An Act to Reduce the Cost of Local Government through Increased State Education Funding and Provide Property Tax Relief LR2783(02)
Maine Legislature, Session 121, LD 1924
Committee Amendment CA_A_S545 (Senate)
Amends: 5 MRSA §1677, 20-A MRSA §6202-A, 20-A MRSA §6209, 20-A MRSA §15603, 20-A MRSA §15609, 20-A MRSA §15610, 20-A MRSA §15611, 20-A MRSA §15671, 20-A MRSA §1567, 20-A MRSA §15671-A, 20-A MRSA §15672, 20-A MRSA §15673, 20-A MRSA §15683, 20-A MRSA §15684, 20-A MRSA §15686

COMMITTEE AMENDMENT "A to S.P. 761, L.D. 1924, Bill, "An 
Act To Reduce the Cost of Local Government through Increased 
State Education Funding and Provide Property Tax Relief" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 5 MRSA §1677 is enacted to read: 
§I677. 
M1Inicipal Budget AnaJ.;ysis COIIIIlittee: established: 
membership 
There 
is 
established 
the 
Municipal 
Budget 
Analysis 
Committee« referred to in this section as "the committee«" for 
the purpose of providing the Governor and the Legislature with an 
analysis of the effectiveness of increased state support for 
education services in reducing the local property tax commitment 
required to fund the cost of the essential programs and services 
described in Title 20-A. section 15671. 
1. 
Membership: chair. 
The committee is composed of the 
following members: 
A. 
The 
Director of 
the State Planning Office 
or 
the 
director's designee; 
B. 
The 
Commissioner of Education or the cOmmissioner's 
designee; 
Page l-LR2783(2) 
COMMITTEE AMENDMENT 
~~, 
~~ 
COMMITTEE AMENDMENT 'A" to S.P. 761, L.D. 1924 
C. 
The State Budget Officer or the State Budget Officer's 
designee: 
D. 
The Director of the Bureau of Revenue Services within 
the Department of Administrative and Financial Services or 
the director's designee: 
E. 
A 
representative 
of 
a 
statewide 
organization 
that 
represents the interests of municipal governments, appointed 
by the Governor: and 
F. 
A 
representative 
of 
a 
statewide 
organization that 
represents 
the 
interests 
of 
public 
school 
educators, 
appointed by the Governor. 
The Governor shall appoint one of the members to serve as chair. 
2. 
Determination 
of 
effectiveness 
of 
increased 
state 
sgpport for public education in reduciug property tax. 
Beginning 
in fiscal year 2006-07 and ending in fiscal year 2009-10, the 
committee shall meet annually on or about June 15th and, 
in 
coordination with the development of budget estimates pursuant to 
section 1665, determine whether the state share percentage of the 
total costs of essential programs and services described in Title 
20-A, section 15671. subsection 7 was met in the prior fiscal 
year 
and 
to 
determine whether 
this 
level of state 
funding 
resulted in 
a 
reduction of 
the 
related local property tax 
commitment required to fund the costs of essential programs and 
services described in Title 20-A, section 15671 in the prior 
fiscal year. 
The committee's determination must be based on 
consideration of 
the 
following 
information developed by 
the 
Department of 
Education regarding each municipality and the 
statewide aggregate for the prior fiscal year: 
A. 
The 
total state 
and municipal 
spending for public 
education services for kindergarten to grade 12: 
B. 
The total costs of the essential programs and services 
described in Title 20-A, section 15671: 
C. 
The 
total state appropriation for 
public education 
services for kindergarten to grade 12: and 
D. 
The total local property tax commitment to support the 
provision of public education services for kindergarten to 
grade 12, municipal services and the local share of the 
county budget apportioned pursuant to Title 30-A, section 
~ 
COMMITTEE AMENDMENT 
~~. 
~:o 
COMMITTEE AMENDMENT "A" to S.P. 761, L.D. 1924 
3. 
BeDr;Pmarks and performance indicators. 
In addition to 
the considerations set forth in subsection 2, paragraphs A to D, 
the committee's determination under subsection 2 must be based on 
consideration 
of 
the 
following 
benchmarks 
and 
performance 
indicators for the specified state fiscal years. 
A. 
For fiscal year 2006-07: 
(1) 
The benchmark for the state share of the total 
cost of the essential programs and services described 
in Title 20-A, section 15671 is 48.0~; and 
(2) 
The 
performance 
indicator 
for 
the 
related 
reduction in local property tax commitment to fund the 
cost of the essential programs and services described 
in Title 20-A, 
section 15671 is 
3.5~ less than in 
fiscal year 2005-06. 
B. 
For fiscal year 2007-08: 
(1) 
The benchmark for the state share of the total 
cost of the essential programs and services described 
in Title 20-A, section 15671 is 50.0~; and 
(2) 
The 
performance 
indicator 
for 
the 
related 
reduction in local property tax commitment to fund the 
cost of the essential programs and services described 
in Title 20-A, 
section 15671 is 
3.5~ less than in 
fiscal year 2006-07. 
C. 
For fiscal year 2008-09: 
(1) 
The benchmark for the state share of the total 
cost of the essential programs and services described 
in Title 20-A, section 15671 is 52.5~; and 
(2) 
The 
performance 
indicator 
for 
the 
related 
reduction in local property tax cOmmitment to fund the 
cost of the essential programs and services described 
in Title 20-A, 
section 15671 is 
4.0~ less than in 
fiscal year 2007-08. 
D. 
For fiscal year 2009-10: 
(1) 
The benchmark for the state share of the total 
cost of the essential programs and services described 
in Title 20-A, section 15671 is 55.0~; and 
COMMITTEE AMENDMENT 
~fb· 
'?A~ 
'" . 
COMMITTEE AMENDMENT 'A" to S.P. 761, L.D. 1924 
(2) 
The 
performance 
indicator 
for 
the 
related 
reduction in local property tax commitment to fund the 
cost of the essential programs and services described 
in Title 20-A. 
section 15671 is 4.5% less than in 
fiscal year 2008-09. 
4. 
Annual report. 
The committee shall provide an annual 
report to the Governor and to the joint standing committee of the 
Legislature having jurisdiction over appropriations and financial 
affairs. the joint standing committee of the Legislature having 
jurisdiction over education and cultural affairs and the joint 
standing committee of the Legislature having jurisdiction over 
taxation matters no later than September 1st in each of the 
fiscal years in which it meets pursuant to subsection 2. 
The 
committee's annual report must include the following: 
A. 
The information developed by the Department of Education 
in accordance with subsection 2; 
B. 
A progress report of the actions of state and local 
officials in accomplishing the benchmarks and performance 
indicators specified in subsection 3; and 
C. 
Analyses of and findings with respect to the relevant 
factors. 
including 
any 
extenuating 
or 
exceptional 
circumstances. 
that contributed to the accomplishment or 
failure 
to 
accomplish 
the 
penchmArks 
And 
performance 
indicators specified in subsection 3 by state and local 
officials. 
Sec. 2. 20-A MRSA §6202-A, sub-§§3 and 4, as enacted by PL 
2001, c. 454, §30, are amended to read: 
3. 
Public 
high 
school 
graduation 
decisions. 
By 
the 
6QQS-6QQ+ 
2007 -2008 school year, public high school graduation 
must be determined by student achievement of the standards of the 
system of learning results in English language arts, health and 
physical 
education, 
mathematics, 
science 
and 
technology 
and 
social studies, based on the school administrative unit's local 
assessment 
system 
established 
pursuant 
to 
this 
section 
in 
addition to other requirements as established by school board 
pOlicy. 
By 
the 
2009-2010 
school 
year, 
public 
high 
school 
graduation must be determined by student achievement of the 
standards of the system of learning results in all content areas 
of 
the 
system 
of 
learning 
results, 
based 
on 
the 
school 
administrative unit's assessment system established pursuant to 
subsection I in addition to other requirements as established by 
policy of the school board. 
COMMITTEE AMENDMENT 
~fC:;; . 
. ~~ 
... 
COMMITTEE AMENDMENT .~. to S.P. 761, L.D. 1924 
4. 
Graduation decisions at certain private biqh schools. By 
the aQQe-aQQ+ 2007 -2008 school year, high school graduation for 
publicly funded students in private schools approved for tuition 
that enroll at least 60% publicly funded students, as determined 
by 
the 
previous 
school 
year' s 
October 
and 
April 
average 
enrollment, must be determined by student achievement of the 
standards of the system of learning results in English language 
arts, health and physical education, mathematics, science and 
technology, and social studies, in addition to other requirements 
that may be established by the trustees. 
By the 2009-2010 school 
year, high school graduation for publicly funded students in 
private schools must be determined by student achievement of the 
standards of the system of learning results in all content areas 
of 
the 
system 
of 
learning 
results, 
in 
addition 
to 
other 
requirements as established by the trustees. 
Sec. 3. 20-A MRSA §6209, sub-§3, as enacted by PL 2001, c. 
454, §32, is amended to read: 
3. 
Career 
preparation; 
foreiqn 
Ianquaqes; 
visual 
and 
performinq arts. 
By the end of the 2002-2003 school year, each 
school administrative unit shall address in the comprehensive 
education plan, as required in section 4502, subsection 1, how 
the school administrative unit will implement for all students 
the content areas of career preparation, foreign languages and 
visual and performing arts, including interim targets for partial 
implementation. 
By the end of the 
aQQe-aQg+ 2007-2008 school 
year, 
each local 
school 
administrative unit shall 
implement 
standards in these additional content areas of the system of 
learning results, 
contingent upon funding based on essential 
programs and services or its equivalent. 
Notwithstanding any 
other provision of this chapter, the commissioner is authorized 
to establish rules for inclusion of some portion of the standards 
in visual and performing arts for the graduating class of 6gQ9-9+ 
2007-2008. 
Sec. 4. 20-A MRSA §15603, sub-§ll-A, as enacted by PL 1993, c. 
410, Pt. F, §13, is amended to read: 
1I-A. 
Fiscal capacity. 
"Fiscal capacity" means the ability 
of a municipality to raise property tax revenues. 
For each year 
of funding, fiscal capacity is measured as the average of the 
state valuation amounts for the 2 most recent years prior to the 
year of funding. 
For fiscal year 1993-94 and fiscal year 1994-95 
only, if the most recent state valuation amount is less than the 
average of the 2 most recent state valuation amounts, the fiscal 
capacity of the municipality is considered to be 
the state 
valuation for the most recent year. 
Beginning in fiscal year 
2005-06, "fiscal capacity" means the certified state valuation 
for 
the 
year 
prior 
to 
the 
most 
recently 
certified state 
COMMITTEE AMENDMENT 
~~-
~ 
.10..-.. 
COMMITTEE AMENDMENT ,~, to S.P. 761, L.D. 1924 
valuation. 
The 
fiscal 
capacity 
of 
a 
school 
administrative 
district or a community school district is the sum of the fiscal 
capacity amounts of its member municipalities. 
Sec.5. 20-A MRSA §15609, sub-§2 is enacted to read: 
2. 
Repeal. 
This section is repealed July I. 2005. 
Sec. 6. 20-A MRSA §15610, sub-§2 is enacted to read: 
2. 
Repeal. 
This section is repealed July 1. 2005. 
Sec. 7. 20-A MRSA §15611, sub-§3 is enacted to read: 
3. 
Repeal. 
This section is repealed July I. 2005. 
Sec. 8. 20·A MRSA §15613, sub·§13, as enacted by PL 1987, c. 
848, §10, is amended to read: 
13. 
Minimum state allocation. 
Effective 
1988-89, 
each 
school administrative unit saall-se ~ guaranteed a m1n1mum state 
share of its total allocation that is determined by multiplying 
5'%. of the foundation per pupil operating rate by the average 
number of resident kindergarten to grade 12 pupils, including 
special education tuition pupils, in the unit on April 1st and 
October 1st of the calendar year immediately prior to the year of 
allocation. 
These funds saall I!!.Y.i.t be included as part of the 
school unit's total allocation as computed under this chapter and 
not as 
an adjustment to the unit's total allocation. 
~ 
subsection is repealed July I. 2005. 
Sec. 9. 20-A MRSA §15671, sub-§l, as enacted by PL 2001, c. 
660, §1, is amended to read: 
1. 
State and local partnership. 
The State and each local 
school 
administrative 
unit 
are 
jointly 
responsible 
for 
contributing to the. cost of the components of essential programs 
and services described in this chapter. 
The state contribution 
to the cost of the components of essential programs and services, 
exclusive of federal funds that are provided and accounted for in 
the cost of the components of essential programs and services, 
must be made in accordance with this subsection: 
A. 
The level of the state share of funding attributable to 
the 
cost 
of 
the 
components 
of essential 
programs 
and 
services must be at least 50'%. of eligible state and local 
General Fund education costs statewide, no later than fiscal 
year 2007-08; and 
COMMITTEE AMENDMENT 
~~. 
\;), 
'\~. 
COMMITTEE AMENDMENT "A, to s.P. 761, L.D. 1924 
B. 
By fiscal year 2009-10 the state share of the total cost 
of funding public education from kindergarten to grade 12, 
as described by essential programs and services, must be 
.5..5b. 
Beginning in fiscal year 
6GG~-G4 2005-06 and in each 
fiscal year until fiscal year 6GG+-G8 2009-10, 
~ae-level-ef 
the state share 
ef-.f~~-at-t-c-i-but.-ab-1e--t:&-~he-...(l()&t:--G-f--~ae 
eem~eReRts of essential 
programs 
and 
services described 
costs must increase toward the 
gQ% ~ level 
ef--e-J:.~i-ale 
state--an4-.,l~--GeRe!'al--F-und--~&-i~-e9sts required in 
fiscal year 2009-10. 
Beginning in fiscal year 6GG~-G4 2005-06 and in each fiscal year 
thereafter, 
the 
commissioner 
shall 
use 
the 
funding 
level 
determined in accordance with this section as the basis for a 
recommended funding level for the state share of the cost of the 
components of essential programs and services. 
Sec. 10. 20-A MRSA §1567l, sub-§7, 1JB, as enacted by PL 2003, 
c. 504, Pt. A, §5, is amended to read: 
B. 
The annual targets for the state share percentage are as 
follows. 
(1) 
For fiscal year 2005-06, the target is 49% ~. 
(2) 
For fiscal year 2006-07, 
the target is 49T69% 
~. 
(3) 
For fiscal year 2007-08, the target is 49T9G% 53%. 
(4) 
For fiscal year 2008-09, the target is 49T+9% 54%. 
(5) 
For fiscal year 2009-10 and succeeding years, the 
target is eG% ~. 
Sec. 11. 20-A MRSA §15671-A is enacted to read: 
§15671 A. 
Property tax contribution to Pub1ic education 
1. 
Definitions. 
As 
used in this section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Funding public education from kindergarten to grade 12" 
means providing the cost of funding the essential programs 
and 
services 
described in this 
chapter plus 
the total 
allocations 
for 
program 
cost, 
debt 
service 
costs 
and 
adjustments. 
COMMITTEE AMENDMENT 
~~. 
t,t" 
.: .. ~(,. ... 
COMMITTEE AMENDMENT ,A" to S.P. 761, L.D. 1924 
B. 
"Local cost share expectation" means the maximum amount 
of money for funding public education from kindergarten to 
grade 12 that may be derived from property tax for the 
required local contribution established in section 15688, 
subsection 3. 
2. 
Local cost share 
e~CtatioD. 
The local cost share 
expectation is established as follows. 
A. 
Notwithstanding any other provision of law, with respect 
to the assessment of any property taxes for property tax 
years beginning on or after April 1, 2005, this subsection 
establishes the local cost share expectation that may be 
assessed on the value of property for the purpose of funding 
public 
education 
from 
kindergarten 
to 
grade 
12. 
The 
COmmissioner shall annually by February 1st notify each 
school 
administratiye 
unit 
of 
its 
local 
cost 
share 
expectation. 
Each 
superintendent 
shall 
report 
to 
the 
municipal officers whenever a school administrative unit is 
notified of the local cost share expectation or a 
change 
made in the local cost share expectation resulting from an 
adjustment. 
B. 
For prQperty tax years beginning on Qr after April L 
2005. 
the 
commissioner 
shall 
calculate 
the 
full-yalue 
education mill rate that is required to raise the total of 
the local cost share expectation. 
The full-value education 
mill rate is calculated by diyiding the applicable tax year 
percentage of the projected cost of funding public education 
from kindergarten to grade 12 by the certified total state 
valuation for the year prior to the most recently certified 
total 
state 
yaluation 
for 
all 
municipalities. 
The 
full-yalue education mill rate must decline oyer the period 
from fiscal year 2005-06 to fiscal year 2009-10 and may not 
exceed 9.0 mills in fiscal year 2005-06 and may nQt exceed 
8.0 mills in fiscal year 2009-10. 
The fu1l-yalue education 
mill 
rate must 
be 
gpplied according 
to 
sectiQn 
15688, 
subsection 3. 
paragraph A to determine 
a 
municipality's 
local cost share expectation. 
Full-value education mill 
rates must be derived according to the follQwing schedule. 
(1) 
For the 2005 prQperty tax year. the full-value 
education mill rate is the amount necessary to result 
in a 47.4% local share in fiscal year 2005-06. 
(2) 
For the 2006 property tax year, the full-value 
educatiQn mill rate is the amount necessary to result 
in a 47.4% local share in fiscal year 2006-07. 
COMMITTEE AMENDMENT 
~~ 
.. 
. ",'~\-
\~;' ... 
COMMITTEE AMENDMENT "A' to S.P. 761, L.D. 1924 
(3) 
For the 2007 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 47.0% local share in fiscal year 2007-08. 
(4) 
For the 2008 pr0l>erty tax year, the full-value 
education mill rate is the amount necessary to result 
in a 46.0% local share in fiscal year 2008-09. 
(5) 
For the 2009 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 45.0% local share in fiscal year 2009-10. 
3. 
Exceeding 
lIlal!:imum 
local 
cost 
share 
expectations; 
separate article. 
Beginning with the 2005-2006 school budget. 
the legislative body of a school administrative unit may adol>t 
property tax rates that exceed the local cost share expectation 
established by section 15688, subsection 3, paragraph A if that 
action is approved in a separate article by a vote of the school 
administrative unit's legiSlative body through the same process 
that the school budget is approved in that school administrative 
unit. 
Sec. 12. 20-A MRSA §15672, sub-§23, as enacted by PL 2003, c. 
504, Pt. A, §6, is amended to read: 
23. 
Property fiscal capacity. 
"Property fiscal capacity" 
means the ~esse~-e~-~~~~~~-~Ae certified state valuation 
am9QR~S amount for the a-~9s~-EeeeR~-yea~6 ~ 
prior to the yeaF 
9E--f-und-j,.nq--aRQ--t.-he--s~a~e-~-uat-4on--am9QI1~--f~--~Ae most 
~eeellt 
yea~ recently certified state valuation. 
Sec. 13. 20-A MRSA §15673, as enacted by PL 2003, c. 504, Pt. 
A, §6, is repealed and the following enacted in its place: 
§15673. 
Re1ationship to Schoo1 Finance Act of 1985 
The provisions of chapter 606 apply for the purposes of 
calculating the total allocations for program costs and debt 
service and for the purposes of calculating adjustments under 
section 15612 and miscellaneous reimbursements and subsidy under 
section 15613. 
Sec. 14. 20-A MRSA §15683, first 1[, as enacted by PL 2003, c. 
504, Pt. A, §6, is amended to read: 
For 
each school 
administrative unit, 
that unit's total 
operating allocation is the base total set forth in subsection 1 
as adjusted in accordance with subsection 2 and including the 
total amount for subsection 3. 
COMMITTEE AMENDMENT 
.... ~. 
_ "9 
<>,~;;:'''' 
COMMITTEE AMENDMENT -A" to S.P. 761, L.D. 1924 
Sec. 15. 20-A MRSA §15684, sub-§3 is enacted to read: 
3. 
Repeal. 
This section is repealed July I. 2005. 
Sec. 16. 20-A MRSA §15686, as enacted by PL 2003, c. 504, Pt. 
A, §6, is amended to read: 
§15686. 
Transition adjustment 
For each of the fiscal years described in section 15671, 
subsection 7, 
the 
commissioner 
shall establish a 
transition 
adjustment calculated to minimize 
the 
adverse fiscal 
impact 
ai~eeely---~elaeea---ee 
that 
may 
be 
experienced 
Qy 
some 
municipalities as a result of the phase-in of this Act. 
The 
transition adjustment for a municipality must be directly related 
to tbe phase-in of essential programs and services and the local 
cost 
share 
expectation 
method 
under 
section 
15671-A 
of 
determining 
the 
local 
contriQution 
to 
the 
cost 
of 
funding 
essential programs and services. 
The amount of this adjustment 
must 
decline 
with 
each 
successive 
fiscal 
year, 
and 
the 
adjustments must end no later than fiscal year 2009-10. 
Sec. 17. 20-A MRSA §§15688 and 15689 are enacted to read: 
§15688. 
School administrative un; t contribution to total cost of 
funding public education frOll! kindergarten to grade 12 
1. 
School administrative unit: total cost. 
For each school 
administrative unit. the Commissioner shall annually determine 
the school administrative unit's total cost of education. 
A 
school ~dministrative unit's total cost of education must include: 
A. 
The school administrative unit's total cost of funding 
essential programs and services subject to the transition 
percentages 
described 
in 
section 
15671. 
subsection 
7. 
paragraph A: 
B. 
The program cost allocation as used in chapter 606: and 
C. 
The debt service allocation as used in chapter 606. 
2. 
Member municipalities in school administrative districts 
or 
cODQUDity 
school 
districts: 
total 
costs. 
For 
each 
municipality that is a member of a school administrative district 
or community school district. the commissioner shall annually 
determine 
each 
municipality's 
total 
cost 
of 
education. 
A 
municipality's 
total 
cost 
of 
education 
is 
the 
school 
administrative district's or community school district's total 
cost 
of 
funding 
multiplied 
QY 
the 
percentage 
that 
the 
COMMITTEE AMENDMENT 
.{::~ .. 
",~~ ;.~\ ~ 
'\~~ .. 
COMMITTEE AMENDMENT ~' to S.P. 761, L.D. 1924 
municipali ty' s most recent calendar year average pUJ?il count is 
to 
the 
school 
administrative district's or 
community 
school 
district's most recent calendar year average pupil count. 
3. 
School administrative unjt; 
contribution. 
For 
each 
school 
administrative 
unit, 
the 
commissioner 
shall 
annually 
determine 
the 
school 
administrative 
unit's 
contribution 
in 
accordance with the following. 
A. 
Tha school administrative unit's contribution to the 
total cost of education is the lesser of: 
(1) 
The total cost for each municipality as described 
in subsection 1 or 2; and 
(2) 
The total of the full-value education mill rate 
calculated in section 15671-A, subsection 2 multiplied 
by the certified state valuation for the year prior to 
the most recently certified state valuation for each 
municipality in the school administrative unit. 
B. 
The state contribution to the school administrative 
unit's total 
cost of 
education is 
the 
total 
cost 
of 
education calculated pursuant to 
subsection 
less 
the 
school 
administrative 
unit's 
contribution 
calculated 
pursuant to paragraph A. 
4. 
Method of cost sharing; exception. 
For the purpose of 
local cost sharing, the provisions of subsection 3 do not apply 
to municipalities that are members of a school administrative 
district or 
a 
community 
school district whose 
cost sharing 
formula was established pursuant to private and special law prior 
to January 1, 2004. 
For each municipality that is a member of a 
school administrative district or a 
community school district 
whose cost sharing formula was established pursuant to private 
and special law prior to January 1, 
2004, 
the cost sharing 
formula 
established 
pursuant 
to 
private 
and 
special 
law 
determines each municipality's local cost of education. 
5. 
Effective date. 
This section takes effect July 1, 2005. 
§156S9. 
Adjustments to state share of total allocation 
Beginning July L 
2005, adjustments to the state share of 
the total allocation must be made as set out in this section. 
1. 
Mini.mum state allocation. 
Each school administrative 
unit must be guaranteed a 
m~n~mum state share of its total 
allocation that is determined by the sum of the following: 
COMMITTEE AMENDMENT 
,>" 
,.;', ~,~)~~ 
.. ~~~ 
COMMITTEE AMENDMENT ,,~, to S.P. 761, L.D. 1924 
A. 
Multiplying 
5~ of each school administrative unit's 
essential programs and services per-pupil elementary rate by 
the average 
number of resident kindergarten to grade 
pupils 
as determined under section 15674, 
subsection 1, 
paragraph C, subparagraph (1); and 
B. 
Multiplying 
5~ of each school administrative unit's 
essential programs and services per-pupil secondary rate by 
the average number of resident grade 9 to grade 12 pupils as 
determined under section 15674, subsection L 
paragraph C. 
subparagraph (1). 
These funds must be included as part of the school administrative 
unit's total allocation as computed under this chapter and not as 
an 
adjustment 
to 
the 
§chool 
administrative 
unit's 
total 
allQcation. 
z. 
Adjustment for debt service. 
Each schoQI administrative 
unit may receive an adjustment fQr a debt service determined as 
fQllows. 
A. 
A school 
administrative unit is eligible 
for 
this 
adjustment under the following conditiQns. 
(1) 
The 
schQol 
administrative 
unit's 
local 
share 
results in a full-value education mill rate less than 
the 
IQcal 
cost 
share 
expectation 
as 
described 
in 
section 15671-A. 
(2) 
The school administrative unit has debt service 
costs defined under section 15603, subsection 8 that 
have been placed on the state board's priority list by 
January 2005. 
B. 
The amount of the adjustment is the difference, but not 
less 
than zero, 
between the state share of 
the total 
allocation under this chapter and the amount computed as 
follows. 
(1) 
The school administrative unit's state share of 
the total allocation if the local share was the sum of 
the following: 
(a) 
The 
local 
share 
amount 
for 
the 
school 
administrative unit calculated as the lesser of 
the total allocation excluding debt service costs 
and 
the 
school 
administrative 
unit's 
fiscal 
capacity multiplied by the mill rate expectation 
established in section 15671-A less .50 mills; and 
COMMITTEE AMENDMENT 
",~. 
'''..,. 
.... ", \.,:;..-
, '> ". 
COMMITTEE AMENDMENT ,~, to S.P. 761, L.D. 1924 
(b) 
The 
local 
share 
amount 
for 
the 
school 
administrative unit calculated as the lesser of 
the 
debt 
service 
costs 
and 
the 
school 
administrative unit's fiscal capacity multiplied 
by .50 mills. 
3. 
AdjustmeDt limitatioDs. 
The amounts of the adjustments 
paid 
to 
school 
administrative 
units 
or 
municipalities 
in 
subsections 1 and 2 are limited to the amounts appropriated by 
the Legislature for these adjustments. 
Sec. 18. Basis for funding costs of education from kindergarten to 
grade 12. 
Notwithstanding any other provision of law, beginning 
in fiscal year 2005-06, funding of the costs of education from 
kindergarten to grade 12 must be based on the cost of providing 
essential programs and services as described in the Maine Revised 
Statutes, Title 20-A, chapter 606-B. 
Sec. 19. Special education. 
To ensure greater consistency in 
providing special education services, beginning on January 1, 
2005, 
state-approved 
guidelines 
must 
be 
used 
in 
the 
identification of children requiring special education services. 
Beginning in fiscal year 2004-05, 
the Department of Education 
shall provide to school administrative units training in the 
application of the state-approved identification guidelines and 
shall conduct periodic reviews to ascertain compliance in the 
application of the state-approved guidelines. 
To ensure greater 
equity and efficiency in the use of special education resources, 
beginning in fiscal year 2005-06, special education costs must be 
included in the essential programs and services operating cost 
calculations and be based on a special education funding formula 
that adheres to the 4 principles of being cost-based, equitable, 
flexible and identification-neutral. 
The funding formula must 
include provisions for providing supplemental funds for school 
districts with extraordinary expenses associated with high-cost 
in-district and out_of-district special education services and 
programs. 
Sec. 20. 
Transportation. 
To 
ensure 
greater 
equity 
and 
adequacy 
in 
providing 
transportation 
services, 
beginning 
in 
fiscal year 2005-06, transportation costs must be included in the 
essential programs and services operating costs calculations and 
be 
based on 
school 
administrative unit pupil 
transportation 
densities and adjustments for in-district and out-of-district 
required 
special 
education 
and 
vocational 
education 
transportation costs and may include other factors that respond 
to unique costs in some school administrative units. 
Beginning 
in 
fiscal 
year 
2005-06, 
an 
appeals 
process 
to 
determine 
exceptions to the transportation operating cost for a 
school 
COMMITTEE AMENDMENT 
~~ 
.. 
'l>;'§'> 
COMMITTEE AMENDMENT 'A" to S.P. 761, L.D. 1924 
administrative 
unit 
must 
be 
implemented. 
All 
appeals 
must 
include, 
but 
may 
not 
be 
limited to, 
an 
analysis 
of 
cost 
efficiency and a cost comparison with school administrative units 
having comparable pupil transportation density indices. 
Sec. 21. Early childhood and vocational education. 
To ensure 
greater equity of education opportunities and efficiency in the 
use 
of 
early 
childhood 
and 
vocational 
education 
resources, 
beginning no later than fiscal year 2007-08, 
early childhood 
program costs and vocational education program costs must be 
included in the essential programs and services operating cost 
calculations. 
Sec. 22. Sharing of total costs in school administrative districts and 
community school districts whose cost sharing formulas were created by 
private and special law; Department of Education facilitation. 
To ensure 
that member municipalities of school administrative districts and 
community 
school districts whose 
cost sharing 
formulas 
were 
established 
by 
private 
and 
special 
law 
do 
not 
experience 
significant adverse impacts as 
a 
result of the cost sharing 
mechanism established pursuant to the Maine Revised Statutes, 
Title 
20-A, 
section 
15688, 
subsection 2, 
the 
Department of 
Education 
shall 
facilitate 
a 
review 
and 
analysis, 
school 
administrative 
unit 
by 
school 
administrative 
unit, 
of 
the 
implications of this proposed cost sharing mechanism on the 
member municipalities of these school administrative districts 
and community school districts. 
The Department of Education 
shall 
report 
the 
findings 
of 
this 
review, 
including 
any 
reCommended legislation, to the First Regular Session of the 
122nd Legislature by January 31, 2005.' 
SUMMARY 
This amendment replaces the bill and makes the following 
changes to the bill. 
1. 
It amends the existing state share percentage targets 
for fiscal year 2005-06 through fiscal year 2009-10 to provide 
for the so-called "ramp" necessary to achieve the 55°1> state share 
of school funding based on the essential programs and services 
funding model. 
2. 
It provides for the establishment of the Municipal 
Budget Analysis 
Committee 
for 
the purpose 
of providing the 
Governor 
and 
the 
Legislature 
with 
an 
analysis 
of 
the 
effectiveness of increased state support for education services 
in reducing the local property tax commitment required to fund 
the cost of the essential programs and services over the 2005-06 
to 2009-10 period. 
The committee shall consider in its analysis 
COMMITTEE AMENDMENT 
,,.. 
:.~~~~., 
;~\~.~~. 
COMMITTEE AMENDMENT ,A .. to s.P. 761, L.D. 1924 
certain benchmarks 
for 
the 
increased state share 
of 
school 
funding and performance indicators for the related reduction in 
local property tax commitments for each fiscal year; and the 
Department 
of 
Education 
shall 
develop 
information 
for 
the 
committee on each municipality and the statewide aggregate to 
determine whether the increased level of state funding resulted 
in a 
reduction of the related local property tax commitment 
required to fund the costs of essential programs and services in 
the prior fiscal year. 
3. 
It delays the requirements for school administrative 
units and certain private high schools to implement standards in 
the content areas of mathematics, English language arts, health 
and 
physical 
education, 
science 
and 
technology 
and 
social 
studies, including the requirement that high school graduation be 
determined by student achievement of the standards for these 
content areas, by one year to the 2007-2008 school year. 
It also 
delays 
the 
requirements 
that 
school 
administrative 
units 
implement standards in the content areas of career preparation, 
foreign languages and visual and performing arts by one year to 
the 2007-2008 school year. 
4. 
It deletes the section of the bill that proposes to 
place transportation operating costs into the essential programs 
and 
services 
funding 
model 
and 
instead 
incorporates 
an 
unallocated section that provides that transportation operating 
costs must be placed in the essential programs and services 
funding model beginning in fiscal year 2005-06 and must include 
adjustments to the proposed calculation of these operating costs 
to reflect the transportation of special education students and 
vocational education students and other factors that respond to 
unique costs in some school administrative units. 
This section 
also provides that the proposed appeals process may also include 
analyses of other factors beyond cost efficiency and a 
cost 
comparison with comparable units. 
5. 
It provides a technical amendment to the definition of 
"local cost share expectation" to clarify that this expectation 
is 
directly 
related 
to 
the 
school 
administrative 
unit's 
contribution to the "total cost of education" as determined by 
the Commissioner of Education. 
6. 
It provides a technical amendment to clarify that the 
calculation of the full-value education mill rate is derived from 
an annual local share percentage beginning in fiscal year 2005-06 
and concluding in fiscal year 2009-10. 
7. 
It 
legislative 
clarifies 
that 
body may exceed 
a 
the 
school 
local 
administrative 
unit's 
cost share expectation 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'A" to s. P. 761, L.D. 1924 
beginning in fiscal year 
2005-06 rather than in fiscal year 
2009-10 as proposed in the bill. 
8. 
It 
establishes 
an 
exception 
for 
the 
member 
municipalities of school administrative districts and community 
school 
districts 
whose 
district cost 
sharing 
formulas 
were 
established by private and special law and further directs the 
Department of Education to study the implications of the proposed 
"total cost of education" mechanism on member municipalities of 
districts whose district cost sharing formulas were created by 
private and special law. 
9. 
It establishes January 1, 
2005 as the implementation 
date 
for 
the 
use 
of 
state-approved 
guidelines 
in 
the 
identification of children requiring special education services 
and 
provides 
that the Department of 
Education will 
provide 
training to school administrative units in the application of 
these guidelines beginning in fiscal year 2004-05. 
FISCAL NOTE REQUIRED 
(See attached) 
Page l6-LR2783(2) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 04116/04 ,;;:J!;pae. 
Office of Fiscal and Program Review 
LD 1924 
An Act to Reduce the Cost of Local Government through Increased 
State Education Funding and Provide Property Tax Relief 
LR2783(02) 
Fiscal Note for Bill as Amended by Committee Amendment 'A 
Committee: Taxation 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
$0 
2004-05 
Projections 
2005-06 
Projections 
2006-07 
$0 
$ 55,339,199 
$ 54,232,466 
$0 
$ 55,339,199 
$ 54,232,466 
This bill requires the State's share of funding K-12 public education to increase to 55% by fiscal year 2009-10 versus 
the 50% requirement that was approved by the Legislature in Public Law 2003, c. 504, An Act to Implement School 
Funding Based on Essential Programs and Services. This bill also provides for the calculation of a full-value 
education mill rate that is required to raise the total of the local cost share expectation and requires that this rate 
decline over the fiscal year 2004-06 to fiscal year 2009-10 time period. This bill also specifies that the full-value 
education mill rate may not exceed 9.0 mills in fiscal year 2005-06. The Department of Education estimates the mill 
rate expectation to be 7.98 mills in fiscal year 2005-06. 
This bill also provides for the Commissioner of Education to establish a transition adjustment through fiscal year 2009-
for municipalities that experience an adverse fiscal impact as a result of the phase-in of the essential programs and 
services model and the local cost share expectation method of determining the local contribution of funding essential 
programs and services. This bill requires the transition adjustment amount to decline in each successive year through 
fiscal year 2009-10. Since this legislation does not specify the transition amounts for fiscal year 2005-06 through 
fiscal year 2009-10, this fiscal note assumes that the transition adjustment declines evenly over the 5-year period. 
This fiscal note also assumes that the transition adjustment amounts are included in the estimated General Fund 
appropriation amounts needed to fund K-12 education based on the Essential Programs and Services model in this 
measure, thereby affecting the distribution among individual school units. The impact to each local school unit can 
not be determined at this time. 
LR2783(2) - Fiscal Note - Page 1 of2 
Additional costs to the Department of Education, the State Planning Office, the Bureau of the Budget and Maine 
Revenue Services to serve on the Municipal Budget Analysis Committee and to prepare the required report can be 
absorbed utilizing existing budgeted resources. 
The following table provides estimates for the total State and Local Operating Cost of funding education based on tt 
Essential Programs and Services model and provides a comparison of the General Fund appropriations that are 
estimated to be needed to fund the state's share ofthe cost of funding K-12 education based on the State's contribution 
reaching 50% in fiscal year 2009-10, as approved in Public Law 2003, c. 504, versus the 55% State contribution by 
fiscal year 2009-10 proposed in this legislation. 
State and Local Cost to Fund K-12 Public Education 
Utilizing the Essential Programs and Services Model 
Comparison of 50% State Contribution vs. 55% by FY 2009-10 
Total State & Local Operating Cost 
allocation based on EPS model 
(100%) 
EPS Transition Percentage 
Adjusted Total Operating Allocation 
based on EPS model approved in P.L. 
2003,c.504 
Total State & Local cost based on 
EPS funding model approved in P.L. 
2003, c. 504 (includes program costs, 
debt service and adjustments) 
State Share Targets to fund K-12 
education based on EPS model 
approved in P.L. 2003, c. 504 
State Share Targets to fund K-12 
education based on EPS model in LD 
1924 
Estimated General Fund 
appropriation needed to fund K-12 
education based on EPS model 
approved in P.L. 2003, c. 504 
Estimated General Fund 
appropriation needed to fund K-12 
education based on LD 1924 
Additional General Fund 
Appropriation required to fund EPS 
model in LD 1924 vs. P.L. 2003, c. 
Base Year 
2003-04* 
2004-05* 
Projections 
2005-06 
Projections 
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% 
1,015,819,375 
1,033,413,982 
1,066,905,558 
1,131,428,894 
1,467,408,432 
1,518,173,106 
1,537,199,970 
1,618,879,5 .. 
49.89% 
47.81% 
49.00% 
49.25% 
49.89% 
47.81% 
52.60% 
52.60% 
753,227,985 
797,298,197 
808,567,184 
851,530,664 
55,339,199 
54,232,466 
* No adjustment in fiscal year 2003-04 and fiscal year 2004-05 
LR2783(2) - Fiscal Note - Page 2 of2