An Act To Establish a New School Funding Formula
Maine Legislature, Session 121, LD 0850
Committee: Education and Cultural Affairs
Sponsors: McKENNEY, COLLINS, MURPHY

Legislative Document 
No. 850 
H.P.627 
House of Representatives, February 20, 2003 
An Act To Establish a New School Funding Formula 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Representative McKENNEY of Cumberland. 
/Jf~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: COLLINS of Wells, MURPHY of Kennebunk. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as foUows: 
Sec. 1. 20·A MRS A cc. 606 and 606·A. as amended, are repe al ed. 
Sec. 2. 20·A MRS A c. 606·B is repealed. 
Sec.3. 20·A MRSA c. 606·C is enacted to read: 
CHAPTER 606-C 
SCHOOL FINANCE ACT OF 2003 
§1568l. 
Short title 
This chapter is known 
and may 
be cited as 
"the School 
Finance Act of 2003." 
§15682. 
General purpose aid to local schools 
1. 
Contributions from the state General Fund. 
Prior to 
February 15th of each year, the Legislature shall determine the 
amount of general purpose aid that the State shall provide tQ 
school administrative units in the State to subsidize the costs 
of providing kindergarten to grade 12 public education. 
2. 
Per pupil allocation. 
Prior to March 1st of each year, 
the Legislature shall determine the per pupil allocation amount 
that the State shall provide to each student in the State, 
regardless of where the student resides. 
3. 
Pupil counts. 
The pupil count used for each school 
administrative unit's calculation is the sum of the average of 
the April 1st and October 1st counts in the most recent calendar 
year of all resident elementary and secondary pupils of the unit. 
4. 
General purpose aid computations. 
The amount of general 
purpose aid allocated to a local school administrative unit is 
equal to the per pupil allocation amount multiplied by the pupil 
count. 
§15683. 
Authorization and SChedules of payment of state general 
purpose aid: appeals: limitations 
1. 
Schedules 
of 
payment 
of 
unit 
allocation. 
The 
commissioner shall authorize state general purpose aid payments 
to the school administrative units to be made in accordance with 
time schedules set forth in section 15005, sections 15901 to 
15910 and Title 20, sections 3457 to 3460. 
Page l-LR0228(1) 
2. 
Notification 
of 
allocation; 
commissioner's 
duty~ 
superintendent's duty. 
The 
following provisions apply to th9 
commissioner's 
and 
each 
superintendent's 
duties 
regardin~ 
notification of allocation. 
A. 
The commissioner shall annually, prior to March 1st, 
notify each school board of the amount allocated to the 
school administr.ative unit. 
B. 
Each 
superintendent 
shall 
report 
to 
the 
municipal 
officers whenever the school administrative unit is notifi9d 
of the allocation or a 
change is made in the allocation 
resulting from an adjustment. 
3. 
PQyments of state subsidy to unit's treasurer. 
The 
commissioner 
shall 
make 
subsidy 
payments 
directly 
to 
the 
treasurer of each school administrative unit. 
4. 
Appeals. 
A school board may appeal the computation of 
state subsidy for the school administrative unit to the state 
board in writing within 30 days of the date of notification of 
the computed amount. The state board shall review the appeal and 
make 
an 
adjustment 
if, 
in 
its 
judgment, 
an 
adjustment 
is 
justified. 
The 
state board's decision is final 
as 
to 
facts 
supported by the record of the appeal. 
5. 
School purpose expense requirement. 
Notwithstanding any 
other law, money allocated for school purposes must be expended 
only for school purposes. 
6. 
Balance of allocations. 
Notwithstanding any other law, 
general 
operating 
fund 
balances 
at 
the 
end 
of 
a 
school 
administrative unit's fiscal year must be carried forward to meet 
the next year's school needs. 
Unallocated balances in excess of 
3°" of the previous year's school budget must be used to reduce 
the state and local allocations for the purpose of computing 
state subsidy. 
School boards have the discretion of carrying 
forward unallocated balances in excess of 
0b 
of the previous 
year's school budget and disbursing these funds in the next year 
or over a period not to exceed 3 years. 
Sec. 4. 
Statutes review; cross-references. 
The 
Department 
of 
Education shall review the Maine Revised Statutes and submit a 
bill to the Second Regular Session of the l21st Legislature to 
correct 
and 
update 
any 
cross-reference 
in 
the 
statutes 
to 
provisions of law repealed in this Act. 
SUMMARY 
This bill repeals the Maine Revised Statutes. Title 20-A. 
chapter 606, the School Finance Act of 1985; Title 20-A, chapter 
606-A, the School Finance Act of 1995; and Title 20-A, chapter 
606-B, Essential Programs and Services. 
The bill provides that 
the 
general 
purpose 
aid 
to 
local 
schools 
program 
would 
be 
recreated to provide a certain amount of state subsidy to each 
pupil in the State regardless of where the pupil resides or 
attends school.