An Act to Further the Implementation of the Essential Programs and Services Funding Model Fiscal Detail and Notes
Maine Legislature, Session 122, LD 1766
Committee Amendment CA_B_S567 (Senate)
Amends: 20-A MRSA §15672, 20-A MRSA §15675, 20-A MRSA §15680, 20-A MRSA §15681, 20-A MRSA §15681-A, 20-A MRSA §15686, 20-A MRSA §15689

COMMITTEE AMENDMENT "8,, to. S.P. 683, L.D. 1766, Bill, 
Act To Further the Implementation of the Essential Programs 
Services Funding Model" 
Amend the bill by inserting after section 1 the following: 
. Sec. 2. 20-A MRSA §15672, sub-§2-B is enacted to read: 
"An 
and 
2-B. 
Debt 
service 
adjustment mill 
rate. 
"Debt 
service 
adjustment mill rate" is the mill rate derived by dividing 45'\ of 
the debt service costs by the property fiscal capacity for all 
school administrative units. 
Sec. 3. 20-A MRSA §15672, sub-§22-A, as enacted by PL 2005, c. 
2, Pt. D, §36 and affected by §§72 and 74 and. c. 12, Pt. WW, §18, 
is repealed and the following enacted in its place: 
22-A. 
Predicted per-pgpil transportation costs. 
"Predicted 
per-pupil transportation costs" means the greater of: 
A. 
A pupil density model based on the net cost per resident 
pupil for each school administrative unit that is predicted 
by pupil density per mile of Class 1 to Class 5 roads in the 
school administrative unit and approved adjustments: and 
B. The average of the pupil density model under paragraph A 
and an odometer miles model based on the gross cost per 
pupil conveyed for each school administrative unit that is 
predicted by the odometer miles traveled per pupil conveyed 
by the school administrative unit. 
\COMMITTEE AMENDMENT 
at\i. 
COMMITTEE AMENDMENT "6,, to S.P. 683, L.D. 1766 
Approved adjustments include a per-mile rate equal to the state 
average gross transportation operating costs per mile driven for 
transportation associated with out-of-district special education 
programs. 
up to 2 
round trips per day to each facility for 
transportation associated with career and technical education 
programs. 
and adjustments for expenditures for ferry services 
within a school administrative unit. transportation of homeless 
children in accordance with section 5205 and transportation costs 
of island school administrative units. 
Sec. 4. 20-A MRSA §15675, sub-§l, 1JD, as enacted by PL 2005, 
c. 12, Pt. UU, §2 and affected by §§12 and 13 and Pt. WW, §18, is 
amended to read: 
D. 
Notwithstanding' paragraphs A, Band C aaQ--i..()ol"--'iseal 
yea~--~--ealy, a 
school 
administrative 
unit 
that 
receives 
an 
allocation 
for 
limited 
English 
proficiency 
students and that has more than 15 and fewer than 26 limited 
English proficiency students is eligible for an adjustment 
to its allocation for limited English proficiency students 
that is the difference between the amount that the school 
unit would have received under the calculation described in 
paragraph B and the amount that is calculated when the 
school. unit receives for the first 15 students a weight of 
.50 instead of .30 as otherwise required under paragraph B. 
This paragraph is repealed J~Be-6QT-aQQ~ June 30. 2008. 
Sec. 5. 20-A MRSA §15680, sub-§4, as enacted by PL 2003" 
c. 
504, Pt. A, §6, is repealed. 
Sec. 6. 20-A MRSA §15681, sub-§5, as enacted by PL 2003, c. 
504, Pt. A, §6, is repealed. 
Sec. 7. 20-A MRSA §15681-A, sub-§3, as amended by PL 2005, c. 
12, Pt. UU, §3 and affected by §§12 and 13 and Pt. WW, 
§18, is 
repealed and the following enacted in its place: 
3. 
Transportation costs. 
For fiscal year 
2006-07, 
the 
commissioner. using information provided by a statewide education 
policy 
research 
institute. 
shall establish 
for 
each 
school 
administrative unit a predicted per-pupil transportation cost as 
defined in section 15672. 
subsection 
22-A. 
The 
established 
predicted per-pupil transportation cost multiplied by the number 
of the school administrative unit's resident students for each 
school administrative unit must be no less than 90'lt. of the most 
recent 
year's 
reported 
net 
transportation 
expenditures. 
Beginning in fiscal year 2007-08. and for each subsequent fiscal 
year. 
the 
per-pupil 
transportation 
costs 
for 
each 
school 
administrative unit are its predicted per-pupil transportation 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "6" to S.P. 683, L.D. 1766 
cost for the most recent year adjusted by the Consumer Price 
Index or other comparable index, 
except that the established 
predicted per-pupil transportation cost multiplied by the number 
of the school administrative unit' s resident students for each 
school administrative unit must be no less than 90~ of the most 
recent year's 
reported net transportation expenditures. 
The 
commissioner shall develop an appeals procedure for established 
per-pupil transportation costs for school administrative units: 
Sec. 8. 20·A MRSA §15682, as amended by PL 2005, c. 2, Pt. D, 
§46 and affected "by §§72 and 74 and c. 12, Pt. 
WW, 
§18, is 
further amended to read: 
§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 and salary and benefit costs of 
other school-level staff who are not teachers as calculated under 
section 15679. 
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1. 
Regional adjustment for fiscal year 2006-07. 
For fiscal 
year 2006-07, a labor market area adjustment: 
A. 
May not exceed 1.05: and 
B. 
May not be less than .95. 
2. 
Regional adjustment for fiscal year 2007-08. 
For fiscal 
year 2007-08, the labor market adjustment is 1.0 for all labor 
market areas in the State. 
Sec. 9. 20·A MRS A §15683, sub·§l, 1JF, as enacted by PL 2005, 
c. 2, Pt. D, §47 and affected by §§72 and 74 and c. 12, Pt. WW, 
§18, is amended to read: 
F. 
An 
isolated 
small 
unit 
adjustment. 
A 
school 
administrative unit is eligible for an isolated small school 
adjustment 
when 
the 
unit meets 
the 
size 
and 
distance 
criteria as established by the commissioner aBa-~~-&y 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" B" to S.P. 683, L.D. 1766 
~ae-6~a~e-geaEa. 
The amount of the adjustment is the result 
of 
adjusting 
the 
necessary 
student-to-staff 
ratios 
determined in section 15679, 
subsection 2, the per-pupil 
amount for operation and maintenance of plant in section 
15680, subsection 1, paragraph B or other essential programs 
and services components in chapter 606-B, as recommended by 
the commissioner. 
Sec. 10. 20-A MRSA §15686, sub-§2 is enacted to read: 
2. 
Adjustment 
in 
fiscal 
year 
2006-07. 
A 
school 
administrative unit is eligible for a transition adjustment in 
fiscal 
year 
2006-07 
to 
mitigate 
a 
significant increase 
in 
state-certified property valuation according to the provisions of 
this subsection. 
A. 
A school administrative unit is eligible under this 
subsection if it meets the following tier 1 criteria: 
(l) The school administrative unit's state subsidy for 
fiscal 
year 
2006-07. 
including 
the 
transition 
adjustment under this section. is less than the state 
subsidy the 
school 
administrative unit received in 
fiscal year 2005-06. including transition adjustments 
and adjustments for the decline in debt service: and 
(2) 
The school administrative unit's state-certified 
valuation's increase from 2004 to 2005 is greater than 
the 
increase 
in statewide state-certified valuation 
during the same period. 
School 
administrative 
units 
meeting 
the 
criteria 
in 
subparagraphs 
(1) 
and 
(2) 
are 
eligible 
to 
receive 
a 
transition adjustment amount equal to the result of the 
unit's 
valuation 
over 
the 
state 
aye rage 
increase 
in 
valuation 
up 
to 
4% 
multiplied 
by 
the 
statewide 
mill 
expectation established for fiscal year 2006-07 that may not 
result in a state share greater than the unit received in 
fiscal year 2005-06. including transition adjustments and 
adjustments for the decline in debt service. 
B. 
A school administrative unit is eligible under this 
subsection if it meets the following tier 2 criteria: 
(1) The school administrative unit's state subsidy in 
fiscal 
year 
2006-07. 
including 
the 
transition 
adjustment under this section. is less than the state 
subsidy the 
school 
administrative unit received in 
fiscal year 2005-06. including transition adjustments 
and adjustments for the decline in debt service: 
COMMITTEE AMENDMENT 
~,,. 
COMMITTEE AMENDMENT "~,, to S.P. 683, L.D. 1766 
(2) 
The 
school administrative unit's 
adjusted mill_ 
expectation is below the statewide mill expectat;rr 
established for fiscal year 2006-07: 
(3) The school administrative unit's state subsidy in 
fiscal 
year 
2006-07, 
including 
the 
transition 
adjustment under this section, is less than the school 
administrative unit's fiscal year 2004-05 state share 
of its total allocation, including the minimum state 
share of its total allocation pursuant to section 
15689, subsection 1 and the adjustment for geographic 
isolation pursuant to former section 15612, subsection. 
and 
including 
the 
adjustment 
due 
to 
reduced 
expenditures 
for 
buses, 
debt 
service, 
special 
education, gifted and talented education and career and 
technical education: 
(4) The school administrative unit's state subsidy in 
fiscal 
year 
2005-06 
did 
not 
include 
a 
transition 
adjustment: and 
(5) 
·The 
school 
administrative 
unit 
operates 
an 
elementary or secondary school. 
School administrative units meeting all the criteria in this 
paragraph are eligible to receive a transition adjustment in 
an amount equal to the difference between the following: 
the school administrative unit's state subsidy in fiscal 
year 2006-07, including the transition adjustment under this 
section: and the fiscal year 2004-05 state share of the 
school administrative unit's total allocation, including the 
minimum state share of its total allocation pursuant to 
section 
15689, 
subsection 
and 
the 
adjustment 
for 
geographic 
isolation pursuant 
to 
former 
section 
15612, 
subsection 2 and including the adjustment due to reduced 
expenditures for buses, 
debt service, 
special education, 
gifted and talented education 
and career 
and technical 
education plus 5%. 
Sec. II. 20·A MRSA §15686·A is enacted to read: 
§15686-A. 
Reyiew of essential programs and services components 
1. 
Components to be reviewed beginning in fiscal year 
2006-07. 
Beginning in fiscal year 2006-07, and at least every 3 
years thereafter, the commissioner, using information provided by 
a statewide education policy research institute, shall review the 
essential programs and services student-to-staff ratios, salary 
and benefits matrices, transportation, small schools adjustments, 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. t>" to S.P. 683, L.D. 1766 
labor markets 
and gifted and talented components 
under this 
chapter and shall submit to the joint standing committee of the 
Legislature 
having 
jurisdiction 
oyer 
education 
matters 
any 
recommended changes for legislatiye action. 
2. 
Components to be reviewed beginning in fiscal year 
2007-08. 
Beginning in fiscal year 2007-08, and at least every 3 
years thereafter, the commissioner, using information provided by 
a statewide education policy research institute, shall review the 
essential programs and seryices career and technical education. 
special 
education. 
specialized 
student 
populations. 
system 
administration and operations and maintenance components under 
this chapter and shall submit to the joint standing committee of 
the Legislature having jurisdiction oyer education matters any 
recommended changes for legislatiye action. 
3. 
Components 
to be reviewed beginning in fiscal year 
2008-09. 
Beginning in fiscal year 2008-09. and at least eyery 3 
years thereafter. the commissioner. using information proyided by 
a statewide education policy research institute. shall review the 
essential programs and seryices professional development. student 
assessment. 
technology. 
leadership 
support. 
cocurricular 
and 
extra-curricular actiyities and supplies and equipment components 
under 
this chapter 
and shall submit to 
the joint standing 
committee of the Legislature having jurisdiction over education 
matters any reCOmmended changes for legislatiye action. 
Sec. 12. 20-A MRSA §15689, sub-§I, as affected by PL 2005, c. 
12, Pt. WW,·§18 and amended by c. 457, Pt. I, §1, is further 
amended to read: 
1. 
Minimum state allocation. 
Each school administrative 
unit must be guaranteed a 
m1n1mum state share of its total 
allocation that is 
an 
amount 
equal 
to 
the greater 
of 
the 
following: 
A. 
The sum of the following calculations: 
(1) 
Multiplying 
5% 
of 
each 
school 
administrative 
uni tIs 
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 
(2) 
Multiplying 
5% 
of 
each 
school 
administrative 
unit I s 
essential 
programs 
and 
services 
per-pupil 
secondary rate by the average number of resident grade 
to grade 12 pupils as determined under section 15674, 
subsection 1, paragraph C, subparagraph (1); and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. e .. to S.P. 683, L.D. 1766 
B. 
The school administrative unit's special education costs 
as 
calculated pursuant to section l568l-A, 
subsection 2 
multiplied by the following transition percentages: 
(1) 
In fiscal year 2005-06, 84%; 
(2 ) 
In fiscal year 2006-07, 84%; 
(3 ) 
In fiscal year 2007-08, 95'1-0; and 
(4) 
In fiscal year 2008-09 and succeeding years, 100°'!> • 
These funds must be an adjustment to the school administrative 
unit's state and local allocation after the state and local 
allocation has 
been 
adjusted 
for 
debt 
service 
pursuant 
to 
subsection 2. 
Beginning July 1, 2007, these funds must be an 
adjustment to the school administrative unit's state and local 
allocation in addition to the state and local allocation that has 
been adjusted for debt service pursuant to subsection 2. 
Sec. 13. 20-A MRSA §15689, sub-§2, 1fB, as enacted by PL 2003, 
c. 712, §17, is amended to read: 
B. 
The amount of the adjustment is the difference, but not 
less 
than 
zero, 
.betwe.en 
the state 
share of 
the total 
allocation under this chapter and the amount computed as 
follows. 
(l) 
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 
(b) 
The 
local 
share 
amount 
for 
the 
school 
administrative unit calculated 
the 
debt 
service 
costs 
administrative unit's fiscal 
by .50 mills. 
as the lesser of 
and 
the 
school 
capacity multiplied 
This subparagraph is repealed June 30, 2007. 
COMMITTEE AMENDMENT 
.ru. 
~~ . 
COMMITTEE AMENDMENT "13,, to S.P. 683, L.D. 1766 
(2) Beginning July 1. 2007 < 
the school administrative 
unit's state share of the total allocation if the local 
share was the sum of the following: 
Further 
subparagraph 
3, 
lines 32 
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 
the 
debt 
service adjustment mill rate defined in section 
15672, subsection 2-B: and 
(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 the debt service adjustment mill rate defined 
in section 15672, subsection 2-B,' 
amend the bill in section 3 in paragraph B in 
(1) by striking out all of the first paragraph (page 
to 35 in L.D,) 
and inserting in its place the 
'(1) 
"Article ••• " 
Shall (name of municipality or 
district) raise and appropriate $ ••••• ,. in additional 
local 
funds, 
which 
exceeds· the 
State's 
Essential 
Programs 
and 
Services 
~~BQiB~ allocation 
model 
by 
$, , • • •• as required to fund the budget recommended by 
the (school committee or board of directors)?" , 
Further amend the bill by inserting after section 3 the 
following: 
'Sec. 4. PL 2003, c. 712, §21 is repealed. 
Sec, 5. Gifted and talented education. 
To ensure greater equity 
of education opportunities and efficiency in the use of approved 
gifted and talented education resources, 
beginni~g no later than 
fiscal year 2007-08, approved gifted and talented education costs 
must be included in the essential programs and services operating 
cost calculations. 
Sec. 6. Career and technical education. 
To 
ensure greater 
equity of education· opportunities and efficiency in the use of 
approved career and technical education resources, beginning no 
later than fiscal year 2008-09, approved career and technical 
education costs must be included in the essential programs and 
services operating cost calculations. 
COMMITTEE AMENDMENT 
~.,. 
COMMITTEE AMENDMENT .. i> .. to S.P. 683, L.D. 1766 
Sec. 
7. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 
0308 
Initiative: 
Provides one-time funds in fiscal year 2006-07 for 
transition adjustments to eligible school administrative units. 
GENERAL FUND 
All Other 
2005-06 
$0 
2006-07 
$1,818,563 
GENERAL ,FUND TOTAL 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
SUMMARY 
$0 
$1,818,563' 
or renumbering any 
number 
to 
read 
This amendment is the minority report of the Joint Standing 
Committee on Education and Cultural Affairs. 
The amendment makes 
the following changes to the bill. 
1. 
It clarifies the language that must be included in the 
warrant article that is presented annually to the legislative 
body of each school ,administrative unit for the additional local 
appropriation that voters may elect to raise and expend for 
education. 
2. 
It amends 
the 
definition 
of 
"predicted 
per-pupil 
transportation costs" to provide the most beneficial recognition 
of a school administrative unit's transportation costs beginning 
in fiscal year 2006-07. 
Under this new definition, 
a 
school 
unit's predicted per-pupil transportation costs would 
be 
the 
greater of the current pupil density model and the average of the 
pupil density model and an odometer mile model. 
3. 
It provides a 
transition adjustment for fiscal year 
2006-07 
to provide additional state subsidy to those school 
administrative units that have experienced a significant increase 
in the property valuation as compared to the statewide average 
increase in property valuation from 2004 to 2005. 
4. 
Beginning in fiscal year 2007-08, it provides for an 
adjustment to the minimum state allocation for certain outlier 
COMMITTEE AMENDMENT 
fi.;i'io-
COMMITTEE AMENDMENT ".6" to S.P. 683, L.D. 1766 
school administrative units whose state share of debt service 
costs were adversely impacted due to the changes in recognizing 
debt service costs with the enactment of Public Law 2005, chapter 
related to the Essential Programs and Services Funding Act. 
5. 
It provides that, beginning no later than fiscal year 
2007-08, gifted and talented education costs must be included in 
t.he operating cost. calculations of the Essential Programs and 
Services Funding Act. 
6. 
It. provides t.hat, beginning no later than fiscal year 
2008-09, career and technical education costs must be included in 
the operating cost calculations of the Essential Programs and 
Services Funding Act. 
7. 
It establishes an amended review cycle for reviewing and 
proposing updates to cost components in the Essent.ial Programs 
and Services Funding Act, and it clarifies that the Department of 
Education must present any 
recommended 
changes 
based on its 
review to the Legislature. 
Public Law 2005, chapter 519, Part AAAA, which was enacted 
March 
29, 
2006, 
includes 
the 
provisions 
for 
transition 
adjustments for eligible school administrative unit.s that are 
included in this amendment and incorporates all of the statutory 
changes proposed in this amendment with the exception of the 
market labor adjustments to the regional adjustment set forth in 
the Maine Revised Statutes~ Title 5, section 15682, subsections 1 
and 2. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
• 
Approved: 04/03/06 ~ae. 
LD 1766 
LR 3021(03) 
An Act to Further the Implementation of the Essential Programs and Services Funding Model 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment "13" 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Minority Report 
Fiscal Note 
Potential current biennium cost increase - General Fund 
Amending the regional adjustment to the salary and benefit costs of teachers and other school personnel that are based 
on labor market areas may increase the total state and local cost of funding K-12 public education beginning in fiscal 
year 2006-07. The amount can not be determined at this time. _ Information from the Department of Education 
indicates that this measure will affect the distribution of school subsidy with the 104 units that are currently below the 
.95 threshold in FY 2006-07 receiving an increase in subsidy and the 26 units that are currently above the 1.05 
threshold receiving less subsidy. Requiring the labor market adjustment to be 1.0 for all labor markets in the State 
beginning in FY 2007-08 will result in 193 ofthe 288 units that are currently below 1.0 receiving an increase in 
subsidy and the 82 units that are currently above 1.0 receiving less subsidy. 
Public Law 2005, Chapter 519, Part AAAA, the 2006-2007 Supplemental Budget, includes the provisions for 
transition adjustments for eligible school administrative units that are included in this legislation and provides for the 
one-time c~sts of the measure, estimated to be $1,818,563, as part of the FY 2006-07 General Fund appropriation for 
the General Purpose Aid for Local Schools program. 
LR3021(3) - Fiscal Note - Page 1 of 1