An Act To Provide for Full State Funding for Special Education Costs
Maine Legislature, Session 121, LD 1303
Committee: Education and Cultural Affairs
Sponsors: LEMOINE, STANLEY, LERMAN

Legislative Document 
No. 1303 
H.P.957 
House of Representatives, March 11,2003 
An Act To Provide for Full State Funding for Special Education 
Costs 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
17/~ 
1/7. 7l!tJ£~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative LEMOINE of Old Orchard Beach. 
Cosponsored by Senator STANLEY of Penobscot and 
Representative: LERMAN of Augusta. 
Printed on n:cycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20·A MRSA §15603, sub·§26·A, ,F, as 
amended by PL 
1999, c. 401, Pt. GG, §2, is further amended to read: 
F. 
If for any fiscal year the total amount appropriated for 
the State I s share of the total allocation is less than the 
amount specified in the certified funding level for that 
year, 
then 
all 
subsidizable 
costs 
except 
as 
noted 
in 
subparagraphs 
(1) 
aBaL 
(2) 
and 
(3) 
are 
reduced 
by 
a 
percentage of the original cost amounts. 
The 
reduction 
percentage is the smallest percentage that results in a 
state share of the total allocation that does not exceed the 
amount 
appropriated 
for 
this 
purpose, 
except 
that 
the 
reduction percentage 
that 
would ordinarily be 
used 
for 
operating and program costs must be reduced for the purpose 
of 
computing 
state 
subsidy 
for 
transportation operating 
costs 
as 
defined 
in 
subsection 
29. 
Until 
fiscal 
year 
2000-01, 
the 
reduction 
percentage 
ordinarily 
used 
for 
transportation operating costs must be reduced by the amount 
necessary 
to 
provide 
additional 
state 
subsidy 
equal 
to 
$4,500,000 
for 
this 
category 
of 
costs. 
The 
statewide 
adjustment 
factor 
under 
section 
15654, 
subsection 
1, 
paragraph B must be adjusted by an amount sufficient to 
provide 
this 
additional 
funding 
for 
program 
costs. 
Beginning in fiscal year 1999-00, the reduction percentage 
must be phased out over 4 years. 
In fiscal year 1999-00, 
the 
reduction 
percentage 
for 
program 
costs 
other 
than 
transportation operating costs must be 15. 88q,o. 
It is the 
intent of the Legislature that the reduction percentage for 
all program costs and the insured value factor be lowered to 
9.97% 
in fiscal year 
2000-01, 
to 
4.98% 
in fiscal 
year 
2001-02 
and to 
0% 
in fiscal year 2002-03. 
Beginning in 
fiscal year 2000-01, if the appropriation and any increase 
in the mill rate determined by the Legislature to be needed 
under section 15653 are not sufficient to achieve both the 
targeted reduction percentage and the targeted per pupil 
guarantee, as defined in section 15653, then the per pupil 
guarantee 
must 
advance 
toward 
the 
targeted 
per 
pupil 
guarantee 
in 
the 
same 
proportion 
as 
the 
reduction 
percentage, as defined in this section, is lowered toward 
the 
targeted 
reduction 
percentage. 
The 
following 
subsidizable costs may not be reduced: 
(1) 
Principal 
and 
interest 
on 
approved 
school 
construction costs; aBa 
(2) 
Approved lease coStST; and 
(3) 
Special education costs as defined in subsection 
Page l-LROI06(1) 
• 
Sec. 2. 20-A MRS A §15612, sub-§6, as amended by PL 1989, c. 
554, §1, is repealed and the following enacted in its place: 
6. 
Special 
education 
adjustment; 
local 
authorization. 
Beginning in fiscal year 2003 04 and notwithstanding any other 
provision of this chapter or chapter 
606-A, 
the commissioner 
shall adjust each school administrative unit's state share of 
state subsidy to include an amount egual to the unit's actual 
special education costs 
for 
the year prior to 
the year 
of 
allocation. 
For the purposes of this subsection, 
the unit's 
actual special education costs include 100% of the costs defined 
in subsection 11; section 15603, subsection 22; section 15607, 
subsection 3, paragraph A, subparagraphs (1) and (2); and section 
15613, 
subsection 
5. 
School 
boards 
may 
expend 
the 
funds 
allocated without seeking approval from their legislative bodies. 
Sec. 
3. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 
Initiative: 
Provides funds to fully fund 100°1> of actual local 
special education costs. 
General Fund 
All Other 
General Fund Total 
SUMMARY 
2003-04 
$244,758,578 
$244,758,578 
2004-05 
$251, 367,160 
$251,367,160 
This bill provides that the general purpose aid for local 
schools program would provide state subsidy for 
100% of the 
actual 
special 
education 
costs 
incurred 
by 
each 
school 
administrative 
unit 
in 
the 
State. 
Under 
this 
bill, 
the 
Commissioner 
of 
Education is required to adjust each 
school 
administrative unit's state share of state subsidy to include an 
amount that equals 100% of the unit's actual special education 
costs, including the unit's personnel costs, to provide special 
education services and special education costs for state wards, 
state agency clients and out-of-district placements. 
The bill 
also provides an additional amount of General Fund appropriations 
for the general purpose aid for local schools program to fully 
fund the local share of actual local special education costs.