 
(17,017,327) $ 
4,198,058 
* No adjustment in fiscal year 2003-04 and fiscal year 2004-05 
LR2124(2) - Fiscal Note - Page 2 of2