An Act To Implement School Funding Based on Essential Programs and Services
Maine Legislature, Session 121, LD 1623
Committee: Education and Cultural Affairs
Sponsors: DOUGLASS, CUMMINGS, BRENNAN, MITCHELL, ROTUNDO, TURNER, LEMOINE, MILLETT, MILLS
Amends: 20-A MRSA §15670, 20-A MRSA §15671, 5 MRSA §17154, 20-A MRSA §15602, 20-A MRSA §15603, 20-A MRSA §15612

Legislative Document 
No. 1623 
S.P.575 
In Senate, May 22, 2003 
An Act To Implement School Funding Based on Essential Programs 
and Services 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
JOY J. O'BRIEN 
Secretary of the Senate 
Presented by Senator DOUGLASS of Androscoggin. (GOVERNOR'S BILL) 
Cosponsored by Representative CUMMINGS of Portland and 
Senators: BRENNAN of Cumberland, MITCHELL of Penobscot, ROTUNDO of 
Androscoggin, TURNER of Cumberland, Representatives: LEMOINE of Old Orchard Beach, 
MILLETT of Waterford, MILLS of Cornville. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 20-A MRSA c. 606-A, as amended, is repealed. 
Sec. A-2. 20-A MRSA §15670 is enacted to read: 
§15670. 
Short tit1e 
This 
chapter 
may 
be 
known 
and cited as 
"the Essential 
Programs and Services Funding Act." 
Sec. A-3. 20-A MRSA §15671, sub-§7 is enacted to read: 
7. 
TraD§ition; annual targets. 
To achieve the system of 
school funding based on essential programs and services required 
by this section, the following annual targets are established. 
A. 
The 
annual 
targets 
for 
the essential 
programs 
and 
services transition percentage are as follows. 
(1) 
For fiscal year 2005-06, the target is 84%. 
( 2) 
For fiscal year 2006-07, the target is 88%. 
(3) 
For fiscal year 2007-08, the target is 92°-0. 
(4) 
For fiscal year 2008-09, the target is 96%. 
( 5} 
FQr 
fi§~gl yggr 2QQ2-10 ang §YQQeeding yggr§, the 
tgrggt is 1QQ%. 
B. 
Thg annyal targgt§ fQr thg §tgt~ §hgre pgrQentage gre as 
follQw§. 
(l) 
FQr fiscal yggr 2005-Q6, thg target is 44°-0. 
( 2} 
FQr fi§cgl year 20Q6-Q7, the tgrggt is 45°-0. 
(3} 
FQr fi§Qgl yggr 2007-Q8, thg targgt i§ 46%. 
(4} 
FQr fi§Qal yegr 2008-Q9, thg t.grggt is 48%. 
( 5} 
FQr fi§Qgl yggr 2QQ2-1Q gng 
§uc~egging yggr§, the 
tgrggt is 50%. 
Sec. A-4. 20-A MRSA §§15672 to 15687 are enacted to read: 
§15ti72. 
Definit,iQn& 
As 
used 
in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Allocation year. 
"Allocation year" means the year that 
subsidy is distributed to school administrative units. 
2. 
Clerical staff. 
"Clerical staff" means full-time public 
school secretaries, as documented in the department's database. 
3. 
Economically 
disadvantaged 
students. 
"Economically 
disadvantaged students" means students who are included in the 
department's count of students who 
are eligible for free or 
reduced-price meals or free milk or both. 
4. 
Education technician. 
"Education technician" means 
a 
full time 
public 
teacher 
aide 
or 
education 
technician 
I, 
associate teacher or education technician II or assistant teacher 
or 
education 
technician 
III 
but 
not 
a 
special 
education 
technician I, 
II or III, 
as 
documented in the department's 
database. 
5. 
Elementary 
free 
or 
reduced price 
meals 
percentage. 
"Elementary free or reduced-price meals percentage" means the 
percentage, 
as 
determined by the commissioner, 
that reflects 
either: 
A. 
The actual percentage of elementary students in a school 
administrative unit who 
are eligible to receive free or 
reduced-price meals or free milk or both; or 
B. 
The commissioner' s 
estimated percentage of elementary 
students in a school administrative unit who are eligible to 
receive free or reduced-price meals or free milk or both. 
6. 
Elementary 
grades. 
"Elementary 
grades" 
means 
kindergarten to grade 8 and includes children enrolled in early 
kindergarten 
programs 
and 
4-year-old children enrolled in 
a 
2-year childhood education program prior to grade one. 
7. 
Elementary 
school 
level. 
"Elementary 
school 
level" 
means the grades from kindergarten to grade 5 and includes early 
kindergarten programs 
and 2-year childhood education programs 
enrolling 4-year-old children prior to grade one. 
8. 
Essential programs and services. 
"Essential programs 
and 
services" 
means 
those 
educational 
resources 
that 
are 
identified in this chapter that enable a] 1 students to meet the 
standards in the 8 content standard subject areas of the system 
of learning results established in chapter 222. 
9. 
Essential programs and services transition percentage. 
"Essential programs and services transition percentage" means the 
full estimated cost for all essential programs and services for 
that fiscal year that will be funded by a state contribution or 
by a required local contribution. 
10. 
Grade 9 to 12 portion. 
"Grade 9 to 12 portion" means 
those pupils in the secondary grades or high school level. 
11. 
Guidance 
staff. 
"Guidance 
staff" 
means 
full-time 
public guidance 
counselors, 
directors 
of 
guidance 
or 
school 
social workers, as documented in the department's database. 
12. 
Health staff. 
"Health staff" means full-time public 
school nurses, as documented in the department's database. 
13. 
High school level. "High school level" means grade 9 to 
grade 12. 
14. 
Income weight. "Income weight" means a value between 
zero and one that is used to adjust a municipality's ratio of 
local median household income to the statewide median household 
income. 
The income weight plus the property weight. as defined 
in subsection 24, must total one. 
15. 
Kindergarten to grade 8 portion. "Kindergarten to grade 
portion" means those pupils in the elementary grades or a 
combination of the elementary school level and middle school 
level. 
16. 
Kindergarten to grade 
student. 
"Kindergarten to 
grade 
student" 
means 
a 
student 
in 
any 
grade 
from 
prekindergarten to grade 2 who is at least 5 years old on October 
15th of the school year. 
17. 
Librarian. 
"Librarian" 
means 
a 
full-time 
public 
librarian or media specialist, as documented in the department's 
database. 
18. 
Limited English proficiency student. 
"Limited English 
proficiency student" means a student who was not born in the 
United States or whose native language is a language other than 
English and who satisfies the definition of a 
limited English 
proficient student under the federal No Child Left Behind Act of 
2001, 20 United States Code, Chapter 70. 
19. 
Media assistant. 
"Media assistant" means a fUll-time 
public 
librarian 
aide 
or 
library 
technician 
It 
librarian 
assistant or library technician II or librarian associate or 
library 
technician 
III, 
as 
documented 
in 
the 
department's 
database. 
20. 
Middle school level. 
"Middle school level" means grade 
to grade 8. 
21. 
Municipality. 
"Municipality" means 
a 
city, 
town or 
organized plantation. 
22. 
Per pupil guarantee. "Per-pupil guarantee" means the 
total 
amount 
of 
funds 
that 
is 
made 
available 
for 
each 
subsidizable pupil representing the following cost components: 
A. 
Salary and benefit costs for school level teaching staff; 
B. 
Salary and benefit costs for other identified school 
level staff; 
c. 
Designated costs for substitute teachers: and 
D. 
Identified nonstaffing costs. 
23. 
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 and the 
state valuation amount for the most recent year. 
24. 
Property weight. 
"Property 
weight" 
means 
a 
value 
between zero and one that is used to adjust a municipality's 
ratio 
of 
local 
per-pupil 
property 
fiscal 
capacity 
to 
the 
statewide per-pupil property fiscal capacity. The income weight, 
as defined in subsection 14, plus the property weight must total 
25~ 
School administrative staff. 
"School administrative 
staff" means full-time public school principals and assistant 
principals, as documented in the department's database. 
26. 
School administrative unit's local contribution to 
per-pupil 
guarantee. 
"School 
administrative 
unit's 
local 
contribution to the per-pupil guarantee" means the funds that a 
school administrative unit provides for each subsidizable pupil 
who resides in that unit. 
27. 
School 
administrative unit's state contribution to 
per-pupil 
guarantee. 
"School 
administrative 
unit's 
state 
contribution to the per-pupil guarantee" means the funds that the 
State 
provides 
to 
a 
school 
administrative 
unit 
for 
each 
subsidizable pupil who resides in that unit. 
28. 
School level. 
"School level" means elementary level, 
middle school level and high school level. 
29. 
School level teaching staff. 
"Schoo 1 leve 1 teaching 
staff" 
means 
full-time 
public 
classroom 
teachers, 
itinerant 
classroom teachers and special teachers of reading or literacy 
specialists excluding special education teachers and vocational 
education teachers, as documented in the department's database. 
30. 
Seconda~ grades. 
"Secondary grades" means grade 9 to 
grade 12. 
31. 
State share percentage. 
"State share percentage" means 
the percentage of the 
sum of the following 
amounts 
that is 
provided by a state appropriation; 
A. 
Operating 
costs 
total 
allocation, 
as 
described 
in 
section 15683: 
B. 
Program costs allocation, as described in section 15608, 
subsection 2: 
C. 
Allocations 
for 
debt 
service 
costs, 
as 
defined 
in 
section 15603, subsection 8: and 
D. 
Allocations for all adjustments and miscellaneous costs 
authorized pursuant to sections 15612 and 15613. 
32. 
Subsidizable pupils. 
"Subsidizable pupils" means all 
school level pupils who reside in a school administrative unit 
and who are educated at public expense. 
33. 
Year of funding. 
"Year of funding" means the fiscal 
year 
during 
which 
state 
subsidies 
are 
disbursed 
to 
school 
administrative units, 
except 
as 
specified in section 
15005, 
subsection 1. 
§15673. 
Relationship to School Finance Act of 1985 
The provisions of chapter 606 apply except as described in 
this section. 
1. Qperating costs mill rate. The operating costs mill rate, 
as 
described in chapter 
606, 
is in effect for 
the 
limited 
purposes of determining the state and local shares of each school 
administrative unit's 
program 
costs 
allocation 
and 
its debt 
service allocation and for determining the amount reguired to 
provide ~the total state share of the operating allocation under 
this Act. 
For each individual school administrative unit. the 
amounts described in section 15681 are used rather than the 
amounts in section 15608, subsection 1; section 15609, subsection 
1, paragraph A; or section 15610, subsection 1, paragraph A. 
§15674. 
Pupil counts 
1. Pupil counts used for determination of operating costs. 
In addition to the additional weighted counts authorized under 
section 15675 and except as provided in subsection 2, the pupil 
count used for operating costs in this Act is the sum of: 
A. 
The 
average 
number 
of 
secondary 
school-age 
persons 
enrolled in an adult education course counted during the 
most recent calendar year counted pursuant to section 8605, 
subsection 2; 
B. The average number of students in equivalent instruction 
programs during the most recent calendar year, as reported 
pursuant to section 5021, subsection 8; and 
C. The greater of: 
(1) The average of the 2 pupil counts for April 1st and 
October 1st of the most recent calendar year prior to 
the 
year 
of 
funding, 
reported 
in 
accordance 
with 
section 6004, including the counts of students enrolled 
in 
an 
alternative 
program 
made 
in 
accordance 
with 
section 5104-A; and 
(2) The average of the 2 pupil counts for April 1st and 
October 1st of the 2 most recent calendar years prior 
to the year of funding, 
reported in accordance with 
section 6004, including the counts of students enrolled 
in an alternative program and counted in accordance 
with section 5104-A. 
2. 
Exception. 
Notwithstanding subsection L 
paragraph C, 
. the 
pupil 
count 
identified 
in 
subsection 
1, 
paragraph 
C, 
subparagraph (1) must be used for: 
A. 
Elementary school level and middle school level students 
for 
school 
administrative 
units 
that 
send 
all 
their 
elementary school level and middle school level students as 
tuition students to schools elsewhere in the State; 
B. 
High school level students for school administrative 
units that send all their high school level students as 
tuition students to schools elsewhere in the State; and 
c. 
School level students for school administrative units 
that 
send all 
their 
school 
level 
students 
to 
schools 
elsewhere in the State. 
§15675. 
Specialized student populations; additional weights 
For 
the 
purpose 
of 
calculating 
the 
total 
operating 
allocation under this chapter pursuant to section 15683, 
the 
following additional weights must be added to the per-pupil count 
calculated 
under 
section 
15674, 
subsection 
1, 
paragraph 
C, 
subparagraph (1). 
1. 
Limited English proficiency students. 
The additional 
weights 
for 
school administrative units with limited English 
proficiency students are as follows: 
A. 
For 
a 
school administrative unit with 
or 
fewer 
limited English proficiency students, the unit receives an 
additional weight of .50 per student; 
B. 
For a school administrative unit with more than 15 and 
fewer 
than 251 limited English proficiency students, 
the 
unit receives an additional weight of .30 per student; and 
C. For a school administrative unit with 251 or more limited 
English 
proficiency 
students, 
the 
unit 
receives 
an 
additional weight of .60 per student. 
2. 
Economically 
disadvantaged 
students. 
For 
each 
economically disadvantaged student. a school administrative unit 
receives an additional weight of .15. 
The number of economically 
disadvantaged students for each unit is determined by multiplying 
the number of resident pupils in the most recent calendar year by 
the most recent available elementary free or reduced-price meals 
percentage. 
The 
elementary 
free 
or 
reduced-price 
meals 
percentage may be applied to determine the number of economically 
disadvantaged students in the unit's secondary grades. 
3. 
Kindergarten 
to 
grade 
students. 
If 
a 
school 
administrative unit is eligible to receive targeted funds for its 
kindergarten to grade 2 program under section 15681, then for 
each kindergarten to grade 
student, 
the unit receives 
an 
additional weight of .10. 
A. 
For 
purposes 
of 
the 
additional 
weight 
under 
this 
subsection, the count of kindergarten to grade 2 students is 
calculated based on the number of resident pupils in the 
most recent calendar year. 
B. Only school administrative units with a kindergarten to 
grade 2 program approved by the department are eligible for 
funds pursuant to this subsection or other comparable index. 
C. 
Funds 
provided pursuant 
to 
this 
subsection 
may 
be 
expended only on behalf of kindergarten to grade 2 students. 
§15676. 
Per-pupil guarantee 
For each school administrative unit, the commissioner shall 
calculate the unit's per pupil guarantee for each year as the sum 
of: 
1. Teaching staff costs. 
The salary and benefit costs for 
school level teaching staff that are necessary to carry out this 
Act, calculated in accordance with section 15678; 
2. Other staff costs. 
The salary and benefit costs for 
school-level staff who are not teachers, but including substitute 
teachers, 
that are necessary to carry out this Act, calculated 
in accordance with section 15679; and 
3. Additional costs. 
The per-pupil amounts not related to 
staffing, calculated in accordance with section 15680. 
§15671. 
Salary matrix 
1. Salary matrix defined. 
For purposes of this section, 
"salary matrix" means 
the relationships on a 
statewide basis 
between average staff salaries and: 
A. 
Years of staff experience; and 
B. 
Levels of staff education. 
2. 
Determination of matrix. 
The salary matrix must be 
determined in accordance with the following. 
A. 
For 
fiscal 
year 
2005 06, 
the 
commissioner, 
using 
information 
provided 
by 
a 
statewide 
education 
policy 
research institute, shall establish the salary matrix based 
on the most recently available relevant data and appropriate 
trends in the Consumer Price Index or other comparable index. 
B. 
For fiscal year 2006 07 
and each subsequent year, the 
commissioner shall update the previous year's salary matrix 
to reflect appropriate trends in the Consumer Price Index or 
other comparable index. 
§15678. 
Calculation of salary and benefit costs; school level 
teaching staff 
1. 
Salary 
and 
benefit costs: 
teaching positions. 
The 
commissioner 
shall 
annually 
determine, 
for 
each 
school 
administrative unit, the salary and benefit costs of all school 
level teaching positions that are necessary to carry out this Act. 
2. 
Ratios. 
In calculating the salary and benefit costs 
pursuant to this section, 
the commissioner shall utilize the 
following student-to-teacher ratios. 
A. 
For the elementary school level, the student-to-teacher 
ratio is 17:1. 
B. For the middle school level, the student-to-teacher ratio 
is 16:1. 
C. 
For the high school level, the student-to-teacher ratio 
is 15:1. 
3. 
Number of teaching positions required. 
The commissioner 
shall identify for each school administrative unit, using the 
pupil 
count 
arrived at 
under 
section 
15674, 
subsection 
1, 
paragraph 
C, 
subparagraph 
(1), 
the 
number 
of 
school 
level 
teaching positions that are required in order to achieve the 
student-to-teacher ratios set forth in subsection 2. 
4. Estimated salary costs. 
The commissioner shall determine 
the estimated salary cost for the number of school level teaching 
positions required under subsection 3. 
In order to calculate 
this 
amount, 
the 
commissioner 
shall 
use 
the 
salary 
matrix 
pursuant to section 15677 for all school level teaching positions 
in each category. 
5. 
Total salary and benefit costs for school level teaching 
staff. 
The total salary and benefit costs for 
school level 
teaching staff are equal to the sum of: 
A. 
The amount identified pursuant to subsection 4; and 
B. 
The 
amount, 
as 
determined by 
the 
commissioner, 
that 
equals 
the 
statewide 
percentage 
of 
salary 
costs 
that 
represents the statewide benefit costs. 
§15679. 
Calculation of salary and benefit costs: other 
school level staff 
1. 
Salary and benefit costs: other school level positions. 
The 
commissioner 
shall 
annually 
determine, 
for 
each 
school 
administrative unit, the salary and benefit costs of all school 
level positions other than teaching positions, referred to in 
this section as "staff," that are necessary to carry out this Act. 
2. 
Students to staff ratios. 
In calculating the salary and 
benefi t 
costs pursuant to this section, the commissioner shall 
utilize the following student-to-staff ratios. 
A. 
For the elementary school level and the middle school 
level: 
(1) The student-to-education technician ratio is 100:1; 
( 2) The student-to-guidance staff ratio is 350:1; 
( 3 ) The student-to-librarian ratio is 800:1; 
(4} The student-to-media assistant ratio is 500:1; 
(5} The student-to-health staff ratio is 800:1; 
(6} The student-to-school administrative staff ratio is 
305:1; and 
(7} The student-to-clerica1 staff ratio is 200:1. 
B. For the high school level: 
(I} The student-to-education technician ratio is 250:1; 
(2} The student-to-guidance staff ratio is 250:1; 
(3} The student-to-librarian ratio is 800:1; 
(4) The student-to-media assistant ratio is 500:1; 
(5} The student-to-health staff ratio is 800:1; 
(6) The student-to-school administrative staff ratio is 
315:1; and 
(7} The student-to-clerical staff ratio is 200:1. 
3. 
Humber of staff positions required. 
The commissioner 
shall identify for each school administrative unit, using the 
pupil 
count 
arrived 
at 
under 
section 
15674, 
subsection 
1, 
paragraph C, subparagraph (I}, the number of staff positions that 
are required in order to achieve the student to staff ratios set 
forth in subsection 2. 
4. 
Estimated 
salan 
costs. 
The 
commissioner 
shall 
determine the estimated salary costs for the number of staff 
positions required under subsection 3. 
In order to calculate 
this amount. the commissioner, where appropriate, shall use the 
salary matrix pursuant to section 15677 for all staff positions 
in each catego~ 
5. Salan costs for substitute teachers. 
The commissioner 
shall 
calculate 
the 
additional 
salary 
costs 
for 
substitute 
teachers for each school administrative unit using the pupil 
count arrived at under section 15674, subsection 1, paragraph C, 
subparagraph 
(1). 
In 
order 
to 
calculate 
this 
amount, 
the 
commissioner shall establish a per-pupil rate for the cost of a 
substitute teacher for 1/2 day. 
6. Total salan and benefit costs for staff. 
The total 
salary and benefit costs for staff is equal to the sum of: 
A. 
The 
estimated 
salary 
costs 
determined 
pursuant 
to 
subsection 4: 
B. 
The 
amount, 
as determined by the commissioner, 
that 
equals the statewide percentage of estimated salary costs 
determined pursuant to subsection 4 
that represents the 
statewide benefit costs: and 
C. The substitute teacher salary costs determined pursuant 
to subsection 5. 
§15680. 
Per-pupil amounts not related to staffing 
1. 
Additional 
cost 
components. 
The 
commissioner 
shall 
calculate one set of per-pupil amounts for each of the following 
cost categories to be applied to the elementary school level and 
middle school level and shall calculate another set of per-pupil 
amounts for each of the following cost categories to be applied 
to the high school level: 
A. System administration. 
The per-pupil amount for "system 
administration" 
is 
the 
actual 
system 
administration 
expenditures, as defined in the State's accounting handbook 
for local school systems, for the most recent year available 
excluding expenditures for leases and the purchase of land 
and buildings, less revenues to system administration for 
services to other governments and refunds from a statewide 
school 
management 
association, 
divided 
by 
the 
average 
October and April enrollment counts for that fiscal year and 
then inflated to an estimated allocation year level by a 
la-year average increase in the Consumer Price Index or 
other comparable index: 
Page ll-LR2l24(l) 
B. Operation and maintenance of plant. 
The per-pupil amount 
for 
"operation and maintenance of plant" is the 
actual 
operation and maintenance of plant expenditures, as defined 
in the State's accounting handbook for local school systems, 
for the most recent year available excluding expenditures 
for leases and the purchase of land and buildings, divided 
by the average October and April enrollment counts for that 
fiscal year and then inflated to an estimated allocation 
year level by a 
10-year average increase in the Consumer 
Price Index or other comparable index: 
C. Supplies and eguipmentj 
D. Cocurricular and extracurricular activities: 
E. Professional developmentj and 
F. Instructional leadership support. 
2. 
Fiscal year 
2005-06. 
For 
fiscal 
year 
2005-06, 
the 
commissioner shall submit the per-pupil amounts for additional 
cost 
components 
under 
subsection 
to 
the 
state 
board 
for 
approval. 
3. Fiscal year 2006-07 and beyond. 
For fiscal year 2006-07 
and for each subsequent year, the commissioner shall recalculate 
the 
per-pupil 
amounts 
for 
additional 
cost 
components 
under 
subsection 1 using the amounts approved by the state board under 
subsection 2 as a base and appropriate trends in the Consumer 
Price Index or other comparable index. 
4. Review; approval. 
Beginning in fiscal year 2008-09, and 
at least every 
years 
thereafter, 
the 
commissioner, 
using 
information provided by 
a 
statewide education policy research 
institute, 
shall 
review 
the 
essential 
programs 
and 
services 
components 
under 
this 
Act 
and 
shall 
submit 
any 
recommended 
changes to the state board for approval. 
§15681. 
Targeted funds 
1. 
Eligibility. 
In order for a school administrative unit 
to 
receive 
targeted 
funds 
under 
this 
section, 
the 
school 
administrative unit must meet the following eligibility criteria. 
A. 
To receive targeted student assessment funds calculated 
pursuant to subsection 2, a school administrative unit must 
be 
in 
compliance 
with 
applicable 
state 
statutes 
and 
department rules regarding local assessment systems for the 
system of learning results established in section 6209 and 
be 
in 
compliance 
with 
applicable 
federal 
statutes 
and 
regulations pertaining to student assessment as required by 
the federal No Child Left Behind Act of 2001, 
United 
States Code, Chapter 70. 
B. To receive targeted technology resource funds calculated 
pursuant to subsection 3, a school administrative unit must 
be 
in compliance with the 
technology 
components 
of the 
unit's 
comprehensive 
education 
plan 
as 
required 
under 
section 4502, subsection 1. 
C. 
To 
receive 
targeted 
kindergarten 
to 
grade 
funds 
calculated 
pursuant 
to 
subsection 
4, 
the 
school 
administrative 
unit 
must 
be 
in 
compliance 
with 
any 
applicable reporting requirements for local early childhood 
programs. 
2. Targeted student assessment funds. 
For targeted student 
assessment funds, 
the commissioner shall calculate one amount 
that may be made available to the elementary school level and 
middle school level and another amount that may be made available 
to the high school level in accordance with the following. 
A. For fiscal year 2005-06, the commissioner shall establish 
a per-pupil amount for targeted student assessment funds. 
B. 
For fiscal year 2006-07 and each subsequent year, the 
commissioner shall recalculate the per-pupil amount by using 
the 
amount calculated under 
paragraph 
A as 
a 
base 
and 
appropriate trends in the Consumer Price Index or other 
comparable index. 
3. 
Targeted 
technology 
resource 
funds. 
For 
targeted 
technology resource funds, the commissioner shall calculate one 
amount that may be made available to the elementary school level 
and middle school level and another amount that may be made 
available 
to 
the 
high 
school 
level 
in 
accordance 
with 
the 
following. 
A. For fiscal year 2005-06, the commissioner shall establish 
a per-pupil amount for targeted technology resource funds. 
B. 
For fiscal year 2006-07 and each subsequent year, the 
commissioner shall recalculate the per-pupil amount by using 
the 
amount calculated under 
paragraph 
A as 
a 
base 
and 
~opriate trends in the Consumer Price Index or other 
comparable index. 
4. Kindergarten to grade 2 funds. 
For targeted kindergarten 
to grade 2 funds, the commissioner shall calculate the amount 
that may be made available to eligible school administrative 
units as follows. 
A. For fiscal year 2005-06, the amount equals the product of 
the per-pupil guarantee calculated pursuant to section 15676 
multiplied by the additional weight calculated pursuant to 
section 15675, subsection 3. 
B. 
For fiscal year 2006-07 and each subsequent year, the 
commissioner 
shall 
recalculate 
the 
amount 
by 
using 
the 
amount 
calculated 
under 
2aragra2h 
A 
as 
a 
base 
and 
appropriate trends in the Consumer Price Index or other 
comparable index. 
5. 
Review; approval. 
Beginning in fiscal year 2008-09, and 
at least every 
years 
thereafter, 
the 
commissioner, 
using 
information provided by a 
statewide education policy research 
institute, shall review the targeted amounts under this section 
and shall submit any recommended changes to the state board for 
approval. 
§15682. 
Regional adjustment 
The commissioner shall make 
a regional adjustment in the 
total operating allocation for each school administrative unit 
determined pursuant to section 15683. 
The regional adjustment 
must be based on the regional differences in teacher salary costs 
within . labor 
market 
areas 
in 
the 
State, 
as 
computed 
by 
a 
statewide 
education 
policy 
research 
institute, 
and 
must 
be 
applied only to appropriate teacher salary and benefits costs as 
calculated 
under 
section 
15678. 
Beginning 
in 
fiscal 
year 
2008-09, and at least every 3 years thereafter, the commissioner, 
using 
information 
provided 
by 
a 
statewide 
education 
policy 
research institute, shall review the regional adjustment amounts 
under this section and shall submit any recommended changes to 
the state board for approval. 
§15683. 
Total operating allocation 
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. 
1. 
Base total. 
The base total of a school administrative 
unit's total operating allocation is the sum of: 
A. 
The 
product 
of 
the 
school 
administrative 
unit's 
kindergarten to grade 8 per-pupil guarantee multiplied by 
the total of the kindergarten to grade 8 portions of the 
following pupil counts: 
(1) 
The 
pupil 
count 
set 
forth 
in 
section 
15674, 
subsection 1, paragraph Cj 
(2) 
The 
additional 
weight 
for 
limited 
English 
proficiency students 
calculated pursuant 
to 
section 
15675, subsection 1; and 
(3) 
The 
additional 
weight 
for 
economically 
disadvantaged students calculated pursuant to section 
15675, subsection 2; 
B. The product of the school administrative unit I s grade 9 
to 12 per-pupil guarantee multiplied by the total of the 
grade 9 to 12 portion of the following pupil counts: 
(1) 
The 
pupil 
count 
set 
forth 
in 
section 
15674, 
subsection 1, paragraphs A, Band C: 
(2) 
The 
additional 
weight 
for 
limited 
English 
proficiency 
students 
calculated pursuant 
to 
section 
15675, subsection 1; and 
(3) 
The 
additional 
weight 
for 
economically 
disadvantaged students calculated pursuant to section 
15675, subsection 2; 
C. 
If 
the 
school 
administrative 
unit 
is 
eligible 
for 
targeted student assessment funds pursuant to section 15681, 
subsection 1, the sum of: 
(1) 
The product of the elementary school level and 
middle 
school 
level 
per-pupil 
amount 
for 
targeted 
student assessment funds calculated pursuant to section 
15681, subsection 2 multiplied by the kindergarten to 
grade 8 portion of the pupil count calculated pursuant 
to 
section 
15674, 
subsection 
1, 
paragraph 
C, 
subparagraph (1): and 
(2) 
The product of the high school level per-pupil 
amount for targeted student assessment funds calculated 
pursuant to section 15681, subsection 2 multiplied by 
the grade 9 to 12 portion of the pupil count calculated 
pursuant to section 15674, subsection 1, paragraph C, 
subparagraph (1); 
D. 
If 
the 
school 
administrative 
unit 
is eligible 
for 
targeted 
technology 
resource 
funds 
pursuant 
to 
section 
15681, subsection 1, the sum of: 
( I} 
The product of the elementary school level 
and 
middle 
school 
level 
per-pupil 
amount 
for 
targeted 
technology 
resource 
funds 
calculated 
pursuant 
to 
section 
15681, 
subsection 
multiplied 
by 
the 
kindergarten to grade 
portion of the pupil count 
calculated pursuant to section 15674, 
subsection 1, 
paragraph C, subparagraph (I); and 
(2) 
The product of the high school level per-pupil 
amount 
for 
targeted 
technology 
resource 
funds 
calculated pursuant 
of 
section 
15681, 
subsection 
multiplied by the grade 9 to 12 portion of the pupil 
count calculated pursuant to section 15674, subsection 
1, paragraph C, subparagraph (1); and 
E. 
If 
the 
school 
administrative unit is eligible 
for 
targeted kindergarten to grade 2 funds pursuant to section 
15681, subsection 1, the product of the per-pupil guarantee 
multiplied by the additional weight for 
kindergarten to 
grade 2 calculated pursuant to section 15675, subsection 3. 
2. 
Adjustments. 
The 
base total calculated pursuant 
to 
subsection 1 must be adjusted as follows. 
A. 
The base total calculated pursuant to subsection 1 must 
be reduced by the amount of all funds received by the school 
administrative unit under Title I of the federal Elementary 
and Secondary Education Act of 1965, 20 United States Code, 
Section 6301 et seq. during the most recent fiscal year. 
B. 
The amount calculated pursuant to paragraph A must be 
adjusted by 
the 
regional 
adjustment pursuant to section 
15682. 
C. 
The amount calculated pursuant to paragraph B must be 
multiplied by the essential programs and services transition 
percentage 
for 
the 
appropriate 
year 
in accordance 
with 
section 15671, subsection 7, paragraph A. 
§15684. 
School administrative unit contributions to total 
operating allocation 
1. 
School administrative unit's local share percentage. 
For 
each 
school 
administrative unit, 
the 
commissioner 
shall 
annually determine the unit's local share percentage of its total 
operating allocation. 
A. 
Except as provided 
~n paragraph B, 
the local share 
percentage of the total operating allocation is the product 
of: 
(1) 
The school administrative unit's weighted relative 
~rty fiscal capacity, determined in accordance with 
section 15685; and 
(2) 
A statewide adjustment factor to be established 
annually by the commissioner. 
B 
Notwithstanding paragraph A, the local share percentage 
for a school administrative district or a community school 
district is calculated as a weighted average of the local 
share percentages of each member municipality as if each 
member municipality were 
a 
separate school administrative 
unit. 
The weight for each municipality is the proportion of 
the 
district's 
subsidizable 
pupils 
who 
reside 
in 
the 
muni cipali ty. 
c. 
The local share percentage for a school administrative 
unit in a 
school administrative district or 
a 
community 
school district may not exceed 100%. 
If the local share 
percentage calculation is performed for a municipality in 
accordance with paragraph B, then the local share percentage 
for the municipality may not exceed 100%. 
2. 
School 
administrative unit; 
contribution. 
For 
each 
school 
administrative 
unit, 
the 
commissioner 
shall 
annually 
determine 
the 
school 
administrative 
unit's 
contribution 
in 
accordance with the following. 
A. 
The school administrative unit's local contribution to 
the total operating allocation is the product of the amount 
calculated pursuant 
to 
section 
15683 
multiplied 
by 
the 
school administrative unit's local share percentage of the 
total operating allocation calculated pursuant to subsection 
h 
B. 
The school administrative unit's state contribution to 
the total operating allocation is the 
amount calculated 
pursuant to section 15683 less the school administrative 
unit's local contribution to the total operating allocation 
calculated pursuant to paragraph A. 
§15685. 
Weighted relative property fiscal capacity 
For each school administrative unit, the commissioner shall 
annually determine the unit's weighted relative property fiscal 
capacity. 
This determination is the result of the following 
steps. 
1. 
Fiscal capacity. 
The local per-pupil property fiscal 
capacity divided 
by 
the 
statewide 
per-pupil 
property fiscal 
capacity as 
computed by the commissioner is multiplied by 
a 
property weight of 0.85. 
2. 
Local 
median 
household 
income. 
The 
local 
median 
household 
income is divided by the 
statewide average median 
household income. 
The final result is multiplied by an income 
weight of 0.15. 
The 
department shall use local median household 
income data as estimated at the fiscal year 1997-98 level until 
final Federal Decennial Census figures are established for the 
year 2000. 
The fiscal year 1997-98 estimated census figures must 
be adjusted so that no municipality's census figure exceeds twice 
the state average percentage increase from fiscal year 1996 97 to 
fiscal year 1997-98. 
3. 
Weighted relative property fiscal capacity. 
The results 
of subsection 1 and subsection 2 are added and the Sum represents 
the weighted relative property fiscal capacity. 
§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 fiscal 
impact directly 
related to 
the 
phase in of 
this 
Act. 
The 
amount 
of 
this 
adjustment must decline with each successive fiscal year, and the 
adjustments must end no later than fiscal year 2009-10. 
§15687. 
Rules 
The commissioner shall adopt rules to implement this Act. 
Rules adopted pursuant to this section are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. A-5. Review of data. 
By October 1, 2006, the Commissioner 
of Education, in consultation with the Maine Education Policy 
Research 
Institute, 
shall 
review 
data 
on 
limited 
English 
proficiency students, including the number of students in the 
State qualifying for limited English proficiency status and the 
costs attributable to English as a 2nd language programs. 
The 
commissioner shall submit the results of this review to the State 
Board of Education. 
PARTB 
Sec. B-1. 5 MRSA §17154, sub-§6, lIE, as repealed and replaced 
by PL 1995, c. 471, §2, is amended to read: 
E. 
Notwithstanding this section, the employer retirement 
costs related to the retirement system applicable to those 
teachers 
whose 
funding 
is 
provided directly or 
through 
reimbursement from private pr public grants must be paid by 
local school systems from those funds. 
"Public grants" does 
not 
include 
state 
or 
local 
funds 
provided 
to 
school 
administrative units under Title 20-A, chapters 315 aHeL 606 
and 606-B. 
Sec. B-2. 20-A MRSA §15602, sub-§l, as amended by PL 1985, c. 
505, §12, is further amended to read: 
1. 
Contributions from General Fund. 
It is the intent of 
the Legislature to provide at least 55% of the cost of the total 
allocation from General Fund revenue sources or a percentage no 
less 
than that provided 
in 
the 
year prior 
to 
the 
year 
of 
allocation, whichever is greater. 
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Sec. B-3. 20-A MRSA §15602, sub-§4, as enacted by PL 1989, c. 
875, Pt. E, §27, is repealed. 
Sec. B-4. 20-A MRSA § 15602, sub-§5, as enac ted by PL 1991, c. 
528, Pt. I, §7 and affected by Pt. RRR and enacted by c. 591, Pt. 
I, §7, is repealed. 
Sec. B-5. 20-A MRSA § 15602, sub-§6, as enac ted by PL 1991, c. 
625, §1 and affected by §5, is repealed. 
Sec. B-6. 20-A MRSA §15602, sub-§7, as renumbered by RR 1991, 
c. 2, §70, is repealed. 
Sec. B-7. 20-A MRSA §15602, sub-§8, as enacted by PL 1993, c. 
410, Pt. F, §5, is repealed. 
Sec. B-8. 20-A MRSA §15602, sub-§9, as enacted by PL 1993, c. 
684, §3, is repealed. 
Sec. B-9. 20-A MRSA §15602, sub-§10, as enacted by PL 1995, c. 
368, Pt. Y, §1, is repealed. 
Sec. B-I0. 20-A MRS A §15602, sub-§II, as enacted by PL 1997, 
c. 469, §1, is repealed. 
Sec. B-11. 20-A MRSA §15602, sub-§12, as enacted by PL 1997, 
c. 643, Pt. D, §1, is repealed. 
Sec. B-12. 20-A MRSA § 15602, sub-§ 13, as enac ted by PL 1999, 
c. 401, Pt. GG, §1, is repealed. 
Sec. B-13. 20-A MRSA §15602, sub-§14, as enacted by PL 1999, 
c. 731, Pt. D, §1, is repealed. 
Sec. B-14. 20-A MRSA §15602, sub-§§15 and 15-A, as enacted by 
PL 2001, c. 358, Pt. U, §1, are repealed. 
Sec. B-15. 20-A MRSA §15602, sub-§16, as enacted by PL 2001, 
c. 559, Pt. D, §1, is repealed. 
Sec. B-16. 20-A MRSA §15603, sub-§28-A, as enacted by PL 1999, 
c. 401, Pt. JJ, §1, is repealed. 
Sec. B-17. 20-A MRS A §15612, sub-§1, as enacted by PL 1983, c. 
859, Pt. G, §§2 and 4, is repealed. 
Sec. B-18. 20-A MRSA §15612, sub-§5, as amended by PL 1995, c. 
303, §1, is repealed. 
Sec. B-19. 20-A MRS A §15612, sub-§6, as amended by PL 1989, c. 
554, §1, is repealed. 
Sec. B-20. 20-A MRSA §15612, sub-§8, as enacted by PL 1983, c. 
859, Pt. K, §§6 and 7, is repealed. 
Sec. B-21. 20-A MRSA §15612, sub-§12, as amended by PL 1989, 
c. 875, Pt. E, §31, is repealed. 
Sec. B-22. 20-A MRSA §15612, sub-§12-A, as enacted by PL 1999, 
c. 401, Pt. JJ, §2, is repealed. 
Sec. B-23. 20-A MRSA §15612, sub-§13, as amended by PL 1999, 
c. 401, Pt. JJ, §3, is further amended to read: 
13. 
Adjustment 1imitations. 
The amounts of the adjustments 
paid 
to 
school 
administrative 
units 
or 
municipalities 
in 
subsections lT 2, 4, 9T 7, lOT and llT-1J-aaa-lJ-A are limited to 
the amounts appropriated by the Legislature for these adjustments. 
Sec. B-24. 20-A MRSA §15612, sub-§14, as enacted by PL 1991, 
c. 625, §3 and affected by §5, is repealed. 
Sec. B-25. Revisor's review; . cross-references. 
The 
Revisor of 
Statutes shall review the Maine Revised Statutes and include in 
the errors 
and inconsistencies bill submitted to the 
Second 
Regular 
section 
Session 
any 
cross-references 
this Act. 
of the l2lst Legislature pursuant to Title 1, 
sections necessary to correct and update 
any 
in the statutes to provisions of law repealed in 
SUMMARY 
Part A of this bill repeals the School Finance Act of 1995 
and establishes in its stead the Essential Programs and Services 
Funding Act. 
Specifically, Part A of this bill proposes to accomplish the 
following. 
1. 
It establishes targets for a transition to a new school 
funding approach, based on essential programs and services, in 
order to provide all children with an equitable opportunity to 
access the resources necessary to achieve the high standards of 
Maine's system of learning results. 
2. 
It defines 
the 
elements 
of 
essential 
programs 
and 
services in order to: 
A. 
Determine the resources necessary for all students in 
each school administrative unit; 
B. 
Establish 
the 
methodology 
to 
calculate 
per-pupil 
guarantees unique to each school administrative unit based 
on each unit's personnel profile for years of experience and 
education level; 
c. 
Address providing addi tional resources for specialized 
student populations; 
D. 
Define the major cost components; 
E. 
Provide for targeted funds; 
F. 
Provide for an annual updating of the components; and 
G. 
Establish that a review of the essential programs and 
services components occurs every 3 years. 
3. 
It provides for a transition adjustment to minimize the 
fiscal impact directly related to the phase-in of this Act. 
4. 
It incorporates 
the statutory language 
necessary to 
maintain the current distribution method for operating allocation 
that was established in the School Finance Act of 1995. 
5. 
It establishes targets for a transition to an increased 
state share percentage. 
Part B of this bill makes technical changes and corrects 
cross-references necessitated by Part A.