An Act Regarding Transition Provisions for the Sharing of Costs in Certain School Districts
Maine Legislature, Session 122, LD 1684
Amends: 20-A MRSA §15688

Legislative Document 
No. 1684 
H.P.1189 
House of Representatives, May 26, 2005 
An Act Regarding Transition Provisions for the Sharing of Costs in 
Certain School Districts 
(EMERGENCY) 
Reported by Representative NORTON of Bangor for the Joint Standing Committee on 
Education and Cultural Affairs pursuant to Public Law 2005, chapter 2, Part D, section 68. 
Printed on recycled paper 
1J1~ 
/J7.17/~~ 
MILLICENT M. MacFARLAND 
Clerk 
Emergency preamble. Whereas, acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies: and 
Whereas, Public Law 2005, chapter 2 directs the Department 
of Education to conduct a review and analysis of the implications 
of the proposed cost-sharing mechanism established pursuant to 
the Maine Revised Statutes, Title 20-A, section 15688, subsection 
on the member municipalities of school administrative districts 
and community school districts whose cost-sharing formulas were 
established in accordance with Title 20-A, 
sections 
1301 and 
1704, respectively: and 
Whereas, it is necessary to establish transition provisions 
for certain school districts whose cost-sharing formulas 
may 
result in adverse fiscal impacts for member municipalities within 
those school districts in fiscal year 2005-06: and 
Whereas, it is 
necessary 
to 
allow 
the 
Department 
of 
Education additional time to assist certain school districts in 
developing transition plans that include a phase-in to achieve 
the 
new 
method 
of 
determining 
member 
municipalities' 
local 
contribution to the total cost of education in accordance with 
Title 20-A, section 15688, subsection 2; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency wi thin the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety: now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 
Transition adjustments. 
The 
following 
transition 
adjustments apply to eligible school administrative districts and 
community school districts. 
1. 
For fiscal year 2005-06, eligible school administrative 
districts and community school districts must receive transition 
adjustments to the member municipalities' local contributions and 
the districts' state contributions. 
A. 
A school administrative district or community school 
district is eligible for these adjustments if it meets the 
following eligibility criteria. 
(1) 
One or more member municipalities, but not all the 
district's 
member 
municipalities, 
have 
a 
local 
contribution that is below the 8.26 mill expectation. 
Page l-LR2383 (l) 
(2) 
A 
member 
municipality's 
local 
contribution 
pursuant to the Maine Revised Statutes, Title 20-A, 
section 15688 is 
50,!> greater than that municipality's 
local share would have been under its existing local 
cost-sharing formula. 
B. 
A school administrative district or community school 
district that meets the eligibility criteria in paragraph A 
must 
receive 
a 
transition 
adjustment 
to 
the 
state 
contribution equal to the following. 
(1) 
For each municipality in the district that meets 
the eligibilit}" criteria in paragraph A, 
the sum of 
each municipality's 
special 
education allocation 
as 
determined in paragraph D multiplied by 0.25. 
c. 
A school 
district that 
must have its 
administrative district or community school 
meets the eligibility criteria in paragraph A 
local contribution adjusted as follows. 
(1) 
For each municipality in the district that meets 
the 
eligibility 
criteria 
in 
paragraph 
A, 
the 
municipality's 
local 
contribution 
as 
determined 
pursuant to Title 20-A, section 15688 must be reduced 
by 
an 
amount 
equal 
to 
the 
municipality's 
special 
education 
allocation 
as 
determined 
in 
paragraph 
D 
multiplied by 0.25. 
D. 
Each member municipality's special education allocation 
is the special education allocation pursuant to Title 20-A, 
section l568l-A, subsection 2 for the district multiplied by 
the percentage of calendar year resident pupils in each 
municipality. 
This section is repealed June 30, 2006. 
Sec. 2. Method of sharing total costs in School Administrative 
District No. 71; transition provision. 
Notwithstanding 
the 
Maine 
Revised Statutes, Title 20-A, section 15688, subsection 3-A, the 
local contribution to the total cost of funding public education 
from kindergarten to grade 12 for each member municipality in 
School Administrative District No. 71 is subject to the following 
transition 
prov~s~ons for fiscal year 
2005-06 to fiscal year 
2008-09 and future years. 
For each of these fiscal years, School 
Administrative 
District 
No. 
shall 
calculate 
the 
local 
contribution for each member municipality in the school district 
as follows. 
1. 
For fiscal year 2005-06, 50% of the local contribution 
for each municipality must be based on property fiscal capacity 
as defined in Title 20-A, section 15672, 
must be based on pupil counts pursuant 
15674, subsection 1, paragraph C. 
subsection 23, 
to Title 20-A, 
and 50"'0 
section 
2. 
For fiscal year 2006-07, 40% of the local contribution 
for each municipality must be based on property fiscal capacity 
as defined in Title 20-A, section 15672, subsection 23, and 60°1> 
must be based on pupil counts pursuant to Title 20-A, section 
15674, subsection 1, paragraph C. 
3. 
For fiscal year 2007 -08, 
30% of the local contribution 
for each municipality must be based on property fiscal capacity 
as defined in Title 20-A, section 15672, subsection 23, and 70°1> 
must be based on pupil counts pursuant to Title 20-A, section 
15674, subsection 1, paragraph C. 
4. 
For fiscal year 2008-09 and subsequent fiscal 
local 
contribution 
for 
each municipality 
must 
be 
pursuant to Title 20-A, section 15688. 
years, the 
determined 
Sec. 3. Method of sharing total costs in Manchester, Mount Vernon. 
Readfield and Wayne Community School District; transition provision. 
Notwithstanding the Maine Revised Statutes, Title 20-A, section 
15688, subsections 2 and 3, and to ensure that none of the member 
municipalities in the Manchester, 
Mount Vernon, 
Readfield and 
Wayne Community School District, referred to in this section as 
"the school district," experiences significant adverse effects as 
a result of the cost-sharing mechanism established pursuant to 
Title 
20-A, 
section 15688, 
subsections 
and 
3, 
the 
school 
district's contribution to 
the total cost of 
funding public 
education from grade 6 to grade 12 as described in the Essential 
Programs and Services Funding Act must be contributed to by the 
school district's member municipalities in accordance with the 
transition provisions set forth in this section for fiscal year 
2005-06 to fiscal year 2008-09. 
For each of these 4 
fiscal 
years, 
the 
school 
district 
shall 
determine 
each 
member 
municipality's 
percentage 
share 
of 
the 
school 
district's 
contribution to the total cost of funding public education from 
grade 6 to grade 12 in accordance with Title 20-A, section 15688 
and in accordance with the school district's prior cost-sharing 
formula. 
1. 
For fiscal year 2005-06, 
60"'0 of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipali ties based on the percentages determined in accordance 
with Title 20-A, section 15688, and 40% of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipalities in accordance with the percentages determined in 
accordance with the school district's prior cost-sharing formula. 
2. 
For fiscal year 2006-07, 
75% of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipalities based on the percentages determined in accordance 
with Title 20-A, section 15688, and 25% of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipalities in accordance with the percentages determined in 
accordance with the school district's prior cost-sharing formula. 
3. 
For fiscal year 2007 -08, 
90°'0 of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipalities based on the percentages determined in accordance 
with Title 20-A, section 15688, and 10% of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipalities in accordance with the percentages determined in 
accordance with the school district's prior cost-sharing formula. 
4. 
For fiscal year 2008-09, 100'l-0 of the school district's 
contribution to the total cost of funding public education from 
grade 
to 
grade 
must 
be 
allocated 
among 
the 
member 
municipalities based on the percentages determined in accordance 
with Title 20-A, section 15688. 
This 
section does 
article is approved at 
Mount Vernon, Readfield 
to June 30, 2005: 
not take effect unless 
the 
following 
a district meeting of the Manchester, 
and Wayne Community School District prior 
Article 
Shall the Manchester, Mount Vernon, Readfield 
and 
Wayne 
Community 
School 
District 
approve 
a 
cost-sharing 
transition provision for 
fiscal years 
2005-06 through 2008-09 
under which the district's contribution to the total cost of 
funding public education from grade 
to grade 12 under the 
Essential Programs and Services Funding Act is shared by the 
member municipalities of the district partially on the basis of 
the 
Maine 
Revised 
Statutes, 
Title 
20-A, 
section 
15688 
and 
partially on 
the basis of 
the district's prior cost-sharing 
formula in accordance with the following percentages: 
FISCAL YEAR 
2005-06 
2006-07 
PERCENTAGE SHARED 
UNDER 20-A MRSA 
§15688 
PERCENTAGE SHARED 
UNDER DISTRICT'S 
COST-SHARING 
FORMULA 
2007-08 
2008-09 
The district meeting at which the article is considered must be 
conducted in accordance with the same procedures as 
a regular 
annual budget meeting conducted pursuant to Title 20-A, section 
1701. 
Sec. 4. Method of sharing costs in School Administrative District No. 
74; 
transition 
provision. 
Notwithstanding 
the 
Maine 
Revised 
Statutes, Title 20-A, section 15688, subsections 2 and 3, and to 
ensure that the member municipalities in School Administrative 
District No. 74 do not experience significant adverse effects as 
a result of the cost-sharing mechanism established pursuant to 
Title 20-A, section 15688, subsections 2 and 3, the Department of 
Education shall continue to review and analyze the implications 
of 
this 
proposed 
cost-sharing 
mechanism 
on 
the 
member 
municipalities in School Administrative District No. 
74. 
The 
Department of Education shall assist the member municipalities in 
School Administrative District No. 74 in developing a transition 
plan that includes 
a 
phase-in to achieve the 
new method of 
determining member municipalities' 
local cost of education in 
accordanc~ with Title 20-A, section 15688, subsections 2 and 3 no 
later than fiscal year 
2008-09. 
The Department of Education 
shall 
report 
the 
findings 
of 
this 
review, 
including 
any 
recommended 
legislation, 
to 
the 
Joint 
Standing 
Committee 
on 
Education and Cultural Affairs no later than February 1, 2006. 
The Joint Standing Committee on Education and Cultural Affairs is 
authorized to introduce 
a bill related to the Department of 
Education report to the Second Regular Session of the 122nd 
Legislature. 
Sec. 5. State valuation for Town of Lincoln. 
Notwithstanding the 
filing deadline set forth in the Maine Revised Statutes, Title 
36, section 208-A, the Town of Lincoln may request a reduction in 
its state valuation under Title 36, section 208-A for the year 
2004 based on the reduction in value of the Eastern Fine Paper 
plant in the town. 
Sec. 6. General purpose aid for local schools; Town of Lincoln. 
Notwithstanding any other provision of law, the Commissioner of 
Education shall adjust the payments to the Town of Lincoln for 
general purpose aid for local schools in accordance with the 2004 
state valuation amount of $225,000,000 for fiscal year 2005-06. 
If any savings occur in fiscal year 2005-06 general purpose aid 
for 
local 
schools 
account, 
the 
appropriate 
amount 
of 
those 
savings must be applied to increase the general purpose aid for 
local schools allocation to School Administrative District No. 67 
for fiscal year 2005-06. 
If insufficient savings occur in the 
fiscal 
year 
2005-06 
general 
purpose 
aid 
for 
local 
schools account, the appropriate increase in the general purpose 
aid 
for 
local 
schools 
allocation 
to 
School 
Administrative 
District 
No. 
for 
2005-06 
must 
be 
applied 
as 
an 
audit 
adjustment 
to 
the 
general 
purpose 
aid 
for 
local 
schools 
allocation in fiscal year 2006-07. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill is reported out as an emergency bill by the Joint 
Standing Committee on Education and Cultural Affairs pursuant to 
Public Law 2005, chapter 2. 
The bill changes the cost-sharing 
mechanism established by 
the Essential 
Programs 
and Services 
Funding Act and incorporates transition provisions for certain 
school 
districts 
whose 
cost-sharing 
formulas 
may 
result 
in 
adverse 
impacts 
for 
member 
municipalities within the 
school 
districts. 
The bill accomplishes the following. 
total 
1. 
It provides an 
allocation 
for 
adjustment to the state 
school 
administrative 
share of 
districts 
the 
and 
community school districts that have member municipalities with 
local 
contributions 
that 
are 
below 
the 
maximum 
mill 
rate 
expectation but that are adversely affected as a result of the 
cost-sharing mechanism established pursuant to the Maine Revised 
Statutes, Title 20-A, section 15688. 
2. 
It 
provides 
cost-sharing formula of 
fiscal year 2005-06 to 
years. 
transition 
provisions 
to 
the 
current 
School Administrative District No. 71 for 
fiscal year 2008-09 and subsequent fiscal 
3. 
It provides transition provisions to the cost-sharing 
formula of the Manchester, 
Mount Vernon, 
Readfield and Wayne 
Community School District for fiscal year 2005-06 to fiscal year 
2008-09. 
4. 
It provides a one-year extension to allow the Department 
of Education to continue to assist School Administrative District 
No. 74 in developing a transition plan to phase in the new method 
of determining member municipalities' local cost of education in 
accordance with Title 20-A, section 15688 by fiscal year 2008-09. 
5. 
It authorizes the Commissioner of Education to adjust 
the allocation of general purpose aid to local schools for School 
Administrative District No. 67 in fiscal year 2005-06 should the 
state valuation for the Town of Lincoln be reduced due to a 
reduction in value of the Eastern Fine Paper plant. 
Approved: 05118/05 :::tvac. 
LD (Not Known) 
LR 2383(01) 
An Act Regarding Transition Provisions for the Sharing of Costs in Certain School Districts 
Fiscal Detail and Notes 
Fiscal Note for Original Bill 
Reported out by: Education and Cultural Affairs 
Committee: Not Referred 
Fiscal Note Required: Yes 
Fiscal Note 
No net State fiscal impact 
This legislation may affect the percentage of funds contributed by the member municipalities for the local share of 
funding K-12 public education beginning in fiscal year 2005-06. The impact to each member municipality can not be 
determined at this time. This legislation will not affect the amount of state subsidy to be received by the affected 
school administrative districts and community school districts for General Purpose Aid for Local Schools. 
The additional one-time cost to the Department of Education to provide an adjustment to the state share of the total 
allocation for school administrative districts and community school districts that have member municipalities with 
local contributions that are below the maximum mill rate expectation of 8.26 mills but are adversely impacted by the 
established cost-sharing mechanism is estimated to be $189,000 in fiscal year 2005-06. The Department of Education 
can absorb the additional cost of this provision within the funds appropriated for General Purpose Aid for Local 
Schools for fiscal year 2005-06. 
Authorizing the Commissioner of Education to adjust the allocation of general purpose aid to local schools for School 
Administrative District No. 67 in fiscal year 2005-06 if the State Valuation for the Town of Lincoln is reduced will 
increase the amount of school subsidy received by SAD 67 by $125,000. Since this legislation requires the 
Department of Education to fund the increase through savings that may occur in the General Purpose Aid for Local 
Schools program in fiscal year 2005-06 or as an audit adjustment in the program in fiscal year 2006-07, no additional 
General Fund appropriation is required. However, if an audit adjustment is required in fiscal year 2006-07, it will 
reduce the amount of subsidy available for distribution to all other local school units In the State. The impact to each 
individual unit can not be determined at this time. 
LR2383( 1) - Fiscal Note - Page 1 of 1