An Act To Increase the State Share of Education Costs, Reduce Property Taxes and Reduce Government Spending at All Levels Amend the amendment by striking out all of Part D and inserting in its place the following: PARTD Sec. D·l. 5 MRSA §17154, sub·§6, 1fE, as amended by PL 2003, c. 504, Pt. B, §1, is further 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 or 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 315T-eGe and 606-B. Sec. D-2. 20·A MRSA §1, sub·§§17 and 18, as amended by PL 1999, c. 75, §1, are further amended to read: 17. Major capita1 costs. Major capital costs" is defined in section le9G~T-6~g6ee~ieB-l+ 15672, subsection 18-A. 18. Minor capital. costs. Minor capital costs" is defined in section le9G~T-s~eseeEieB-18 15672, subsection 20-A. Page l-LR0328(12) HOUSE AMENDMENT
Maine Legislature, Session 122, LD 0001
Committee Amendment CA_A-HA_H_H12 (House)
Amends: 5 MRSA §17154, 20-A MRSA §1301, 20-A MRSA §1311, 20-A MRSA §1351, 20-A MRSA §1407, 20-A MRSA §1701, 20-A MRSA §1701-B, 20-A MRSA §1704, 20-A MRSA §4003-A, 20-A MRSA §4254, 20-A MRSA §5401, 20-A MRSA §6651, 20-A MRSA §6654, 20-A MRSA §8301, 20-A MRSA §8351, 20-A MRSA §8402, 20-A MRSA §15622, 20-A MRSA §15671, 20-A MRSA §15671-A, 20-A MRSA §15672, 20-A MRSA §15673, 20-A MRSA §15675, 20-A MRSA §15676, 20-A MRSA §15676-A, 20-A MRSA §15682, 20-A MRSA §15683, 20-A MRSA §15686, 20-A MRSA §15688, 20-A MRSA §15689, 30-A MRSA §2181

HOUSE AMENDMENT "ff, to COMMITTEE AMENDMENT "A" to H.P. 6, 
L.D. 1, Bill, "An Act To Increase the State Share of Education 
Costs, Reduce Property Taxes and Reduce Government Spending at 
All Levels" 
Amend 
the amendment 
by striking out all of Part D and 
inserting in its place the following: 
'PARTD 
Sec. D·l. 5 MRSA §17154, sub·§6, 1fE, as amended by PL 2003, c. 
504, Pt. B, §1, is further 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 or 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 315T-eGe and 
606-B. 
Sec. D-2. 20·A MRSA §1, sub·§§17 and 18, as amended by PL 
1999, c. 75, §1, are further amended to read: 
17. 
Major capita1 costs. 
"Major capital costs" is defined 
in section le9G~T-6~g6ee~ieB-l+ 15672, subsection 18-A. 
18. 
Minor capital. costs. 
"Minor capital costs" is defined 
in section le9G~T-s~eseeEieB-18 15672, subsection 20-A. 
Page l-LR0328(12) 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,,11<· to COMMI TTEE AMENDMENT "A" to H. P. 6, L. D . 1 
Sec. D-3. 20-A MRSA §1301, sub-§I, 1fA, as amended by PL 1993, 
c. 410, Pt. F, §3, is further amended to read: 
A. 
Under a property valuation method, municipalities in a 
district shall share costs in the same proportion as each 
municipality's fiscal capacity as defined in section 1geQh 
s\il:~seet;.iG-a--±l-A 15672, subsection 23 is to the district' s 
fiscal capacity. 
Sec. D-4. 20-A MRSA §1301, sub-§I, 1fB, as amended by PL 2001, 
c. 375, §1, is further amended to read: 
B. 
Under an alternate plan approved by the state board and 
by 
a 
vote 
of 
the 
1egislati ve 
bodies 
of 
the 
school 
administrative units forming the district and based on: 
(1) 
The number of resident pupils in each town; 
(2) 
The fiscal capacity of each member municipality as 
defined 
in 
section 
1geQ~.,.--~i-on---ll-A 15672 , 
subsection 23; 
(3) 
Any combination of subparagraphs (1) and (2); or 
(4) 
Any other factor or combination of factors that 
may, but need not, include subparagraphs (1) and (2). 
Sec. D-S. 20-A MRSA § 1307, sub-§3, as amended by PL 1997, c. 
68, §1, is further amended to read: 
3. 
Sunanary action. 
To summarize the action taken on the 
school budget for the purposes of determining state and local 
cost sharing, the articles prescribed in chapter eGe ~ 
must 
also be voted upon. 
Sec. D-6. 20·A MRSA §1307, sub-§4, as enacted by PL 1997, c. 
68, §2, is amended to read: 
4. 
Budqet 
explanation. 
The 
warrant 
may 
include 
an 
explanation 
of 
the 
relationship 
between 
warrant 
articles 
authorizing 
specific 
line 
item 
expenditures 
as 
provided 
in 
subsection 1 and the articles prescribed in chapter ege 606-8 
summarizing the budget proposal. 
Sec. D·7. 20·A MRSA §1308, as amended by PL 1999, c. 710, 
§6, is further amended to read: 
§130S. 
Failure to pass budget 
HOUSE AMENDMENT 
.. 
HOUSE AMENDMENT "H" to COMMITTEEAMEJlDMENT "A" to H.P. 6, L.D. 1 
If a 
budget for 
the operating of the district is not 
approved prior to July 1st, the latest budget as submitted by the 
board of directors is automatically considered the budget for 
operational expenses for the ensuing year until a final budget is 
approved, except that, when the school board delays the school 
budget meeting in accordance with section 19911 15693, subsection 
2, paragraph C, the operating budget must be approved within 30 
days of the date the commissioner notifies the school board of 
the amount allocated to the school unit under section 
1991~ 
15689-B or the latest budget submitted by the directors becomes 
the operating budget for the next school year. 
Sec. D-S. 20-A MRSA §1311, sub-§l, 1fC, as amended by PL 1993, 
c. 372, §4, is further amended to read: 
C. 
Minor 
capital 
costs 
as 
defined 
in 
section 
1999~T 
s~Bsee~ieB-18 15672, subsection 20-A. 
Sec. D-9. 20-A MRSA §1351, sub-§l, 1fK, as amended by PL 1999, 
c. 75, §2, is further amended to read: 
K. 
To borrow funds for minor capital costs as defined in 
section 1999~T-s~Bsee~ieB-18 15672, subsection 20-A. 
Sec. D-IO. 20-A MRSA §1407, sub-§2, as amended by PL 1999, c. 
75, §3, is further amended to read: 
2. 
Expense of keeping- school open. 
If the voters vote to 
keep the school open, the member municipality is liable for some 
additional 
expense 
for 
actual 
local 
operating 
costs 
and 
transportation 
operating 
costs 
as 
defined 
in 
section 
1999~ 
15672. 
The determination of costs is subject to the approval of 
the commissioner. 
The cost to be borne by the town voting to 
keep an elementary school open is the amount that would be saved 
if the school were closed. 
Any additional costs that must be 
borne by the member municipality must be part of the article 
presented to the voters at the meeting to determine whether the 
school should remain open. 
Sec. D-ll. 20-A MRSA §1701, sub-§3, as amended by PL 1991, c. 
429, §4, is further amended to read: 
3. 
Time and place. 
The district school committee shall 
call an annual budget meeting on or before June 30th at an hour 
and 
in 
a 
location within 
the 
community 
school district it 
designates, except that the school committee may delay the annual 
budget meeting to 
a 
date after July 1st in accordance with 
section 19911 15693, subsection 2, paragraph C. 
HOUSE AMENDMENT 
~e 
~';v.Ji" 
,;t~ ~ 
.. 
~ 
HOUSE AMENDMENT "#''' to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D-12. 20-A MRSA §1701, sub-§9, 1rA, as amended by PL 1999, 
c. 710, §8, is further amended to read: 
A. 
The budget format may be determined by the voters of a 
community school district by adoption of 
an appropriate 
warrant article at 
a 
properly called election held in 
accordance with the procedure set forth in section leel+ 
15693, subsection 6. 
Sec. D-13. 20-A MRSA §1701, sub-§12, as amended by PL 1999, c. 
710, §10, is further amended to read: 
12. 
State-local allocations. 
To summarize the action taken 
on the budget for the purposes of determining the community 
school 
district's 
state-local 
allocations, 
the 
articles 
prescribed in chapter e99 ~ 
must also be voted on. 
Sec. D-14. 20-A MRSA §1701-B, sub-§5, as enacted by PL 1999, 
c. 710, §11, is amended to read: 
5. 
Failure to 
approve budget. 
If the 
voters 
do 
not 
validate the budget approved in the district budget meeting at 
the 
budget 
validation 
referendum 
vote, 
the 
district 
school 
committee 
shall 
hold 
another 
district 
budget 
meeting 
in 
accordance with section 1701, subsection 8 at least 10 days after 
the referendum to vote on a budget approved by the committee. 
The 
budget 
approved at the district budget meeting must 
be 
submi tted 
to 
the 
voters 
for 
validation 
at 
referendum 
in 
accordance with this section. 
The process must be repeated until 
a budget is approved at a district budget meeting and validated 
at referendum. 
If a budget is not approved and validated before 
July 1st of 
each year, 
the latest budget 
submitted by 
the 
committee is automatically considered the budget for operational 
expenses for the ensuing year until a final budget is approved, 
except that when the school committee delays the district budget 
meeting in accordance with section 1ge1+ 15693, subsection 2, 
paragraph C the operating budget must be approved within 30 days 
of the date the commissioner notifies the school committee of the 
amount allocated to the school unit under section lee16 15689-B 
or the latest budget submitted by the committee becomes 
the 
operating budget for the next school year. 
Sec. D-15. 20-A MRSA §1704, sub-§l, 1[B, as amended by PL 1993, 
c. 410, Pt. F, §4, is further amended to read: 
B. 
The 
fiscal 
capacity of each member 
municipality as 
defined in section lee967--sub&e-ot....;i,on..-]']'-A 15672, subsection 
n; 
Sec. D-16. 20-A MRSA §4003-A is enacted to read: 
HOUSE AMENDMENT 
~\~:.::,) 
~,:,~ 
~iV\ ... , 
, . 
HOUSE AMENDMENT 'If' ~o COMMITTEE AMENDMENT "A" to H.P. 6. L.D. 1 
§4003-A. 
Hazardous chemicals 
The 
commissioner 
shall 
establish 
rules 
governing 
the 
purchase and storage of hazardous chemicals in schools. 
Sec. D-17. 20-A MRSA §4254, sub-§l, as amended by PL 1997, c. 
534, §3, is further amended to read: 
1. 
Allowable costs. 
Allowable 
costs 
are 
the 
cost of 
implementing approved plans; these costs may be added to the 
school unit's subsidizable costs under chapter aQa ~. 
Sec. D-18. 20-A MRSA §5401, sub-§15, ,C, as amended by PL 
2001, c. 667, Pt. C, §ll, is further amended to read: 
C. 
A school board may obtain a short-term loan or enter 
into a lease-purchase agreement to acquire school buses if 
the loan is approved by the unit's legislative body or if 
funds 
that can 
be 
used 
for 
the initial lease-purchase 
payment have been appropriated by the unit's legislative 
body. 
The term of a loan or a lease-purchase agreement may 
not exceed 5 years. 
The commissioner shall establish a 
maximum amount for annual-term purchases in excess of the 
amount established in paragraph A. 
Beginning in fiscal year 
6QQ~-Q4 2005-06, these expenditures must be subsidized in 
accordance with seetieB-19aQ~T-s~BseetieB-6a-A chapter 606-B. 
Sec. D-19. 20-A MRS A §6303, as enacted by PL 1995, c. 427, 
§l, is amended to read: 
§6303. Medicaid for health and human services 
A school administrative 
Medicaid program pursuant to 
Act, 
United States Code, 
health, health, habilitation, 
unit may receive funds 
from the 
the United States Social Security 
for the 
prov~s~on of preventive 
rehabilitation and social services 
to eligible students iB-a€€e£Qa~€e-~~~~-~-~~~~r-SQBSee~ieB 
;b9 • 
Sec. D-20. 20-A MRSA §6651, sub-§3, as amended by PL 1989, c. 
414, §16, is repealed. 
Sec. D-21. 20-A MRSA §6654, as amended by PL 1991, c. 550 and 
PL 2003, c. 689, Pt. B, §6, is further amended to read: 
§6654. School-based child care grants 
The 
Services 
department 
and 
the 
are 
authorized 
to 
Department 
of Health 
provide 
assistance 
and 
to 
HOUSE AMENDMENT 
Human 
school 
HOUSE AMENDMENT 'k' to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
administrative 
units 
to 
assist 
the 
units 
in 
establishing 
school-based child care services. 
ARy--a&&i..s-t-cffi€-e-fF-G-~1ded--HlliSt: 
~reviae--~-~~--~--y&ar&-~-e~~Re4~~~e--9~-~~-~~~--is 
eeRsiaerea-~~1t~r~-~~--~99a~-~~-iR-~~~&~~-~~-liRit:~s 
ealieatieRal-~~~-£~£~£--iR-~~--eQe~---~h&-~~~--aas 
€lill-~~~~~--~-aaHliRisEer-~~~-~re§raHI-~~--~~-e~erates 
liRaer-t:ais-seetieRT 
Sec. D·22. 20·A MRSA §7734.A, first 1[, as repealed and replaced 
by PL 1999, c. 296, §10, is amended to read: 
In addition to the programs authorized in this chapter, 
school administrative units may provide services for children who 
are disabled in a manner consistent with sections 4251 to 4254, 
and 
the 
cost 
of 
such 
services 
is 
subsidizable 
as 
special 
education costs under chapter aGe 606-B. 
Sec. D·23. 20-A MRSA §8301·A, sub·§§4 and 9, as enacted by PL 
1991, c. 518, §2, are amended to read: 
4. 
Municipality. 
"Municipality" has the same meaning as in 
section les96r-sliBseetieR-19 15672, subsection 21. 
9. 
State subsidy. 
"State subsidy" has the same meaning as 
in section lea96r-sliaseetieR-6e 15672, subsection 31-A. 
Sec. D·24. 20-A MRSA §8351, as amended by PL 1991, c . 518, 
§9 and c. 716, §6 and PL 2003, c. 545, §5, is further amended to 
read: 
§8351. State aid for career and technical education centers 
and career and technical education reqions 
State aid for centers and regions must be administered in 
accordance with chapters eGa 606-B and 609 and Title 20, section 
3457. 
Sec. D-25. 20-A MRSA §8402, as corrected by RR 2003, c. 2, 
§55, is amended to read: 
§8402. Proqrams 
A center shall provide programs of career and technical 
education. 
Programs 
of 
career 
and 
technical 
education 
are 
eligible to receive state subsidy pursuant to chapters eGa 606-B 
and 609. 
All programs of career and technical education offered 
by a center must be approved by the commissioner pursuant to 
section 8306-A. 
The programs must offer a sequence of courses 
that are directly related to the preparation of individuals for 
employment in current or emerging occupations and may include 
HOUSE AMENDMENT 
HOUSE AMENDMENT off" to COMMITTEE AMENDMENT "A" to HoP 0 
6, L. D • 1 
training and education in academic and business skills preparing 
students to further their education at the community college or 
other 
college 
level 
or 
allowing 
students 
to 
use 
trade 
and 
occupational skills on other than an employee basis. 
Programs of 
career 
and technical 
education 
may 
also 
include 
alternative 
educational 
programs 
and 
training 
and 
education 
in 
music, 
athletics, art and other activities approved by the commissioner 
pursuant to section 8306-A. 
Sec. D·26. 20·A MRS A §8404, sub·§3, ~C, as corrected by RR 
2003, c. 2, §59, is amended to read: 
C. 
Shall, in the event that the school boards of School 
Administrative 
District 
No. 
27, 
School 
Administrative 
District No. 33 and Madawaska School Department enter into a 
cooperative agreement pursuant to section 8401 and a 
new 
career 
and 
technical 
education 
center 
in 
Maine 
School 
Administrative District No. 33 becomes operational, devise a 
cost sharing formula for 
the center established thereby 
pertaining to the cost of career and technical education 
programs that exceed expenditures made for those programs in 
the base year as adjusted pursuant to section l§eG~ 15681-A, 
subsection --!;-
~ and to the local share of debt service 
costs attributable to construction of the center in School 
Administrative District No. 33; 
Sec. D·27. 20·A MRSA §8451·A, as corrected by RR 2003, c. 2, 
§61, is amended to read: 
§8451-A. Programs 
A region shall provide programs of career and technical 
education. 
Programs 
of 
career 
and 
technical 
education 
are 
eligible to receive state subsidy pursuant to chapters eGe ~ 
and 609. 
All programs of career and technical education offered 
by a 
region must be approved by the commissioner pursuant to 
section 8306-A. 
The programs must offer a sequence of courses 
that are directly related to the preparation of individuals for 
employment in current or emerging occupations and may include 
training and education in academic and business skills preparing 
students to further their education at the community college or 
college level or allowing students to use trade and occupational 
skills on other than an employee basis. 
Programs of career and 
technical 
education 
may 
also 
include alternative educational 
programs and training and education in music, athletics, art and 
other activities approved by the commissioner pursuant to section 
8306-A. 
Sec. D·28. 20·A MRSA §8601.A, sub·§6, as enacted by PL 1991, 
c. 518, §33, is amended to read: 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,~" to COMMITTEE AMENDMENT "A" to H,P, 6, L,D, 1 
6. 
Municipality. 
"Municipality" has the same meaning as in 
section ~§aG6T-SQBSee~iaR-~9 15672, subsection 21. 
Sec. D·29. 20·A MRSA §8605, sub.§2, 1[B, as amended by PL 1995, 
c. 665, Pt. J, §1, is further amended to read: 
B. 
The 
unit 
in which 
such 
a 
person 
resides 
must 
be 
reimbursed in accordance with eaap~eFs-aQa-aBe-9Qe-A chapter 
606-B. 
Sec. D·30. 20·A MRSA §8606·A, sub·§2, 1fC, as amended by PL 
1991, c. 518, §38, is further amended to read: 
C. 
The recommendation in the commissioner's funding level 
certification must include local program cost adjustment to 
the equivalent of the year prior to the year of allocation. 
This 
adjustment 
is 
calculated 
according 
to 
the 
same 
guidelines established, for purposes of chapter aQa 606-B, 
by section *§aQ§ 15689-C, subsection 3. 
Sec. D·31. 20-A MRSA §15622 is enacted to read: 
§15622. 
Repeal 
This chapter is repealed July 1, 2005. 
Sec. D·32. 20·A MRSA §15671, sub-§l, as amended by PL 2003, c. 
712, §9, is further amended to read: 
1. 
State and local partnership. 
The State and each local 
school 
administrative 
unit 
are 
jointly 
responsible 
for 
contributing to the cost of the components of essential programs 
and services described in this chapter. 
Except as otherwise 
provided in this subsection, for each fiscal year, the total cost 
of the components of essential programs and services may not 
exceed the prior fiscal year's costs multiplied by one plus the 
average real personal income growth rate as defined in Title 5, 
section 1665, subsection 1, except that in no case may that rate 
exceed 2.75%. 
For fiscal years commencing after the state tax 
burden ranks in the middle 1/3 of all states, as calculated and 
certified by the State Tax Assessor, 
the total cost of the 
components of essential programs and services may not exceed the 
prior fiscal year's costs multiplied by one plus the average real 
personal income growth rate as defined in Title 5, section 1665, 
subsection 1. 
The Legislature, by an affirmative vote of each 
House, may exceed the limitations on increases in the total cost 
of the components of essential programs and services provided in 
this subsection, as long as that vote is taken upon legislation 
stating that it is the Legislature's intent to override the 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,t, to COMM! T'l'EE AMENDMENT "A" to H, P, 6 , 
L , D. 1 
limitation for that fiscal year. 
The state contribution to the 
cost 
of 
the 
components 
of essential 
programs 
and 
services, 
exclusive of federal funds that are provided and accounted for in 
the cost of the components of essential programs and services, 
must be made in accordance with this subsection: 
A. 
The level of the state share of funding attributable to 
the 
cost 
of 
the 
components 
of 
essential 
programs 
and 
services must be at least 50% of eligible state and local 
General Fund education costs statewide, no later than fiscal 
year 6991-98 2005-06; and 
B. 
By fiscal year 6999-l9 2006-07 the state share of the 
total cost of funding public education from kindergarten to 
grade 12, as described by essential programs and services, 
must be 55%. 
8e~~99~9~-~~-~~~-y&a~-~QQi-Q9-~-~-eae~ 
'iseal-~--~a~i~-~~~£~--yea~-~QQ~-~Q7-~~-s~a~e-~~-ef 
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iReFease--tewaFQ--t~e--§§%--level--Fe~~~FeQ--i9--fiseal--yeaF 
a999-19T 
Beginning 
in 
fiscal 
year 
2005-06 
and 
in 
each 
fiscal 
thereafter, 
the 
commissioner 
shall 
use 
the 
funding 
determined in accordance with this section as the basis 
recommended funding level for the state share of the cost 
components of essential programs and services. 
year 
level 
for a 
of the 
Sec. D-33. 20-A MRSA §15671, sub-§§2, 3, 4 and 6, as enacted by 
PL 2001, c. 660, §1, are amended to read: 
2. 
Per-pupil rate amounts. 
A per-pupil 
~~aFaRtee rate 
represents the an amount of funds that is to be made available 
for each subsidizable pupil. 
'i~Fee-~---p.up.i.,l-~J?ant.-ee--ame~Rts 
m~st-&e-£~.,l£~.,l~~€47-~~~~~~~~-~~~&~-Qiffe~eaee&~--ege 
'eF-~~~~~~~~~-~~aQe-i7-~-~~-~EaQeS-~-~-8-~~-'eF 
~FaQes-~~~-16r--~B€~€-~~~-~~a~aa~&-m~s~-~~~~ieG-as 
app~ep~iate--~e£--~~~~--~~-~~~r---~&e--pe~-p~pi± 
~~a~aR~ee-~~~~-~B€--aaa~a~-~-e~--&~ffi~-~-materia± 
~ese~~ees-~B~~-~~~~~~~&e~~-a**eeateQ-~-~-~~~~i~-9asisT 
Gate~e~ie&-~--&~affi~-~£--~~-aEe-~-fe*lews+ Per-pupil 
rates are determined pursuant to section 15676. 
A~--~~-~~~,-iae~~Gi~-Ee~~±aE-~~~~-s~9~eet 
teae~eFST-€4~£~~4&R~~-~~~~-~~r-~i&~a~~r-~ea±t~ 
seFvieesT-~~-aQmi9istFatie9T-~~-eF-~1~~~~-staff 
aRQ-S~9stit~te-teae~eFsT 
HOUSE AMENDMENT 
HOUSE AMENDMENT 'R" to CO~ITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
bT-----~€4a~4~€e----~~i~-----~~~a4~~----pFeEessieBa± 
eeve±epmeB~T---~&&&~~&~~~---~~~--~~~~7---S~QeeB~ 
assessmeB~T-~~~-aa4-€e€~~~4€~Ja~-~-eHtFaeQFFieQ±aF 
pFe,]FamSt-aBe 
gT--~~-~£4~~~~4¥€--QBit-~r~~r-~~~~-sys~em 
aQmiB~stFa~~eB-aBe-epera~~eB-aBe-ma~B~eBaBee-eE-p±aB~T 
3. 
Specialized student populations. 
In recognition that 
educational needs can be more costly for some student populations 
than for others, mee~E~ee-~~-~p4~-~~~~~~r-wei']atee 
PQP~±--~~--m~6~--~--€~€~~~~--~~r--~~~~--stQeeBt 
pepQ±at~eBS 
s~ecial 
student 
~opulations 
are 
specifically 
addressed in sections 
15675 
and 
15681-A, 
subsection 2. 
~ae 
spee~a±~see-stQeeB~-pepQ±at~eBs-te-ge-aeeressee-aFe+ 
4. 
Educational cost components outside per-pupil rate. 
A 
per-pupil ~QaFaB~ee ~ 
is not a suitable method for allocation 
of 
all 
educational 
cost 
components. 
These 
components 
may 
include, but are not limited to, debt service, transportation, 
bus purchases, vocational education, 
small school adjustments, 
teacher educational 
attainment 
and 
longevity of 
service 
and 
adjustments to general purpose aid. 
The funding methodology of 
these educational cost components must be established based on 
available research. 
6. 
Tarqeted funds. 
Funds for technology, assessment and 
the costs of additional investments in educating children in 
kindergarten to grade 2 as described in section 
15681 must be 
provided as targeted grants. 
School administrative units shall 
submi t 
a plan for the use of these funds 
and shall receive 
funding based on approval of the plan by the commissioner. 
Sec. D-34. 20-A MRSA §15671, sub-§7, as amended by PL 2003, c. 
712, §10, is further amended to read: 
7. 
Transition; annual tarqets. 
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 base total calculated pursuant to section 
15683, 
subsection 2 is subject to the following annual targets 
~er 
HOUSE AMENDMENT 
HOUSE AMENDMENT '11" to COMMITTEE AMENDMENT "A" to H. P. 6, L. D. 1 
Ehe-~~~~-~te~~affi6-~-6e~viee6-~~~~~~-~e~eeB~a~eT 
eHe±~eiB~-~~~-ee6~-~1~~~~--eeB~-~~~-a±±eea~ieB 
aBe-ae~~6~meB~6T-a~e-a6-fe±±ew6. 
(1) 
For fiscal year 2005-06, the target is 84%. 
(2) 
For fiscal year 2006-07, the target is 88% 100%. 
t9+--F~-~-~~-yea~-6GG9-±G-~£~-~~-yea~&r-~he 
~a~'Je~-is-;bGG% ... 
B. 
The annual targets for the state share percentage of the 
statewide adjusted total cost of the components of essential 
programs and services are as follows. 
(1) 
For fiscal year 2005-06, the target is 52.6%. 
(2) 
For fiscal year 2006-07, the target is 96 ... 9% 55%. 
t9+--F~-~~~~-yea~-6GG9-±G-~£~-~~-yea~&r-the 
~a~~et-is-99% ... 
Sec. D-35. 20-A MRSA §15671-A, as enacted by PL 
2003, c. 
712, §ll, is amended to read: 
§15671-A. Property tax contribution to pub1ic education 
1. 
Definitions. 
As 
used 
in 
context 
otherwise 
indicates, 
the 
following meanings. 
this section, 
unless 
following 
terms 
have 
the 
the 
A. 
"Funding public education from kindergarten to grade 12" 
means providing the cost of funding the essential programs 
and services described in this chapter 
~~~6, including the 
total allocations for pt9'Jtam-e96~ other subsidizable costs, 
debt service costs and adjustments. 
B. 
"Local cost share expectation" means the maximum amount 
of money for funding public education from kindergarten to 
grade 
that may be derived from property tax for the 
required local contribution established in section 15688, 
subsection -~- 3-11.. 
Page ll-LR0328(12) 
HOUSE AMENDMENT 
HOUSE AMENDMENT 'K" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
C. 
"Statewide total local share" means the local share, 
calculated on a statewide basis, of the statewide total cost 
of the components of essential programs and services as 
adjusted pursuant to section 15671, subsection 7 to reflect 
the application of the transition targets to the base total 
component. 
D. 
"Statewide valuation" means the certified total state 
valuation for the year prior to the most recently certified 
total state valuation for all municipalities statewide. 
2. 
Local cost share expectation. 
';I;ae - -lG-Ga-l- - -£-&6-t.-- saal'e 
eH~ee~a~~eB---~&--~~l~~--~---~ellewsT 
This 
subsection 
establishes 
full-value 
education 
mill 
rates 
that 
limit 
a 
municipaJ,ity' s 
regyired local contribytion pyrsyant to section 
15688, sybsection 3-A. 
The fyll-valye mill rates represent rates 
that, if applied to the statewide vahation, would produce the 
statewide total local share. 
Notwithstanding any other prov~s~on 
of law, with respect to the assessment of any property taxes for 
property tax years beginning 
on or after April 
1, 
2005, 
a 
municipality's regyired local contribution determined pursuant to 
section 15688, subsection 3-A establishes the local cost share 
expectation for that municipality. 
A. 
WeswisassaBeia~-aaY-~~-~~~~~--~r-w~~h-tespeet 
te-~~-a66e66mea~-~~-aay--~~~r~y--t.~~~--~&r-~~~~-EaH 
yeats-~~~~-et-~-t.~-~r~l--lT-~~-~~~-saaseesiea 
essaal~saes-~-~e€a~--ee&~-~~-eH~ee~a~4eB--~aa~-~-ee 
assessee-ea-~he-~~~-~~~~~~--~-~~r~~-e~-~aaeia~ 
paelie--~~~--~~--*~Baet~at~eB---t.~-~--±6T 
The 
commissioner 
shall annually by February 1st notify each 
school 
administrative 
unit 
of 
its 
local 
cost 
share 
expectation. 
Each 
superintendent 
shall 
report 
to 
the 
municipal officers whenever a school administrative unit is 
notified of the local cost share expectation or a change 
made in the local cost share expectation resulting from an 
adjustment. 
B. 
For property tax years beginning on or after April 1, 
2005, 
the 
commissioner 
shall 
calculate 
the 
full-value 
education mill rate that is required to raise the statewide 
total 
e~--t.lae local eest share eHpeetat;ieB. 
The full-value 
education mill rate is calculated for each fiscal year by 
dividing the applicable taH-yea£-~~~~--~-pFe}eetea 
eest;-~-~~~-~~&~~-eeaeat;ieB-~£~ffi-~~~~~~-~-~taae 
±6 statewide total local share by the eett~~ie&-~et;al-6~ate 
applicable statewide valuation 
~et--t-he--yea£--~r~r--t.~-tae 
mest--£eeea~~y---£e£-t.~~~~---t.~~--~~~--~~aa~~&--feF--a±± 
maBieipalities. 
The full-value education mill rate must 
Page l2-LR0328(12) 
HOUSE AMENDMENT 
HOUSE AMENDMENT .. ff· to COMMITTEE AMENDMENT .. A" to H. P. 6, L. D. 1 
decline over the period from fiscal year 2005-06 to fiscal 
year aQQ9-1Q 2006-07 and may not exceed 9.0 mills in fiscal 
year 2005-06 and may not exceed 8.0 mills in fiscal year 
aQQ9-1Q 2006-07. 
The full-value education mill rate must be 
applied according to section 15688, 
subsection --1-
3-A, 
paragraph A to determine a municipality's local cost share 
expectation. 
Full-value 
education 
mill 
rates 
must 
be 
derived according to the following schedule. 
(1) 
For the 2005 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 47.4% statewide total local share in fiscal year 
2005-06. 
(2) 
For the 2006 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 41T4% 
45°-& statewide total local share in fiscal 
year 2006-07. 
t6t--~~-~£€--b@@1-~~~~-~aK--yearr-~~-~~11-yal~e 
ea~ea~ieB-~~~--~B&-i6-~~-ame~B~-£€£~~a~Y-~~-re6~1~ 
iB-a-41TQ%-leeal-6aare-iB-~i6eal-year-aQQ1-QgT 
t4t--~~-~£€--b@@g-~~~~-~aK--yearr-~~-~~11-yal~e 
ea~ea~ieB-~~~--~B&-i6-~~-ame~B~-£€£€6~a~y-~~-re6~lE 
~B-a-49TQ%-leeal-6aare-iB-~i6eal-year-aQQg-Q9T 
t9t--~~-~£€--~@@9-~~~~-taK--yearr-~~-~~11-yal~e 
ea~ea~~eB-~~~--~B&-i6-~~-ame~B~-£€£€66a~y-~~-re6~1~ 
~B-a-49TQ%-leeal-6aare-iB-~~6eal-year-aQQ9-1QT 
• 
Exceeding 
maximum 
local 
cost 
share 
expectations; 
separate article. 
Beginning with the 2005-2006 school budget, 
the legislative body of a school administrative unit may adopt 
~Fe~eF~~-~aH-Ea~e6 an additional local appropriation that eHeee9 
exceeds the local cost share expectation established by section 
15688, subsection --l--
3-A, paragraph A only if that action is 
approved 
in 
a 
separate 
article 
by 
a 
vote 
of 
the 
school 
administrative unit's legislative body through the same process 
that the school budget is approved in that school administrative 
unit and in accordance with section 15690. 
If that additional 
appropriation causes the school administrative unit to exceed the 
maximum state and local spending target described in subsection 
4, the requirements of subsection 5 apply. 
4. Maximum state and local spending target. 
The maximum 
state and local spending target for a school administrative unit 
is the sum of the following costs calculated by the commissioner 
for the unit: 
HOUSE AMENDMENT 
HOUSE AMENDMENT "W' to CO~ITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
A. 
The base total calculated pursuant to section 15683, 
subsection 1 without the adjustment for transition targets 
under section 15671, subsection 7, paragraph A; 
B. 
Other subsidizable costs described in section l5681-A; 
and 
C. 
The debt service allocation pursuant to section 
15683-A. 
The commissioner shall annually notify each school administrative 
unit of its maximum state and local spending target. 
5. 
Exceeding maximum state and local spending target. 
If 
the 
sum 
of 
a 
school 
administrative 
unit's 
required 
local 
contribution determined pursuant to section 15688, subsection 3-A 
plus the state contribution as calculated pursuant to section 
15688, 
subsection 3-A, 
paragraph D plus any additional local 
amount 
proposed 
to 
be 
raised 
pursuant 
to 
section 
15690, 
subsection 3 exceeds the school administrative unit's maximum 
state 
and 
local 
spending 
target 
established 
pursuant 
to 
subsection 4, the following provisions govern approval of that 
additional amount. 
A. 
The article approving the additional amount must conform 
to 
the 
requirements 
of 
section 
15690, 
subsection 
3, 
paragraph B. 
Notwithstanding section 1304, 
subsection 6, 
section 
1701, 
subsection 
7, 
Title 
A, 
section 
2528, 
subsection 5, 
or 
any other provision of 
law, 
municipal 
charter 
provision 
or 
ordinance, 
voter 
approval 
of 
the 
article, whether in town meeting, district meeting or other 
voting process established by law, 
municipal charter or 
ordinance, including, but not limited to, any vote on the 
article initiated by voter petition, must be by referendum 
or written ballot. 
B. 
In a municipality where the responsibility for final 
adoption of the school budget is vested by the municipal 
charter in a council, this paragraph applies, except that 
the petition and referendum provisions apply only if the 
municipal charter does not otherwise provide for or prohibit 
a 
petition 
and 
referendum process 
with 
respect to 
the 
matters described in this paragraph. 
(1) 
A majority of the entire membership of the school 
board or committee must approve the additional amount 
in a regular budget meeting. 
( 2) 
An article approving the additional amount must 
conform 
to 
the 
requirements 
of 
section 
15690, 
Page l4-LR0328(12) 
HOUSE AMENDMENT 
HOUSE AMENDMENT "t-, to COMMITTEE AMENDMENT "A" to H. P. 6, L. D. 1 
subsection 3, paragraph B and be approved by a majority 
of the entire membership of the council in a vote taken 
in accordance with section 15690, subsection 5 or, if 
the council votes not to approve the article, by a 
majority 
of 
voters 
voting 
in 
a 
referendum 
called 
pursuant to subparagraph (4). 
(3) 
If an article is approved by the council pursuant 
to subparagraph (2), 
the voters may petition for 
a 
referendum vote on the same article in accordance with 
subparagraph (4). 
If a petition is filed in accordance 
with 
subparagraph 
(4), 
the vote of the council is 
suspended pending the outcome of the referendum vote. 
Upon 
approval of the article by 
a 
majority of the 
voters voting in that referendum, 
the article takes 
effect. 
If the article is not approved by a majority 
of the voters voting in that referendum, the article 
does 
not take effect. 
Subseguent to the vote, 
the 
schoQl 
committee 
or 
board 
may 
again 
propose 
an 
additional amount. subject to the reguirements of this 
section. 
(4) 
If a written petition, signed by at least 10'1-0 of 
the number of voters voting in the last gubernatorial 
election in the municipality, reguesting a vote on the 
additional 
amount 
is 
submitted 
to 
the 
municipal 
officers within 30 days of the council's vote pursuant 
to 
subparagraph 
(2), 
the article voted on 
by 
the 
council must be submitted to the legal voters in the 
next regular election or a special election called for 
the purJ?ose. 
The election must be called, advertised 
and 
conducted 
according 
to 
the 
law 
relating 
to 
municipal 
elections, 
except 
that 
the 
registrar 
of 
voters is not reguired to prepare or the clerk to post 
a new list of voters. 
For the purpose of registration 
of voters, the registrar of voters must be in session 
the secular day preceding the election. 
The voters 
shall indicate by a cross or check mark placed against 
the word "Yes" or "No" their opinion on the article. 
The results must be declared by the municipal officers 
and entered upon the municipal records. 
Sec. D-36. 20-A MRSA §15672, as amended by PL 2003, c. 712, 
§12, is further amended to read: 
§15672. Definitions 
As 
used 
in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
Page l5-LR0328(12) 
HOUSE AMENDMENT 
HOUSE AMENDMENT "t" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
1. 
Allocation year. 
"Allocation year" means the year that 
subsidy is distributed to school administrative units. 
I-A. 
Adjusted 
total 
cost 
of 
components 
of 
essential 
programs and services. 
"Adjusted total cost of the components of 
essential programs and services" means the total cost of the 
components of essential programs and services adjusted to reflect 
the application of the transition targets to the base total 
component as specified in section 15671, subsection 7, paragraph 
& 
I-B. 
Base year. 
"Base year" means the 2nd year prior to 
the allocation year. 
I-C. 
Bus purchase costs. 
"Bus purchase costs" includes 
expenditures for bus purchases approved by the commissioner and 
made during the year prior to the allocation year. 
2. 
Clerical 
staff. 
e~uivalent public 
school 
department's database. 
"Clerical 
staff" 
means 
full-time 
secretaries, 
as 
documented 
in 
the 
2-A. 
Debt service costs. 
"Debt service costs," for subsidy 
purposes, includes: 
A. 
Principal and interest costs for approved major capital 
projects in the allocation year, including the initial local 
shere of school con§truction projects that received voter 
approvel for all or part of their funding in referendum in 
fiscal year 1984-85, but excluding payments made with funds 
from state and local government accounts established under 
the 
federal 
Internal 
Revenue 
Code 
and 
regulations 
for 
disposition of excess, unneeded proceeds of bonds issued for 
a school project; 
B. 
Lease 
costs 
for 
school 
buildings 
when 
the 
leases, 
including leases under which the school administrative unit 
may apply the lease payments to the purchase of portable, 
temporary classroom space beginning January L 
1988, have 
been approved by the commissioner for the year prior to the 
allocation year. 
Beginning July 1, 1998 lease costs include 
costs for leasing: 
(1) 
Administrative 
space. 
A school 
administrative 
unit may lease administrative space with state support 
until 
July 
1, 
2003. 
A 
school 
administrative 
unit 
engaged 
in 
a 
lease-purchase 
agreement 
for 
administrative 
space 
is eligible 
for 
state 
support 
until July 1, 2008; 
HOUSE AMENDMENT 
HOUSE AMENDMENT "t-, to COMMITTEE AMENDMENT "A" to H,P, 6, L.D. 1 
(2) 
Temporary interim nonadministrative space. 
( a) 
A 
school 
administrative 
unit 
with 
state-approved 
need 
for 
nonadministrative 
space 
may 
lease 
temporary 
interim space, 
with state 
support, 
for 
a 
maximum 
of 
years. 
A school 
administrative unit may appeal to the state board 
if this limitation presents an undue burden. 
When 
making a determination on a school administrative 
unit's request for relief based on undue burden, 
the state board may consider, but are not limited 
to considering, the following: 
(i) 
Fiscal capacity; 
(ii) 
Enrollment demographics; and 
( iii) 
Unforeseen 
circumstances 
not 
within 
the 
control 
of 
the 
appealing 
school 
administrative unit. 
The state board's decision is final. 
(b) 
A school administrative unit engaged in a 
lease-purchase 
agreement 
for 
temporary 
interim 
nonadministrative 
space 
is 
eligible 
for 
state 
support for a maximum of 10 years; and 
(3) 
Permanent 
small 
nonadministrative 
space 
that 
replaces or is converted from existing approved leased 
portable space. 
The existing approved leased portable 
space will be eligible for state support until July 1, 
2003. Once an existing leased portable space has been 
converted 
into 
a 
permanent 
nonadministrative 
space 
through 
an 
approved 
lease-purchase 
agreement, 
that 
space is eligible for state support for a maximum of 10 
years. 
The department shall adopt rules necessary to implement this 
paragraph. 
Rules adopted by the department to implement 
this paragraph are major substantive rules pursuant to Title 
5, chapter 375, subchapter 2-A; 
C. 
The portion of the tuition costs applicable to the 
insured value 
factor 
for 
the 
base 
year 
computed 
under 
section 5806; and 
D. 
The 
cost of 
construction or 
purchase 
of portable, 
temporary classroom space as approved by the commissioner 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,,;I, to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
beginning 
January 
1, 
1988. 
For 
the 
purposes 
of 
this 
section, 
"portable, 
temporary 
classroom 
space" 
means 
a 
project 
consisting 
of 
one 
or 
more 
mobile 
or 
modular 
buildings that are at least partially constructed off site 
and are designed to be moved to other sites with a minimum 
of 
disassembly 
and 
reassembly. 
"Portable, 
temporary 
classroom space" includes, but is not limited to, space for 
regular 
classrooms, 
small 
group 
instruction, 
libraries, 
clinics 
and 
guidance 
and 
administrative 
office 
space, 
including 
principal 
and 
superintendent 
offices. 
The 
department shall adopt rules for approving the purchase, 
construction 
or 
lease-purchase 
of 
portable, 
temporary 
classroom space and for determining the amount includable 
for 
subsidy purp9ses. 
Lease-purchase 
agreements 
may 
not 
exceed a term of 10 years. 
Approved costs are those for 
the year prior to the allocation year. 
The department shall 
adopt rules necessary to implement this paragraph. 
Rules 
adopted by the department to implement this paragraph are 
major substantive rules pursuant to Title 5, chapter 375, 
subchapter 2-A. 
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 eguiyalent 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. 
Page l8-LR0328(12) 
HOUSE AMENDMENT 
HOUSE AMENDMENT .ff.: to COMMITTEE AMENDMENT "A" to H.P. 6. L.D. 1 
7. 
Elementary school 
level. 
means the grades from kindergarten 
kindergarten programs 
and 
2-year 
enrolling 4-year-old children prior 
"Elementary 
school 
level" 
to grade 5 and includes early 
childhood education programs 
to grade one. 
7-A. 
EPS per-pu,pil rate. 
"EPS per-pupil rate" means the 
rate calculated under section 15676 or 15676-A, as applicable. 
8. 
Essential programs and services. 
"Essential programs 
and 
services" 
means 
those 
educational 
resources 
that 
are 
identified in this chapter that enable all 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 
~~ •• -~~~~~-~e~-~~-~~~-p~e~~ame-~~r~~-Ee~ 
~ha~-~~~~~-~--&ha&-wi~~-~-~-By-~-~~~~&&~~~~&~&-e~ 
ay--a--re(f~4reel--1Q.o.a..1--eeB~r:iJ3~~~eB percentage of the base total 
calculated pursuant to section 15671, subsection 7, paragraph A. 
9-A. 
Gifted and talented costs. 
"Gifted 
and 
talented 
costs" 
means 
the 
cost 
of 
programs 
for gifted 
and 
talented 
students that have been approved by the commissioner. 
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 
eguiyalent public guidance counselors, directors of guidance or 
school social workers, as documented in the department's database. 
12. 
Health 
staff. 
eguiyalent 
public 
school 
department's database. 
"Health 
nurses, 
staff" 
means 
as 
documented 
full-time 
in 
the 
13. 
Hiqh school level. "High school level" means grade 9 to 
grade 12. 
13-A. 
Institutional 
resident. 
"Institutional 
resident" 
means a person between 5 years of age and 20 years of age who is 
attending a public school of the school administrative unit and 
who is committed or otherwise legally admitted to and residing at 
a state-operated institution. 
"Institutional resident" does not 
include students attending private facilities, regardless of the 
means of placement. 
~4Y--~-weiqh~.-~q~-we~~a~~-~-a-~1~-ae~weeB 
8ere-~-eBe-~~--i&-~~-B&-~e~~~~-~-m~Bie4~~~i~y~5-~~-~-e€ 
HOUSE AMENDMENT 
HOUSE AMENDMENT" ff. to CO~ITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
leeal-~~-~&~~-4a€effie-~~-~he-£~a~ewJ4e-~~-heQ6eae±S 
iaeeffieT--~~-~-wei~h~-~~£-~~-pFepeF~Y-~~7-~-se~iaes 
ia-6Qa6ee~iea-64T-ffiQ6~-~e~a±-eaeT 
15. 
Kindergarten to grade 
portion" means those pupils 
combination of the elementary 
level. 
portion. "Kindergarten to grade 
in the elementary grades or a 
school level and middle school 
16. 
Kindergarten to grade 
student. 
"Kindergarten to 
grade 
student" 
means 
a 
student 
in 
any 
grade 
from 
prekindergarten to grade 2 who is at least - -9-
.1 years old on 
October 15th of the school year. 
17. 
Librarian. 
public 
librarian or 
department's database. 
"Librarian" means 
media specialist, 
a full-time eg;uivalent 
as 
documented 
in the 
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. 
18-A. 
Major capital costs. 
"Major capital costs" means 
costs relating to school construction projects. as defined in 
section 15901. 
19. 
Media assistant. 
"Media assistant" means a full-time 
eg;uiva1ent 
public 
librarian 
aide 
or 
library 
technician 
I, 
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. 
At 
Minor capital costs. 
"Minor capital costs" means 
costs 
relating to 
plant maintenance. 
minor 
remodeling. 
site 
development or the purchase of land not in conjunction with a 
construction project. 
A. 
"Minor capital costs" does not include construction of 
new buildings or the purchase of land in conjunction with a 
school construction project. 
B. 
Expenditures to repay funds borrowed for minor capital 
expenditures must be considered minor capital costs in the 
year in which these funds are repaid. 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,,/l:to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
C. 
Purchase of land made in accordance with this subsection 
must be approved: 
(1) 
By 
the 
legislative 
body 
of 
the 
school 
administrative unit; and 
(2) 
By the commissioner, under rules adopted for this 
purpose. 
21. 
Municipality. 
"Municipality" means 
a 
city, 
town 
or 
organized plantation. 
21-A. 
Other subsidizable costs. 
"Other subsidizable costs" 
means those costs identified in section 15681-A. 
These costs are 
part of the total operating allocation under section 15683. 
B. 
Portable. 
temporary 
classroom 
space. 
"Portable, 
temporary classroom space" means one or more mobile or modular 
buildings that are at least partially constructed off site and 
that are designed to be moved to other sites with a minimum of 
disassembly and reassembly. 
;Z;Z ... --~.H:-- 4j1la£aa~ee ... - -'!.p.e.~j,.1- - ~~-e.e-!~- fI'le-aR-S- -tRe 
te~a.--~---e~--~~--~&a~--~£--~--a¥a4~aB~e--~~---eaeR 
6~B6~Q~Ba9.e-p~p~.-FepFe6ea~ia~-6Re-'e •• ewia~-ee6~-eempeaea~6+ 
ST--~~-~£4--Be&e~il::-~~-!e£-~I::~~-~~~~~~-seReel 
level-stafft 
A. 
Predicted per-pu,pil transportation costs. 
"Predicted 
per-pupil 
transportation 
costs" 
means 
the 
predicted 
transportation costs for a school eaministratiye unit based on 
the number of resident pupils. the number of miles of Class 1 to 
Class 
rOeds in the school administrative unit and approved 
adjustments. 
Approyed adjustments include e 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 for 
vocational 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. 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,,ff:. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
23. 
Property fiscal capacity. 
"Property fiscal capacity" 
means the certified state valuation affie~B~ for the year prior to 
the most recently certified state valuation. 
~4T---P£epeE~y--wei~h~~--~P£epe£~y--~~~-~--a--¥al~e 
ge~weeB-~~-aRQ-~B&-~~--is-~-~e--aG}~&~-~-m~Bieipali~y~s 
~a~ie--~---~~--F&~~~~~--p~epe~~y--~~~£a~--~it~--~--~Re 
s~a~ewiQe-~~~~-~~~~-~1&ea~-eapaei~YT-~~-~-wei~a~T 
as-Qe~~ReQ-~~~~-~r-pl~s-~h~-~~~~~~~~&~-~e~al 
eBe ... 
25. 
School administrative staff. 
staff" means full-time equivalent public 
assistant principals, as documented in the 
"School administrative 
school principals and 
department's database. 
26. 
School administrative unit's local contribution to EPS 
per-pupil rate. "School administrative unit's local contribution 
to the 
pe~-p~p1~-~i:ia£aB~ee EPS per-pupil rate" 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 EPS 
per-pupil rate. "School administrative unit's state contribution 
to the 
pe!=-p1ip1~-~i:ia£all~ee EPS per-pupil rate" 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. 
"School level teaching 
staff" 
means 
full-time 
equivalent 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. 
Secondary grades. 
"Secondary grades" means grade 9 to 
grade 12. 
30-A. 
Special education costs. 
"Special education costs" 
for subsidy purposes includes: 
A. 
The salary and benefit costs of certified professionals, 
assistants and aides or persons contracted to perform a 
special education service; 
B. 
The costs of tuition and board to other schools for 
programs that have been approved by the commissioner and not 
HOUSE AMENDMENT 
HOUSE AMENDMENT .~ 
to COMMITTEE AMENDMENT "A" to H. P . 6, L . D . 1 
QPid directly by the State. 
Medical costs are not allowable 
as part of a tuition charge; 
C. 
The following preschool handicapped services: 
(1) 
The 
salary 
and 
benefit 
costs 
of 
certified 
professionals, 
assistants 
and 
aides 
or 
persons 
contracted to perform preschool handicapped services 
that have been approved by the commissioner; and 
(2) 
The cost of tuition to other schools for programs 
that have been approved by the commissioner; and 
D. 
Special 
education 
costs 
that 
are 
the 
costs 
of 
educational 
services 
provided 
to 
students 
who 
are 
temporarily 
unable 
to 
participate 
in 
regular 
school 
programs. 
Students 
who 
may 
be 
included 
are 
pregnant 
students, hospitalized students or those confined to their 
homes for illness or injury, students involved in substance 
abuse programs within hospital settings or in residential 
rehabilitation facilities 
licensed by 
the 
Department 
of 
Health and Human Seryices, Office of Alcoholism and Drug 
Abuse Prevention for less than 6 weeks duration or students 
suffering 
from 
other 
temporary conditions 
that prohibit 
their attendance at school. 
Students served under this 
paragraph may not be counted as exceptional students for 
federal reporting purposes. 
B. 
State operated 
institution. 
"State operated 
institution" means any residential facility or institution that 
is operated by the Department of Health and Human Services or a 
school operated by the Department of Education. 
31. 
State share percentage. 
"State share percentage" means 
the percentage of the 
sam-~~-~~-~~~~~-~~-~ha~--~s 
p~ey~aea-ay-~-&~a~-app~9p~~a~~9B. Gtate cQntributign determined 
under section 15688, subsection 3, paragraph B divided by the 
total cost determined in section 15688, subsection 1. 
AT---Qpe£a~4R~--£~~~--~~~--~~~~r-~&--ee&er1&ee--~e 
se6t:~eB-1ge8~f 
8T--P£e~£am-£~~£-~~~~~-~~~~-~&-&ee~ieB-19aG8T 
s~9se6t:ieB-6f 
bT---Alle6at:ieBs--~9~--ae9t:--Se~yi6e--6est:sT--as--ae~iBea--ie 
se6t:ieB-1geg~T-s~9se6t:ieB-8f-aBa 
~T--~~~~~~~~--a~~-aaj~£~ffieR~£-~~~~~&-6est:s 
a~t:ae~iBea-~~~s~aBt:-t:e-se6t:iees-1ge16-aBa-1ge16T 
HOUSE AMENDMENT 
HOUSE AMENDMENT .~ to CO~ITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
31-A. 
State subsidy. "State subsidy" means the total of the 
state contribution determined under section 15688, 
subsection 
3-A, 
paragraph B and any applicable adjustment under section 
15689. 
31-B. 
Subsidizable costs. 
"Subsidizable costs" 
includes 
the costs described in paragraphs A to C and used to calculate 
the total allocation amount: 
A. 
The total operating allocation under section 15683: 
B. 
Debt service cost: and 
c. 
Adjustments and miscellaneous costs under sections 15689 
and 15689-1.. including special education tuition and board, 
Elxcluding medical costs. 
For purposEls of this paragraph, 
"special education tuition and board" means: 
(1) 
Tuition and board for pupils placed directly by 
the State in accordance with rules adopted or amended 
by the commissioner; and 
(2) 
Special education tuition and other tuition for 
institutional residents of state-oPElratEld institutions 
attElnding programs in school administrativEl units or 
private schools in accordance with rules adopted or 
amended by the commissioner. 
32. 
Subsidizable pupils. 
"Subsidizable pupils" means all 
school level pupils who reside in a school administrative unit 
and who are educated at public expense at a public school or at a 
private school approved for tuition purposes. 
32-A. 
Total allocation. "Total allocation" means the total 
of the operating allocation as described in sElction 15683 and the 
debt sElryicEl allocation as described in sElction 15683-1... 
Nonsubsidizable costs are not considered in the calculation of 
thEl 
total 
allocation. 
"Nonsubsidizable 
costs" 
includes 
the 
following: 
A. 
Community service costs; 
B. 
Major capital costs; 
C. 
Expenditures from all federal revenue sources, except 
for amounts received under United States Public Law 81-874; 
D. 
Transportation costs not associated with transporting 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,,*' to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
students from home to school and back home each day; and 
E. 
Costs payable to the Maine State Retirement System under 
Title 5, section 17154, subsections 10 and 11. 
32-B. 
Total cost of components of essential programs and 
services. 
"Total cost of the components of essential programs 
and services" means the total of the following components: 
A. 
The base total determined pursuant to section 15683, 
subsection 1; 
B. 
Other subsidizable costs identified in section 15681-A; 
C. 
Debt service costs; 
D. 
Adjustments determined pursuant to section 15689; and 
E. 
Miscellaneous costs appropriated pursuant to section 
l5689-A. 
32-C. 
Transportation 
operating 
costs. 
"Transportation 
.QP-erating costs" means all costs incurred in the transportation 
of pupils ip kindergarten tQ grRde 12, ipcluding leRse costs for 
bus garage and maintenance facilities and lease-purchase costs 
that the schoQl administrative unit may apply to the purchase of 
bus 
garage 
and maintenance 
facilities, 
when 
the 
leases 
and 
lease-purchase agreements have been approved by the commissioner~ 
but excluding the cQsts of bus purchases and excluding all costs 
not assQciated with transPQrting students frQm home to school and 
back home each day. 
The amount includable fQr determining the 
subsid,y fQr a school administrative unit fQr lease-purchase of 
bus garage and maintenance facilities may not exceed the amount 
for the lease of a comparable facility. 
32-D. 
Vocational education costs. 
"VocatiQnal 
education 
cQsts" 
fQr 
subsidy purpQses 
means all cQsts 
incurred by the 
VQcationRl regiQns, centers or satellites in providing approved, 
second,ary 
schQol 
vocational 
ed,ucatiQn 
programs, 
exclud,ing 
transportation, capital costs and debt service. 
32-E. 
Year. "Year" means a fiscal year starting July 1st 
and ending June 30th of the succeed,ing year. 
33. 
Year of funding. 
"Year of funding" means the 
year 
during 
which 
state 
subsidies 
are 
disbursed 
to 
administrative 
units, 
except 
as 
specified in section 
subsection 1. 
HOUSE AMENDMENT 
fiscal 
school 
15005, 
HOUSE AMENDMENT "ff. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D-37. 20-A MRSA §15673, as repealed and replaced by PL 
2003, c. 712, §13, is repealed. 
Sec. D-38. 20-A MRSA §15675, sub-§l, as enacted by PL 2003, c. 
504, Pt. A, §6, is amended to read: 
1. 
Limited English proficiency students. 
weights 
for 
school administrative units with 
proficiency students are as follows: 
The addi tional 
limited English 
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. 
Eligibility for state funds under this subsection is limited to 
school 
administrative 
units 
that 
are 
providing 
services 
to 
limited English proficient students through programs approved by 
the department. 
Sec. D-39. 20-A MRSA §15676, as enacted by PL 2003, c. 504, 
Pt. A, §6, is amended to read: 
§15676. 
EPS per-pupil rate 
For each school administrative unit, the commissioner shall 
calculate the unit' s 
peF-p1:ipi-l--~t\aFaR~ee EPS per-pupil rate 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. adjusted by the 
regional adjustment under section 15682 and reduced by the amount 
of funds received by the school administrative unit during the 
most recent fiscal year under Title 1 of the federal Elementary 
and Secondary Act of 1965. 20 United States Code, Section 6301 et 
~; 
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. 
adjusted 
by 
the 
regional 
adjustment under section 15682 and reduced by the amount of funds 
HOUSE AMENDMENT 
HOUSE AMENDMENT Iff:. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
received by the school administrative unit during the most recent 
fiscal year under Title 1 of the federal Elementary and Secondary 
Act of 1965, 20 United States Code, Section 6301 et seq.; and 
3. Additional costs. 
The per-pupil amounts not related to 
staffing, calculated in accordance with section 15680. 
The EPS per-pupil rate is calculated on the basis of which 
schools students attend. 
For school administrative units that do 
not 
operate 
their 
own 
schools, 
the 
EPS 
per-pqpil 
rate 
is 
calculated under section 15676-A. 
Sec. D-40. 20-A MRSA §15676-A is enacted to read: 
§15676-A. 
EPS per-pupil rate for units that do not operate 
schools 
1. 
Definitions. 
For 
purposes 
of 
this 
section, 
the 
following terms have the following meanings. 
A. 
"Receiving unit" means the school administrative unit to 
which students are sent by the sending unit. 
B. 
"Receiving unit cost" means the amoqnt arrived at by 
mqltiplying the receiving unit IS EPS rate by the number of 
students sent to that unit by the sending unit. 
C. 
"Sending unit" means 
the 
school 
administrative unit 
sending students to other school administrative units. 
2. 
Calcylation 
of 
EPS 
pgr-pupil 
rate. 
For 
school 
agm~nht[ati:ll~ qnit§ 
tbat 
QQ 
not 
QP~rat~ 
~ertg~n 
typ~§ of 
!2~bQQll2c 
tll~ 
~Q!!lmi§liiiQn~r 
shall 
cal~qlat~ 
that 
qnit'!2 
EPS 
p~r-pqpU rat~ fQr 
~a!;;h y~ar as fQllows. 
A. 
FQr qnits that dQ not operate elementary grade schools, 
the EPS per-pupil rate for elementary grades is calculated 
by mUltiplying the number of stqQentlii liient by the §ending 
qnit to an elementary grade receiving unit mqltiplied by the 
receiving unit IS EPS per-pupil rate for elementary grades 
anQ the result divided by the number Qf students sent by the 
sending unit to that elementary graQe receiving qni t. 
If 
the sending unit sends students to more than one elementary 
grade receiving unit. then the elementary grade receiving 
unit cost for each student sent by the sending unit is added 
and the result divided by the total number of students sent 
to elementary grade receiving units by the sending unit. 
The result is the average elementary grade EPS per-pupil 
rate for the sending unit. 
HOUSE AMENDMENT 
HOUSE AMENDMENT "ff. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
The 
EPS per-pupil rate for private schools approved for 
tuition purposes under chapter 117 is the statewide average 
EPS per-pupil rate for elementary grades. 
The elementary 
attending student count is the most recent October 1st count 
prior to the allocation year. 
B. 
For units that do not operate secondary grade schools, 
the EPS per-pupil rate for secondary grades is calculated by 
multiplying the number of students sent by the sending unit 
to 
a 
secondary 
grade 
rece~v~ng unit multiplied 
by 
the 
receiving unit's EPS per-pupil rate for secondary grades and 
the result divided by the number of students sent by the 
sending unit to that secondary grade receiving unit. 
If the 
sending unit sends students to more than one secondary grade 
receiving unit, then the secondary grade receiving unit cost 
for each student sent by the sending unit is added and the 
result divided by the total number of students sent to 
secondary grade receiving units by the sending unit. 
The 
result is the average secondary grade EPS per-pupil rate for 
the sending unit. 
~ EPS per-pupil rate for private schools approved for 
~ition purposes under chapter 117 is the statewide average 
~~S per-pupil rate for 
secondary grades. 
The 
secondary 
attending student count is the most recent October 1st count 
prior to the allocation year. 
Sec. D·41. 20·A MRSA §15678, sub·§5, ,B, as enacted by PL 
2003, c. 504, Pt. A, §6, is amended to read: 
B. 
The 
amount, 
as determined by 
the commissioner, 
that 
equals 
the 
statewide 
percentage 
of 
salary 
costs 
that 
represents the statewide average benefit costs. 
Sec. D·42. 20·A MRSA c. 606·C, headnote, as enacted by IB 2003, 
c. 2, §l, is repealed. 
Sec. D·43. 20·A MRS A §15681, as enacted by IB 2003, c. 2, 
§l, is repealed. 
Sec. D·44. 20·A MRSA §15681.A is enacted to read: 
§15681-A. 
Other subsidizable costs 
The following are other subsidizable costs: 
1. 
Bus purchases. 
Bus purchase costs: 
HOUSE AMENDMENT 
HOUSE AMENDMENT 'W to CO~ITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
2. 
Special 
education costs. 
Beginning 
in fiscal 
year 
2005-06. 
a 
school administrative unit receives 
an additional 
weight of at least 1.20 but not greater than 1.40 for each 
special education student identified on the annual December 1st 
child 
count 
as 
reguired 
by 
the 
federal 
Individuals 
with 
Disabilities Education Act for the most recent year. 
up to a 
maximum of 
15% 
of the school administrative unit's resident 
pupils as determined under section 15674. subsection I. paragraph 
C, 
subparagraph (1). 
For those school administrative units in 
which the annual December 1st child count for the most recent 
year 
is 
less 
than 
15% 
of 
the 
school 
administrative unit's 
resident pupils as determined under section 15674. subsection 1, 
paragraph C, subparagraph (1), the special education child count 
percentage may not increase more than 0.5% in any given year, up 
to 
a 
maximum of 1.0% in any given 3-year period. 
For each 
special 
education 
student 
above 
the 
15% 
maximum, 
the 
unit 
receives an additional weight of .38. In addition, each school 
administrative unit must receive additional funds: 
A. 
For 
lower staff-student ratios and expenditures 
for 
related services for school administrative units with fewer 
than 20 special education students identified on the annual 
December 
1st 
child 
count 
as 
reguired 
by 
the 
federal 
Individuals with Disabilities Education Act for the most 
recent year; 
B. 
For high-cost in-district special education placements. 
Aggitiopal 
funds 
must 
be 
allocateg 
for 
each 
student 
estimated to cost 3 times the statewide special education 
EPS per-pupil rate. 
The additional funds for each student 
must egual the amount by which that student's estimated 
costs exceed 3 times the statewide special education EPS 
per-pupil rate; 
c. 
For 
high-cost 
out-of-district 
special 
education 
placements. 
Additional funds must be allocated for each 
student estimated to cost 4 
times the statewide special 
education EPS per-pupil rate. 
The additional funds for each 
student must 
egual 
the 
amount 
by 
which that student's 
estimated 
costs 
exceed 
times 
the 
statewide 
special 
education EPS per-pupil rate; and 
D. 
To 
ensure the 
school administrative unit meets 
the 
federal 
maintenance 
of effort reguirement 
for 
receiving 
federal Individuals with Disabilities Education Act funds. 
The 
commissioner 
shall 
develop 
an 
appeals 
procedure 
for 
calculated special education 
costs 
for 
school 
administrative 
units; 
HOUSE AMENDMENT 
HOUSE AMENDMENT .1/< to COMMITTEE AMENDMENT "A" to H. P. 6, L. D • 1 
3. 
Transportation costs. 
For fiscal year 
2005 06, 
the 
commissioner, using information provided by a statewide education 
policy 
research 
institute, 
shall 
establish 
a 
per-pupil 
transportation cost for each school administrative unit based on 
an analysis of the most recent year's reported transportation 
expenditures and a predicted per-pupil transportation cost based 
on the number of resident pupils, the number of miles of Class 1 
to Class 
roads in the school administrative unit and any 
approved adjustments. 
In fiscal year 
2005-06 
the established 
per-pupil transportation cost for each school administrative unit 
is the most recent year's reported transportation expenditures or 
predicted per-pupil transportation cost, plus 10'lo, whichever is 
lower. Beginning in fiscal year 2006-07, and for each subse~uent 
fiscal year, the per-pupil transportation costs for each school 
administrative unit are its established costs for the most recent 
year adjusted by the Consumer Price Index or other comparable 
index. For fiscal years 2005-06 and 2006-07, in no case may the 
per-pupil transportation costs for a school administrative unit 
be less than 75°" of the established costs for the most recent 
fiscal year. 
Every 3 years, the commissioner, using information 
provided by 
a 
statewide education policy research institute, 
shall examine and may adjust reported transportation expenditures 
and 
predicted 
transportation 
costs. 
The 
commissioner 
shall 
develop 
an 
appeals 
procedure 
for 
established 
per-pupil 
transportation costs for school administrative units; 
4. 
Vocational education costs. 
Vocational education costs 
in tnt! base year adjusted to the year prior to the allocation 
year; and 
5. 
Gifted 
and 
talented 
education 
costs. 
Gifted 
and 
talented costs in the base year adjusted to the year prior to the 
allocation year. 
Sec. D-45. 20-A MRSA §15682, as enacted by IB 2003, c. 2, 
§l, is repealed. 
Sec. D-46. 20-A MRSA §15682, as enacted by PL 2003, c. 504, 
Pt. A, §6, is 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 
HOUSE AMENDMENT 
HOUSE AMENDMENT 'fr to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
calculated under section 15678 and salary and benefit costs of 
other school-level staff who are not teachers as calculated under 
section 15679. 
Beginning in fiscal year 2006-07, and at least 
every 2 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. 
Sec. D-47. 20-A MRSA §15683, as amended by PL 2003, c. 712, 
§14, is further amended to read: 
§15683. 
Tota1 operating a11ocation 
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 and including the 
total amount 
~eF-~-on--~ of other subsidizable costs as 
described in section 15681-A. 
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 peF-p'l:t!lJ..,l--q-1*a-Fa-a1::ee 
EPS per-pupil 
~ 
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 C; 
(2) 
The 
additional 
weight 
proficiency students 
calculated 
15675, subsection 1; and 
for 
limited 
pursuant 
to 
English 
section 
(3) 
The 
additional 
weight 
for 
economically 
to section 
disadvantaged students 
15675, subsection 2; 
calculated pursuant 
B. The product of the school administrative unit' s grade 9 
to 12 
peF-p1*pj,1--~'l:ia£aBt:ee EPS per-pupil rate 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 
proficiency 
students 
calculated 
15675, subsection 1; and 
for 
limited 
pursuant 
to 
English 
section 
HOUSE AMENDMENT 
HOUSE AMENDMENT 
to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(3) 
The 
additional 
weight 
for 
disadvantaged students 
15675, subsection 2; 
calculated pursuant 
economically 
to section 
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 
amount for targeted student assessment 
pursuant to section 15681, subsection 
the grade 9 to 12 portion of the pupil 
pursuant to section 15674, subsection 
subparagraph (1); 
level per-pupil 
funds calculated 
mul tiplied by 
count calculated 
1, paragraph C, 
D. 
If the 
school 
administrative unit is eligible 
for 
targeted 
technology 
resource 
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 
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 (1); 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); aae 
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 ,eF-,u,il-~QaFaatee 
EPS per-pupil rate multiplied by the additional weight for 
kindergarten to 
grade 
calculated pursuant 
to 
section 
15675, subsection 3T ; and 
HOUSE AMENDMENT 
HOUSE AMENDMENT .. ;1r.- to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
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 and approved by 
the state board. 
The ambunt 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. 
2. 
Adjustments. 
The 
base 
total calculated pursuant 
to 
subsection 1 must be adjusted as-Eellews by multiplying it by the 
appropriate 
transition percentage 
in 
accordance with 
section 
15671, subsection 7, paragraph A. 
AT-~~~-~e~al-~~~~~~~~~r~-~e-~~e€~~~-~-m~st 
ge-£eQ~eeQ-&y-~~~-~-~~~-~aG&-~~¥eG-&~-~ae-seaeel 
aQm~a~6~~a~~ye-~£J~-~--~~~~-~-~~-~~-~r&~-glemeatary 
aaQ-~€~£~~y-~~~~~-ef-l~e§7-~~~it~-S&aS&&-beQeT 
Seet~ea-eaQl-et-se~T-eH~ia~-tae-mest-teeeat-Eiseal-yeatT 
8T--~~-affieaa&-~~~~~~~-~~r&&aa&-~~-~r~~-A-~--be 
aejHstee--9y--&a&-~~~~-~}u&t~--~~~~--~e--seetieB 
Ue86T 
GT--~-ameQB~-~~1at~-p~~£~aR~--&&-~~~-g-~-be 
mHl~~pl~ee-By-~~~~~-~~~~aG-se~yiees-ttaasitieB 
peteeBta~e--Eet--tae--appteptia~e--yeat--ia--aeeeteaaee--with 
see~iea-1ge+1T-sHbseetieB-+T-pata~tapB-AT 
Sec. D·48. 20·A MRSA §15683, as enacted by IB 2003, c. 2, 
§1, is repealed. 
Sec. D·49. 20·A MRSA §15683·A is enacted to read: 
§15683-A. 
Total debt service allocation 
For each school administrative unit. that unit I s total debt 
service allocation is that unit I s debt service costs as defined 
in section 15672, subsection 2-A. 
Sec. D·50. 20·A MRSA §15684, as enacted by PL 2003, c. 712, 
§15 and IB 2003, c. 2, §1, is repealed. 
Sec. D·51. 20·A MRSA §15685, as enacted by PL 2003, c. 504, 
Pt. A, §6 and IB 2003, c. 2, §1, is repealed. 
HOUSE AMENDMENT 
HOUSE AMENDMENT "If:. to CO~ITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D-52. 20-A MRSA §15686, as amended by PL 2003, c. 712, 
§16, is further amended to read: 
§l5686. 
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 adverse fiscal impact that 
may be experienced by some municipalities as a result of the 
phase-in 
of 
this 
Act. 
The 
transition 
adjustment 
for 
a 
municipality 
must 
be 
directly 
related 
to 
the 
phase-in 
of 
essential 
programs 
and 
services 
and 
the 
local 
cost 
share 
expectation method under section 15671-A of determining the local 
contribution to 
the 
cost of 
funding 
essential programs 
and 
services. 
The amount of this adjustment must decline with each 
successive fiscal year, and the adjustments must end no later 
than fiscal year 6999-19 2006-07. 
1. 
Adjustmgnt 
in 
fiscal 
year 
2005-06. 
A 
school 
,gdministrative unit is eligible for a transition adjustment in 
USQ.§,l yea, aOOS-Og if the scbool 
Agmin~~trative unit meets the 
following criteria. 
A. 
The school administrative unit's state share of the 
total 
allocation, 
including the 
debt 
service 
adjustment 
pursuant to section 
15689, subsection 2, 
and the minimum 
state share of its total allocation pursuant to section 
15689, subsection 1 is less than the fiscal year 2004-05 
state share of its total allocation, including the minimum 
state share of its total allocation pursuant to 
former 
section 
15689, 
subsection 
and 
the 
adjustment 
for 
geographic isolation pursuant to section 15612, subsection 
2. 
The state share adjustment is an amount equal to that 
difference less the losses due to reduced expenditures for 
buses, debt service, special education, gifted and talented 
education and vocational education. 
A school administrative unit that meets the criteria in paragraph 
A is eligible to receive no less than a 5% transition adjustment 
in fiSCAl year 2005-06 if the school administrative unit operates 
an elementary or secondary school and also has a student count of 
less than It 000. 
A school administrative unit that meets the criteria in paragraph 
A is 
eligible 
to 
receive 
no 
less 
than 
a 
2.5% 
transition 
adjustment in fiscal year 2005-06 if the school administrative 
unit operates an elementary or secondary school and also has a 
student count of more than 1,000. 
HOUSE AMENDMENT 
HOUSE AMENDMENT "ff:. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D-53. 20-A MRSA §15688, sub-§l, "A to C, as enacted by PL 
2003, c. 712, §17, are amended to read: 
A. 
The 
school administrative unit's ~ 
total 
ees~--ef 
fQBaiB~--esseB~ia~--p~e~~ams--aBa--se~viees--sQa~ee~--~e--~ae 
~~aBsi~ieB-pe~eeB~a~es calculated pursuant to section 15683, 
subsection L 
adjusted pursuant to the transition targets 
described in section 15671, subsection 7, paragraph A; 
B. 
The p~e~~am-€e5~-~~~~~~~~-~-ehap&et-9G9 other 
subsidizable costs described in section 15681-A; and 
C. 
The total debt service allocation as-QSea-iB-€aap~e~-aG9 
described in section 15683-A. 
Sec. D-54. 20-A MRSA §15688, sub-§2, as enacted by PL 2003, c. 
712, §17, is amended to read: 
2. 
Member municipalities in school administrative districts 
or 
community 
school 
districts; 
total 
costs. 
For 
each 
municipality that is a member of a school administrative district 
or community school district, the commissioner shall annually 
determine 
each 
municipality's 
total 
cost 
of 
education. 
A 
municipality's 
total 
cost 
of 
education 
is 
the 
school 
administrative district's or community school district's total 
cost of 
fQRaiR~ education multiplied by the percentage that the 
municipality's most recent calendar year average pupil count is 
to 
the 
school 
administrative district's or 
community 
school 
district's most recent calendar year average pupil count. 
Sec. D-55. 20-A MRSA §15688, sub-§3, as enacted by PL 2003, c. 
712, §17, is repealed. 
Sec. D-56. 20-A MRSA §15688, sub-§3-A is enacted to read: 
A. 
School administrative unit: contribution. 
For each 
school 
administrative 
unit, 
the 
commissioner 
shall 
annually 
determine the school administrative unit's reguired contribution, 
the reguired contribution of each municipality that is a member 
a f 
the uni t, if the uni t 
has mo re than one membe r , 
and the 
State's contribution to the unit's total cost of education in 
accordance with the following. 
A. 
For a school administrative unit composed of only one 
municipality, 
the 
contribution 
of 
the 
unit 
and 
the 
municipality is the same and is the lesser of: 
(1) 
The total cost described in subsection 1: and 
HOUSE AMENDMENT 
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(2) 
The total of the full-value education mill rate 
calculated in section l567l-A, subsection 2 multiplied 
by the property fiscal capacity of the municipality. 
B. 
For a school administrative district or community school 
district 
composed 
of 
more 
than 
one 
municipality, 
each 
municipality's contribution to the total cost of education 
is the lesser of: 
(1) 
The municipality's total cost as described in 
subsection 2; and 
(2) 
The total of the full-value education mill rate 
calculated in section 15671-A, subsection 2 multiplied 
by the property fiscal capacity of the municipality. 
C. 
For a school administrative district or community school 
district composed of more than one municipality, the unit's 
contribution to the total cost of education is the lesser of: 
(1) 
The total cost as described in subsection 1; and 
(2) 
The sum of the totals calculated for each member 
municipality pursuant to paragraph B, subparagraph (2). 
D. 
The state contribution to the 
school administrative 
unit's 
total 
cost 
of 
education 
is 
the 
total 
cost 
of 
egUQAt~Qn 
QAlQM1~ted 
p~rSuAnt to 
subsection 
less 
the 
SCb9Ql 
adm~niQtratiye 
ynit's 
Q9ntribytion 
calQylated 
pyrsyant to paragraph A or C, 
as applicable. 
The state 
contribution is subject to reduction in accordance with 
section 15690, subsection 1, paragraph C. 
Sec. D-57. 20-A MRSA §15688, sub-§4, as enacted by PL 2003, c. 
712, §17, is amended to read: 
4. 
Method of cost sharing; exception. 
For the purpose of 
local cost sharing, the provisions of subsection -~-
3-A do not 
apply 
to 
municipalities 
that 
are 
members 
of 
a 
school 
administrative district or a community school district whose cost 
sharing formula was established pursuant to private and special 
law prior to January 1, 2004. 
For each municipality that is a 
member of a school administrative district or a community school 
district whose cost sharing formula was established pursuant to 
private and special 
law prior to January 1, 
2004, 
the cost 
sharing formula established pursuant to private and special law 
determines each municipality's local cost of education. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT '~to COMMITTEE AMENDMENT "A" to H, P , 6, L, D , 1 
Sec. D-58. 20-A MRSA §15689, sub-§l, as enacted by PL 2003, c. 
712, §17, is repealed and the following enacted in its place: 
1. 
Minimum state allocation. 
Each school administrative 
unit must be guaranteed a 
minimum 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 
unit's 
essential 
programs 
and 
services 
per-pupil 
elementary 
rate 
by 
the 
average 
number 
of 
resident 
kindergarten to grade 
pupils as 
determined 
under 
section 15674, subsection L 
paragraph C, subparagraph 
(1); and 
(2) 
MUltiplying 
5% 
of 
each 
school 
administrative 
unit'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 
B. 
The school administrative unit's special education costs 
as 
calculated pursuant to section 15681-A, 
subsection 2 
multiplied by the following transition percentages: 
(1) 
In fiscal year 2005-06, 84%; and 
(2) 
In fiscal year 2006-07, 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. 
Sec. D-59. 20-A MRSA §15689, sub-§3, as enacted by PL 2003, c. 
712, §17, is amended to read: 
3. 
Adjustment limitations. 
The amounts of the adjustments 
paid 
to 
school 
administrative 
units 
or 
municipalities 
3:R 
sl:lBseet.isRs--l--an<i-6 pursuant to this section are limited to the 
amounts appropriated by the Legislature for these adjustments. 
Sec. D-60. 20-A MRSA §15689, sub-§§4 to 6 are enacted to read: 
4. 
Audit adjustments. 
The following provisions apply to 
audit adjustments. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "~-to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
A. 
If errors are revealed by audit and by the commissioner, 
the 
school 
administrative unit's state 
subsidy must 
be 
adjusted to include corrections. 
B. 
If audit adjustments are discovered after the funding 
level is certified by the commissioner and the state board 
on December 15th pursuant to section l5689-C, the department 
may reguest the necessary additional funds, if any, to pay 
for 
these 
adjustments. 
These 
amounts, 
if any, 
are 
in 
addition to the audit adjustment amount certified by the 
commissioner and state board on the prior December 15th. 
5. 
Adjustment for cost of educating eligible students in 
lQng-term drug treatment centers. 
A school administrative unit 
that operates an educational program approved pursuant to chapter 
to serve eligible students in licensed drug treatment centers 
must be reimbursed in the year in which costs are incurred as 
follows. 
A. 
Reimbursements must be limited to a maximum of 12 state 
average tuition rates a year for each approved plan. 
B. 
The rate of reimbursement per student may not exceed the 
state average tuition rates in effect during the year of 
placement as computed under sections 5804 and 5805. 
The 
tuition rates must be computed based on the state average 
secondary tuition rate and may be adjusted if the program is 
approved to operate beyond the 180-day school year. 
6. 
Adjustment for uncertified personnel. 
The commissioner 
shall reduce the state share of the total allocation to a school 
administrative unit in the current year or following year by an 
amount 
that represents 
the 
state share 
of 
expenditures 
for 
salaries and benefits paid to uncertified personnel. 
Sec. D-61. 20-A MRSA §§15689-A to 15689-F are enacted to read: 
§15689-A. 
AuthQrization Qf payment of miscellaneous CQsts 
1. 
Payment Qf state agency client CQsts. 
State agency 
client costs are payable pursuant to this subsection. 
As used in 
this subsection, "state agency client" has the same meaning as 
defined in section 1, subsection 34-A. 
A. 
The commissioner shall approve special education costs 
and supportive services, including transportation, for all 
state agency clients placed in residential placements by an 
authorized agent of a state agency. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "t to COMMITTEE AMENDMENT "A" to H.P. 6. L.D. 1 
B. 
Special education costs authorized by this sUbsection 
for state agency clients must be paid by the department in 
the allocation year at 100% of actual costs. 
C. 
The 
commissioner 
shall 
pay 
only 
approved 
special 
education 
costs 
and 
supportive 
services, 
including 
transportation, 
authorized 
by 
this 
subsection for 
state 
agency clients 
and 
may 
not 
allocate for 
those 
special 
education 
costs 
and 
supportive 
services, 
including 
transportation, incurred by the school administrative unit 
for state agency clients in the base years starting July 1, 
1985, and every base year thereafter. 
D. 
Transportation costs for state agency clients, 
when 
provided 
in 
accordance 
with 
rules 
established 
by 
the 
commissioner 
under 
section 
7204, 
must 
be 
paid 
by 
the 
department in the allocation year at 100% of actual costs. 
2. 
Education of institutional residents. 
The commissioner 
may pay tuition to school administrative units or private schools 
for institutional residents within the limits of the allocation 
made under this section. 
3. 
Essential programs 
and services components contract. 
The commissioner may contract for the updating of the essential 
programs 
and 
services 
component 
with 
a 
statewide 
education 
research institute. 
4. 
Learning 
results 
implementation, 
assessment 
and 
accountability. 
The commissioner may expend and disburse funds 
limited to the amount appropriated by the Legislature to carry 
out the purposes of Public Law 1995, chapter 649, sections 5 and 
.a... 
5. 
Regionalization, 
consolidation 
and 
efficiency 
assistance. 
The 
commissioner 
may 
expend 
and 
disburse 
funds 
limited to the amount appropriated by the Legislature to carry 
out the purposes of promoting regionalization, consolidation and 
efficiency. 
6. 
Education 
research 
contract. 
The 
commissioner 
may 
contract for the compilation and analysis of education data with 
a statewide education research institute. 
7. 
Disbursement 
limitations. 
The 
funds 
disbursed 
in 
accordance 
with 
this 
section 
are 
limited 
to 
the 
amounts 
appropriated by the Legislature for these purposes. 
HOUSE AMENDMENT 
HOUSE AMENDMENT ffr to COMMITTEE AMENDMENT "A" to H.P. 6. L.D. 1 
§15689-B. 
Authorization and schedules of payment of state 
subsidy; appeals 
1. 
Schedules 
of 
payment 
of 
unit 
allocation. 
The 
commissioner shall authorize state subsidy payments to the school 
administrative units to be made in accordance with time schedules 
set forth in sections 15005, l5689-D and 15901 to 15910. 
2. 
Notification 
of 
allocation; 
commissioner's 
duty; 
superintendent's 
duty. 
The 
following 
provisions 
apply 
to 
notification 
of 
allocation 
by 
the 
commissioner 
and 
each 
superintendent. 
A. 
The commissioner shall annually, prior to February 1st, 
notify each school board of the estimated amount to be 
allocated to the school administrative unit. 
B. 
Each 
superintendent 
shall 
report 
to 
the 
municipal 
officers whenever the school administrative unit is notified 
of the allocation or a 
change is made in the allocation 
resulting from an adjustment. 
3. 
PA!JII~nts of state subsidy to unit's treasurer; basis. 
State subsidy payments must be made directly to the treasurer of 
each school administrative unit. The payments must be based on 
audited financial 
reports 
submitted 
by 
school 
administrative 
units. 
4. 
Appeals. A school board may appeal the computation of 
state subsidy for the sCbQQl administrative unit tQ the state 
bQard in wriUng within 30 days Qf the date of notification of 
the cQmputed 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 egpense requirement. Notwithstanding any 
other law, money allocated for school purposes may 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 unit's needs in the next year or over a period not to exceed 
years. 
Unallocated balances in excess of 3°'\> of the previous 
fiscal year's school budget must be used to reduce the state and 
local share of the total allocation for the purpose of computing 
state 
subsidy. 
School 
boards 
may 
carry 
forward 
unallocated 
balances in excess of 3% of the previous year's school budget and 
HOUSE AMENDMENT 
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HOUSE AMENDMENT '~to COMMITTEE AMENDMENT .. A" to H. P . 6, L . D . 1 
disburse these funds in the next year or over a period not to 
exceed 3 years. 
7. 
Required data: 
subsidy payments withheld. 
A school 
administrative 
unit 
shall 
provide 
the 
commissioner 
with 
information that the 
commissioner 
reguests to carry out the 
purposes of this chapter, according to time schedules that the 
commissioner establishes. 
The commissioner may withhold monthly 
subsidy 
payments 
from 
a 
school 
administrative 
unit 
when 
information is 
not 
filed in the 
specified 
format 
and 
with 
specific content and within the specified time schedules. 
8. 
Unobligated balances. 
Unobligated balances from amounts 
appropriated for general purpose aid for local schools may not 
lapse but must be carried forward to the next fiscal year. 
§15689-C. 
Commissioner's recommendation for funding levels: 
computations 
1. 
Annual reCOmmendation. Prior to December 15th of each 
year. the commissioner. with the approval of the state board, 
shall 
recommend 
to 
the 
Governor 
and 
the 
Department 
of 
Administratiye and Financial Services. Bureau of the Budget the 
funding levels that the commissioner recommends for the purposes 
of this chapter. 
2. 
Funding 
level 
computations. 
The 
following 
are 
the 
funding 
level 
computations 
that 
support 
the 
commissioner's 
funding level recommendations: 
A. 
The 
reguested 
funding 
levels 
for 
the 
operating 
allocation under section 15683; 
B. 
The reguested funding levels for debt service under 
section l5683-A. which are as follows: 
(1) 
The known obligations and estimates of anticipated 
principal and interest costs for the allocation year; 
(2) 
The expenditures for the insured value factor for 
the base year; 
(3) 
The level of lease payments and lease-purchase 
payments pursuant to section 15672, subsection 2-A for 
the year prior to the allocation year; and 
(4) 
Funds allocated by the state board for new school 
construction projects funded in the current fiscal year; 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ,,*' t~ COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
C. 
The 
reguested 
funding 
levels 
for 
adjustments 
under 
section 15689, which must be computed by estimating costs 
for the allocation year: and 
D. 
The reguested funding levels for miscellaneous costs 
under section l5689-A. 
3. 
Guidelines for updating other subsidizable costs. 
The 
commissioner's recommendation for updating percentages to bring 
base year actual costs to the eguivalent of one-year-old costs 
may not exceed the average of the 2 most recent percentages of 
annual increase in the Consumer Price Index. 
§15689-D. 
Governor's recommendation for funding levels 
The 
Department of Administratiye and Financial Services, 
Bureau of the Budget shall annually certify to the Legislature 
the funding levels that the Governor recommends under sections 
15683, 
15683-A, 
15689 
and 
15689-A. 
The 
Governor's 
recommendations must be transmitted to the Legislature within the 
time schedules set forth in Title 5, section 1666. 
§15689-E. 
Actions by Legislature 
The Legislature shall annually, prior to March 15th, enact 
legislation to: 
1. 
Appropriation for 
state share of adjustments, 
debt 
service and operating: single account_ 
Appropriate the necessary 
funds for the State's share for general purpose aid for local 
schools 
with 
a 
separate 
amount 
for 
each 
of 
the 
following 
components: 
A. 
Adjustments 
and 
miscellaneous 
costs 
described 
in 
sections 15689 and l5689-A, including an appropriation for 
special education pupils placed directly by the State, for: 
(1) Tuition and board for pupils placed directly by the 
State in accordance with rules adopted or amended by 
the commissioner: and 
(2) 
Special education tuition and other tuition for 
residents 
of 
state-operated 
institutions 
attending 
programs 
in 
school 
administrative units 
or private 
schools in accordance with rules adopted or amended by 
the commissioner: and 
B. 
The state share of the total operating allocation and 
the total debt service allocation described in sections 
15683 and 15683-A: and 
HOUSE AMENDMENT 
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HOUSE AMENDMENT .;1<- to COMMITTEE AMENDMENT "A" to H.P. 6. L.D. 1 
2. 
Local cost share expectation. 
Establish the local cost 
share expectation described in section 15671-A. 
Funds for appropriations under this section must be placed 
in a single account. 
§15689-F. Actions by department 
Within 
the 
annual 
appropriations, 
the 
department 
shall 
follow the procedures described in this section. 
1. 
State's obligation. 
If the State's continued obligation 
for any program provided by one of the appropriated amounts under 
section lS6&9-E 
nc~~ds the apP;-Qpriated amQunt, any unexpended 
balance from another of those appropriated amounts may be applied 
by the commissioner toward the obligation for that program. 
2. 
Cash 
flow. 
For 
the 
purpose 
of 
cash 
flow, 
the 
cQmmissioner 
may pay the full state and local share of the 
payment amounts due on bond issues for schoQl construction from 
that 
schoQl 
administrative 
unit's 
state 
subsidy, 
excluding 
payments on non-state-funded projects. 
This subsection dQes not 
apply if a school administrative unit has less subsidy than the 
total principal and interest payment on bonds. 
Sec. D-62. 20-A MRSA §§15690 to 15695 are enacted to read: 
§15690. Local appropriations 
Beginning with the budget for the 2005-2006 school year, the 
follQwing provisions apply to local appropriations for school 
purposes. 
1. 
School administrative unit contribution to total cost of 
funding public education from kindergarten to grade 12. 
The 
legislative bQdy of each schQQl administrative unit may vQte to 
raise and appropriate an amount up to its required contribution 
to the total cost of education as described in section 15688. 
A. 
For a municipal school unit, an article in substantially 
the following form must be used when 
a 
single municipal 
school administrative unit is considering the appropriation 
of an amount up to its required contribution to the total 
cost of education as described in section 15688. 
(1) 
"Article ..... : 
To see what 
sum the municipality 
will appropriate for the school administrative unit's 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
HOUSE AMENDMENT 
~~ 
HOUSE 
AMENDMENT 't-' to COMMITTEE AMENDMENT "A" to H. P. 6, L. D . 1 
the 
Essential 
Programs 
and 
Services 
Funding 
Act 
(Recommend 
$ ...... ) 
and 
to 
see 
what 
sum 
the 
municipality 
will 
raise 
as 
the 
municipality's 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs 
and Services Funding Act in 
accordance with the Maine Revised Statutes, Title 20-A, 
section 15688. (Recommend $ ....•• )" 
(2) 
The following statement must accompany the article 
in 
subparagraph 
(1). 
"Explanation: 
The 
school 
administrative unit's contribution to the total cost of 
funding public education from kindergarten to grade 12 
as described in the Essential Programs 
and Services 
Funding Act is the amount of money determined by state 
law to be the minimum amount that a municipality must 
raise in order to receive the full amount of state 
dollars." 
B. 
For 
a 
school administrative district or a 
community 
school district. an article in substantially the following 
form must be used when the school administrative district or 
community school district is considering the appropriation 
of an amount up to its reg:uired contribution to the total 
cost of education as described in section 15688. 
(1) 
"Article .... : To see what sum each municipality 
will appropriate for the school administrative unit's 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs and Services Funding Act and to 
see what 
sum 
each municipality will raise as 
each 
municipality's 
contribution 
to 
the 
total 
cost 
of 
funding public education from kindergarten to grade 12 
as described in the Essential Programs 
and Services 
Funding 
Act 
in 
accordance 
with 
the 
Maine 
Revised 
Statutes. Title 20-A, section 15688 (Recommends): 
Total cost by 
municipality 
Town A ($amount) 
Town B ($amount) 
Town C (;!1amount} 
School District 
Total ($sum of above} 
Municipal local 
contribution 
Town A (;!1amounU 
Town B (;!1amount) 
Town C (;!1amount} 
School District 
Total 
(;!1sum 
of 
above}" 
HOUSE AMENDMENT 
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~ 
.,,~\ 
HOUSE AMENDMENT .tJ-- to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(2) 
The following statement must accompany the article 
in 
subparagraph 
(1). 
"Explanation: 
The 
school 
administrative unit's contribution to the total cost of 
funding public education from kindergarten to grade 12 
as described in the Essential Programs and Services 
Funding Act is the amount of money determined by state 
law to be the minimum amount that each municipality 
must raise in order to receive the full amount of state 
dollars." 
C, 
The state share of the total cost of funding public 
Silgucation from kindergarten to grade 
as ducribSild in 
section 15688. excluding state-funded debt service for each 
school 
administrative 
unit, 
is 
limited 
to 
the 
same 
proportion as the local school administrative unit raises of 
its required contribution to the total cost of education as 
described in section 
15688, 
excluding state-funded debt 
service costs. 
2. 
Non state funded 
debt 
service. 
For 
each 
school 
agministratiye 
unit's 
contribution 
to 
debt 
service 
for 
non-state-funged major capital school construction projects or 
non-state-fungeg portions of major capital school construction 
projects. the legislative bogy of each school administrative unit 
may 
vote 
to 
raise 
and 
appropriate 
an 
amount 
up 
to 
the 
municipality's or gistrict's annual payments for non-state-funged 
debt service. 
A. 
An article in substantially the following form must be 
used when a school administrative unit is considering the 
appropriation 
for 
debt 
service 
allocation 
for 
non state funded 
school 
construction 
projects 
or 
non-state-funged portions of school construction projects. 
(1) 
"Article ..... To see what sum the (municipality 
or gistrict) will raise for the annual gebt service 
payments 
on 
a 
non-state-fundeg 
school 
construction 
project 
or 
non-state-funded 
portion 
of 
a 
school 
construction 
project 
in 
addition 
to 
the 
funds 
appropriated 
as 
the 
local 
share 
of 
the 
school 
administrative unit's contribution to the total cost of 
funging public education from 
kindergarten to grade 
12. 
(Recommend $ •••••• ) " 
(2) 
The following statement must accompany the article 
in subparagraph 
(1). 
"Explanation: 
Non-state-funded 
debt service is the amount of money needed for the 
annual payments on the (municipality's or district's) 
long-term debt for major capital school construction 
HOUSE AMENDMENT 
'£'1:1' 
~ 
~ 
HOUSE AMENDMENT if, to COMMITTEE AMENDMENT "A" to H,P, 6, L.D. 1 
that is not approved for state subsidy. The bonding of 
this long-term debt was approved by the voters on (date 
of original referendum)." 
3. 
Additional local appropriation. 
A school administrative 
unit may raise and expend funds for educational purposes in 
addition to the funds under subsections 1 and 2. 
A. 
If the amount of the additional funds does not result in 
the unit's exceeding its maximum state and local spending 
target established pursuant to section l567l-A, subsection 
4, an article in substantially the following form must be 
used when a school administrative unit is considering the 
appropriation of additional local funds: 
(1) 
"Article .... : To see what sum the (municipality 
or district) will raise and to appropriate the sum of 
(Recommend $ ..••. ) in additional local funds for school 
purposes under the Ma~ne Revised Statutes, Title 20-A, 
section 15690. (Recommend $ .•...• )" 
(2) 
The following statement must accompany the article 
in 
subparagraph 
(1) • 
"Explanation: 
The 
additional 
local funds are those locally raised funds over and 
above 
the 
school 
administrative 
unit's 
local 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs and Services Funding Act and 
local 
amounts 
raised 
for 
the 
annual 
debt 
service 
payment 
on 
non-state-funded 
school 
construction 
projects or the non-state-funded portion of a school 
construction 
project 
that 
will 
help 
achieve 
the 
(municipality's or district's) budget for educational 
programs." 
B. 
If the amount exceeds the unit's maximum state and local 
spending target established pursuant to section l567l-A, 
subsection 4. an article in substantially the following form 
must 
be 
used 
when 
a 
school 
administrative 
unit 
is 
considering an appropriation of additional local funds. 
(1) 
"Article .... : 
Shall 
(name of municipality or 
district) raise and appropriate $....... in additional 
local 
funds, 
which 
exceeds 
the 
State's 
Essential 
Programs and Services funding model by $ •.•••• ?" 
The (school committee or board of directors) recommends 
$ .•.•..... for the following reasons: (state reasons) 
HOUSE AMENDMENT 
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~,$;i" 
t' ... 
HOUSE AMENDMENT "If:. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. I 
(2) 
The following statement must accompany the article 
in 
subparagraph 
(1) . 
"Explanation: 
The 
additional 
local funds are those locally raised funds over and 
above 
the 
school 
administrative 
unit's 
local 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs and Services Funding Act and 
local 
amounts 
raised 
for 
the 
annual 
debt 
service 
payment 
on 
non-state-funded 
school 
construction 
projects or the non-state-funded portion of a school 
construction 
project 
that 
will 
help 
achieve 
the 
(municipality's or district's) budget for educational 
programs." 
4. 
Total budget article. 
A school administrative unit must 
include a summary article indicating the total annual budget for 
funding public egucation from kindergarten to grade 12 in the 
school administrative unit. 
The amount recommended must be the 
gross budget of the school system. This article goes not provide 
money unless the other articles are approved. 
A. 
"Article .•.. ! 
To see what sum the (municipality or 
district) will authorige the school committee to expeng for 
tb~ U~ca,l ye~l: beg.i,nn.i,ng (J.uly 1. 
•• '.) a,nd enging (June 
30, "',) from the school administrative unit's contribution 
to 
the 
total 
cost 
of 
funding 
public 
education 
from 
kindergarten to grade 
as 
described in the Essential 
Programs and Services Funding Act, non-state-funded school 
construction projects, 
additional local 
fungs 
for 
school 
purposes 
under 
the 
Maine 
Revised Statutes, 
Title 
20-A, 
section 15690, unexpended balances, tuition receipts, state 
subsigy and other receipts 
for 
the support of schools. 
(Recommend $."",)" 
5. 
Vote. 
Actions taken pursuant to subsections 1 to 4 must 
be taken by a recorded vote. 
6. 
Administrative costs for units with 
DO pupils. If a 
school administrative unit is reguired to pay administrative 
costs and has no allocation of state or local fungs, that unit 
may raise and expend funds for administrative costs. 
§15691. Municipal assessment paid to district 
1. 
Presentation of assessment 
schedule. 
The 
assessment 
schedule based on the budget approved at a 
community school 
district or school administrative district budget meeting must be 
presented to the treasurer of each municipality that is a member 
of the district. 
HOUSE AMENDMENT 
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.... , 
HOUSE AMENDMENT ,ff:: to COMMITTEE AMENDMENT "A" to H. P. 6, L. D. 1 
The assessment schedule must include each member municipality's 
share of the school administrative unit's contribution to the 
total cost of funding public education from kindergarten to grade 
as 
described in section 15688, 
the 
school administrative 
unit's contribution to debt service for non-state-funded school 
construction projects 
and 
additional 
local 
funds 
for 
school 
purposes under section 15690. 
2. 
Municipal treasurer's payment schedule. The treasurer of 
the 
member 
municipality, 
after 
being 
presented 
with 
the 
assessment 
schedule, 
shall 
forward 
1/12 
of 
that 
member 
municipality's share to the treasurer of the district on or 
before the 20th day of each month of the fiscal year beginning in 
July. 
§15692. Special school districts 
1. 
School administrative unit. For the purposes of section 
15695 and Title 20, 
sections 
3457 to 3460, 
a 
special school 
district is deemed to be a school administrative unit. 
2. 
Debt service. Debt service on bonds or notes issued by a 
special school district must be included in the school budget of 
the 
school 
administrative 
unit 
that 
operates 
the 
schools 
constructed by that district. The school board for the school 
administrative unit that operates the special district's schools 
shall pay to the special school district all sums necessary to 
meet the payments of principal and interest on bonds or notes 
when due and to cover maintenance or other costs for which the 
special school district is responsible. 
§I5693. School budget; budget formats 
1. 
Content. A school administrative unit shall include in 
its school budget document; 
A. 
The school administrative unit's total cost of funding 
public 
education 
from 
kindergarten 
to 
grade 
12, 
its 
non-state-funded debt service, if any, 
and any additional 
expenditures authorized by law; 
B. 
A summary of anticipated revenues and estimated school 
expenditures for the fiscal year; and 
C. 
The following statement, including the estimated dollar 
amount of state retirement payments; "This budget does not 
include the estimated amount of $....... in employer share 
of teacher retirement costs that is paid directly by the 
State." 
HOUSE AMENDMENT 
HOUSE AMENDMENT fI" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
2. 
Budget d~nes. The following time limitations apply 
to adoption of a school budget under this section. 
A. 
At least 
days 
before the initial meeting of 
the 
legislative body 
responsible for 
adopting 
a 
budget, 
the 
school administrative unit shall provide a detailed budget 
document to that legislative body and to any person who 
requests one and resides within the geographic area served 
by the school administrative unit. 
B. Notwithstanding a provision of law or charter to the 
contrary, school administrative units may adopt an annual 
budget prior to June 30th. 
The school budgets for career 
and technical education regions must be adopted on or before 
August 1st. 
,. 
Notwithstanding 
any 
municipal 
charter 
provision, 
QJ;JUnance or other le,w to the contrary, if the level of 
.s...t..gte subsidy for the next school year is not finalized in 
accordance with this chapter before June 1st. the school 
board may delay a school budget meeting otherwise required 
to be held before July 1st to a date after July 1st. If a 
school board elects to delay a school budget meeting under 
this paragraph, the meeting must be held and the budget 
approved 
within 
days 
of 
the 
date 
the 
commissioner 
notifies the school board of the amount allocated to the 
school administrative unit under section l5689-B. 
When 
a 
school budget meeting is delayed under this paragraph, the 
school administrative unit may continue operation of the 
unit at the same budget levels as were approved for the 
previous year. Continued operation under the budget for the 
previous year is limited to the time between July 1st and 
the date the new budget goes into effect. 
3. 
Budget format. 
The 
following provisions apply to 
a 
budget format. 
A. Except as provided in subsection 4, the budget format is 
that prescribed by a majority of the school board until an 
article prescribing the school budget format is approved by 
a majority of voters in an election in which the total vote 
is at least 
20% 
of 
the 
number 
of 
votes 
cast in the 
municipality in the last gubernatorial election, or 200, 
whichever is less. 
B. 
The format of the school budget may be determined in 
accordance with section 1306. 
HOUSE AMENDMENT 
HOUSE AMENDMENT ~" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
C. It is the intent of the Legislature that a school board 
shall 
attempt 
to 
obtain 
public 
participation 
in 
the 
development of the school budget format. 
4. 
Budget format; town or city charter. In a municipality 
where the responsibility for final adoption of the school budget 
is vested by municipal charter in a council, the school budget 
format may be changed through amendment of the charter under the 
home rule procedures of Title 3D-A, chapter 111, except that the 
amendment must be approved by a majority of voters in an election 
in which the total vote is at least 20°-0 of the number of votes 
cast in the municipality in the last gubernatorial election. 
5. 
Budget format; 
town meeting. 
When 
the final 
budget 
authority is vested in a town meeting operating under the general 
enabling procedures of Title 
3D-A, 
the format of the school 
budget 
may 
be 
determined by the 
town meeting or 
under 
the 
procedures of Title 3D-A, section 2522 or 2528. 
6. 
Budget format; commu:g.ity school district. The following 
prov~ilons apply to the PMQget 
format of a 
commMnity 
sChool 
district. 
A. 
An 
article containing the district's proposed budget 
format must be placed on the next warrant issued or ballot 
printed if: 
(1) A majority of the district school committee votes 
to place it on the warrant or ballot; or 
(2) A written petition signed by at least 10°-0 of the 
number 
of voters 
voting 
in the last gubernatorial 
election in each municipality within 
the 
community 
school district requests it to be on the warrant or 
ballot. 
B. The article containing the budget format may be voted on 
by secret ballot at an election conducted in accordance with 
Title 3D-A, sections 2528 to 2532. 
C. The district school committee shall: 
(1) 
Issue 
a 
warrant 
specifying that 
the 
municipal 
officers of 
the municipalities within the 
community 
school district shall place the budget format article 
on the secret ballot; and 
(2) Prepare and furnish the required number of ballots 
for 
carrying 
out 
the 
election, 
including 
absentee 
ballots. 
HOUSE AMENDMENT 
HOUSE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
7. 
Budget format: articles. The articles prescribed in this 
chapter must be included in the budget format and be voted on in 
the adoption of the budget in order to determine state and local 
cost sharing. 
8. 
Change in budget format. Any change in the budget format 
must be voted on at least 90 days prior to the budget year for 
which that change is to be effective. 
§15694. Actions on budget 
The following provisions apply to approving a school budget 
under this chapter. 
1. 
Checklist required. Prior to a vote on articles dealing 
with school appropriations. the moderator of a regular or special 
schQQl buaget;, muting Iihall 
u~yire the clerk Qr secreta[y to 
make a checklist of the registered vQters present. The number of 
voters listed on the checklist is conclusive evidence of the 
number present at the meeting. 
2. 
Reconsideration. 
Notwithstanding 
any 
law 
to 
the 
contrary. in school administrative units where the school budget 
is finally approved by the voters. a special budget meeting to 
reconsider action taken on the budget may be called only as 
follows. 
A. The meeting must be held within 30 days of the regular 
budget meeting at which the budget was finally approved. 
B. In a school administrative district or community school 
district. the meeting must be called by the school board or 
as follows. 
(1) 
A petition containing a 
number of signatures of 
l~gal voters in the member municipalities of the school 
administrative 
unit equalling at least 
10% 
of 
the 
number of voters who voted in the last gubernatorial 
election 
in 
member 
municipalities 
of 
the 
school 
administrative unit. or 100 voters. whichever is less, 
and 
specifying 
the 
article 
or 
articles 
to 
be 
reconsidered must 
be presented to the 
school 
board 
within 15 days of the regular budget meeting at which 
the budget was finally approved. 
(2) On receiving the petition, the school board shall 
call the special budget reconsideration meeting, which 
must be held wi thin 15 days of the date the petition 
was received. 
HOUSE AMENDMENT 
fl5:tfJ'it. 
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HOUSE AMENDMENT .1+. to COMMITTEE AMENDMENT "A" to H.P. 6. L.n. 1 
C. 
In a municipality, the meeting must be called by the 
municipal officers: 
(1) Within 15 days after receipt of a request from the 
school board, if the request is received within 15 days 
of the budget meeting at which the budget was finally 
approved and it specifies the article or articles to be 
reconsidered; or 
(2) 
Wi thin 
days 
after 
receipt 
of 
a 
written 
application presented in accordance with Title 30-A, 
section 2532, if the application is received within 15 
days of the budget meeting at which the budget was 
finally 
approved 
and it specifies 
the 
article 
or 
articles to be reconsidered. 
3. 
Invalidation of action of special budget reconsideration 
meeting. If a 
special budget meeting is called to reconsider 
action taken at a regular budget meeting, the actions of the 
meeting are invalid if the number of voters at the special budget 
meeting is less than the number of voters present at the regular 
budget meeting. 
4. 
Line-item transfers. 
Meetings 
requested by 
a 
school 
board for the purpose of transferring funds from one category or 
line item to another must be posted for voter or council action 
within 15 days of the date of the request. 
§15695. Bonds: notes: other 
All bonds, notes or other evidences of indebtedness issued 
for school purposes by a school administrative unit for major 
capital expenses, bus purchases or current operating expenses, 
including tax or other revenue anticipation notes, are general 
obligations of the unit. 
1. 
Tax assessments. The municipal officers or school board 
shall require the sums that are necessary to meet in full the 
principal of and interest on the bonds. notes or other evidences 
of indebtedness issued pursuant to this section payable in each 
year to be assessed and collected in the manner provided by law 
for the assessment and collection of taxes. 
2. 
Reduction. The sums to be assessed and collected under 
subsection 1 must be reduced by the amount of an allocation of 
funds appropriated by the Legislature to pay the principal and 
interest owed by the school administrative unit in a given year 
as certified to the unit by the commissioner. The commissioner 
HOUSE AMENDMENT 
HOUSE AMENDMENT .. JI- to COMMITTEE AMENDMENT .. A" to H. P. 6, L. a . 1 
shall certify the amount due to the unit within 30 days of its 
appropriation by the Legislature. 
3. 
Collection. 
After 
assessment 
and 
reduction 
under 
subsection 2, 
the remaining sum must be paid from ad valorem 
taxes, which may be levied without limi t 
as to rate or amount 
upon all the taxable property within the school administrative 
Sec. D-63. 20-A MRSA c. 608 is enacted to read: 
CHAPTER 608 
SCHOOL FINANCE ACT OF 2003 
§15751. 
Short title 
This chapter may be known and cited as "the School Finance 
Act of 2003." 
§15752. 
Mandated legislative appropriations for kindergarten 
to grade 12 education 
In accordance with the phase-in schedule provided in chapter 
606-B, 
beginning in fiscal year 2006-07, 
the Legislature each 
yea~ shall provige at 
l~gst 55% 
of the 
cost of 
the total 
alloccation for kindergarten to grade 12 egucation from General 
Fund revenue sources. 
For the purposes of this chapter, and until such time as the 
Legislature may implement an alternative school funding system, 
"total allocgtion" means the foundation allocation for a year, 
the debt service allocation for 
that year. 
the 
sum 
of all 
agjustments for that year and the totgl of the agditional local 
gppropriat~Qns for the prior year. 
In the event the Legislature 
implements gn alternative school funding model that alters the 
meaning of the terms 
used in this Title or otherwise makes 
obsolete 
the 
system 
of 
allocations 
and 
local 
appropriations 
established by this Title, the term "total allocation" as it 
applies to the mandatory appropriation required by this section 
means the amount reasonably calculated as the equivalent of this 
definition. 
§15753. 
Mandated legislative appropriations for special education 
Except as 
provided in section 15689, 
subsection 1, 
but 
notwithstanding 
any 
other 
provision 
of 
chapter 
606-B. 
the 
Legislature shall provide 100% of a school administrative unit's 
special 
education 
costs 
as 
calculated 
pursuant 
to 
section 
15681-A. subsection 2. 
HOUSE AMENDMENT 
HOUSE AMENDMENT +fIr to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
For the purposes of the mandatory appropriation required by 
this section, and in accordance with the essential programs and 
services school funding allocation system established in chapter 
606-B, 
the 
commissioner 
shall 
identify 
and 
provide 
in 
the 
commissioner's 
recommendation pursuant to section 15689-C the 
total special education costs required to be funded pursuant to 
this section. 
In addition to any appropriations required by 
section 15689-E, the Legislature shall appropriate and ensure the 
accurate distribution of the total 
amount 
identified by the 
commissioner. 
adjusted by the federal 
reimbursements 
for the 
costs of special education services mandated by federal or state 
law. rule or regulation that will be provided to the individual 
school administrative units for that same school year. 
§15754. 
Fund for Efficient Delivery of Educational Services 
The Fund for the Efficient Delivery of Educational Services, 
referred to in this section as "the fund." is established as a 
dedicated nonlapsing account within the Department of Education. 
This 
section 
provides 
for 
the 
design. 
implementation. 
administration and use of the fund. 
1. 
Source of funds; 
purpose. 
Funds 
for 
appropriations 
under this section must be appropriated in addition to the total 
amount annually appropriated for general purpose aid for local 
schools and must be placed into a single account. 
For fiscal 
year 2005-06 and fiscal year 2006-07. an amount calculated to be 
not greater than 2% of the total amount annually appropriated for 
general purpose aid for local schools must be dedicated to the 
fund and distributed from the fund to those school administrative 
units and municipalities that are able to demonstrate significant 
and sustainable savings in the cost of delivering educational 
services 
and 
improved student achievement 
through changes in 
governance. 
administrative 
structure 
or 
adopted 
policy 
that 
result in the creation of consolidated school administrative 
units. 
broad-based 
purchasing 
alliances. 
enhanced 
regional 
delivery 
of 
educational 
services 
or 
collaborative 
school-municipal service delivery or service support systems. 
Beginning in fiscal year 2005-06. the Legislature shall annually. 
prior to March 15th. enact legislation to allocate the following 
amounts calculated based on the amount appropriated for general 
purpose aid for local schools to the fund during each of the 
following fiscal years: 
A. 
In fiscal year 2005-0~n amount equivalent to 0.83% of 
the total amount appropriated for general purpose aid for 
local schoolS; and 
HOUSE AMENDMENT 
HOUSE AMENDMENT r/" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
B. 
In fiscal year 2006-07, an amount eguivalent to 2""0 of 
the total amount appropriated for general purpose aid for 
local schools. 
Any balance remaining in the fund at the end of any fiscal year 
does not lapse and must be carried forward for the next fiscal 
~ 
2. 
Administration: plan for implementation of fund. 
The 
department shall administer the fund or may contract for services 
for 
administratiQn 
of 
the 
fund. 
The 
commissiQner. 
in 
consultation with the Executive Department, State Planning Office 
and the other agencies. organizations and individuals determined 
appropriate 
by 
the 
commissioner, 
shall 
establish 
an 
implementation plan for 
the 
fund that includes, 
but is not 
limited to, the following: 
A. 
The 
establishment 
of criteria thrQugh which 
school 
administrative 
units 
and 
municipalities 
may 
demonstrate 
significant 
and 
sustainable 
savings 
in 
the 
cost 
of 
~vering 
educational 
services 
and 
improved 
student 
achievement through changes in governance, 
administrative 
structure or adopted policy that result in the creation of 
consolidated 
school 
administrative 
units, 
broad-based 
purchasing 
alliances. 
enhanced 
regional 
delivery 
of 
educational 
services 
or 
collaborative 
school-municipal 
service delivery or service support systems: 
B. 
Pursuant to criteria established in accordance with this 
sectiQn, 
a schoQl administrative unit or municipality may 
apply tQ the commissioner for a distribution from the fund 
during the period beginning with the start of fiscal year 
2005-06 and ending prior to the end of fiscal year 2006-07; 
and 
C. 
Pursuant to criteria established in accordance with this 
section, the commissioner may authorize distributions from 
the fund in the form of competitive and planning grants. 
§15755. 
Entitlement 
The State's school administrative units and municipalities 
are entitled to the appropriations reguired by this chapter. 
Sec. D-64. 30-A MRSA §2181, sub-§4, ,E. as enacted by PL 2003, 
c. 696, §12, is amended to read: 
E. 
Identify 
best 
management 
practices 
and 
make 
this 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,ff. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
information available to the public, 
including, 
but not 
limited 
to, 
best 
management 
practices 
that 
facilitate 
property tax rate reduction pursuant to the increasing state 
share of the total cost of essential programs and services 
under Title 20-11., chapter 606-B; 
Sec. D·65. 30·A MRSA §6006.F, sub·§6, as enacted by PL 1997, 
c. 787, §13, is amended to read: 
6. 
Forgiveness 
of principal 
payments. 
The 
fund 
must 
provide direct grants by forgiving the principal payments of a 
loan for an eligible school administrative unit. 
The amount of 
the forgiveness of principal payments must be determined by the 
school 
administrative unit's state 
share 
percentage 
ef--eea~ 
seF¥~ee-ees~s as determined in Title 20-11., section 19911 15672, 
subsection 31, not to exceed: 
A. 
Seventy percent and no less than 30% for health, safety 
and compliance; 
B. 
Seventy percent and no less than 30% for repairs and 
improvements; and 
C. 
~i-f~y Seventy percent and no less than 
69% 
0/0 
for 
learning space upgrades. 
Sec. D·66. Fund for Efficient Delivery of Educational Services; 
implementation plan. 
The Commissioner of Education shall submit a 
proposed plan to 
govern the design, implementation, management 
and 
oversight 
of 
the 
Fund 
for 
the 
Efficient 
Delivery 
of 
Educational Services established in the Maine Revised Statutes, 
Title 20-11., 
section 15754 to the Joint Standing Committee on 
Education and Cultural Affairs by March 31, 2005. 
As part of 
this 
review, 
the 
commissioner 
shall 
consider 
the 
efficient 
delivery of educational services in rural and isolated small 
school administrative units. 
The joint standing committee may 
report out a bill designed in accordance with the intentions of 
this Part to govern the design, implementation, management and 
oversight of the Fund for the Efficient Delivery of Educational 
Services. 
Sec. D·67. Fund for Efficient Delivery of Educational Services; 
distribution of the fund in fiscal year 2005·06. 
Notwithstanding the 
Maine 
Revised 
Statutes, 
Title 
20-11., 
section 
15754, 
the 
allocations from the General Purpose Aid to Local Schools program 
in fiscal year 2005-06 to the Fund for the Efficient Delivery of 
Educational Services must be used for the transition adjustment 
pursuant 
to 
Title 
20-11., 
section 
15686, 
subsection 
1. 
The 
allocation 
of 
funds 
from 
the 
Fund 
for 
the 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,ff: to COMMITTEE AMENDMENT "A" to H,P, 6, L,D, 1 
Efficient Delivery of Educational Services must be distributed to 
school administrative units that are eligible for the transition 
adjustment under the criteria established in Title 20-A, section 
15686, subsection 1. 
Sec. D-68. Sharing of total costs in school administrative districts and 
community 
school 
districts; 
Department 
of 
Education 
review. 
Notwi thstanding the Maine Revised Statutes, Title 20-A, section 
15688, subsection 2 and to ensure that 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, 
do 
not 
experience 
significant 
adverse 
effects 
as 
a 
result 
of 
the 
cost-sharing 
mechanism 
established 
pursuant 
to 
Title 
20-A, 
section 15688, subsection 2, the Department of Education shall 
conduct a 
review and analysis, for each school administrative 
unit, of the implications of this proposed cost-sharing mechanism 
on 
the 
member 
municipalities of 
these 
school 
administrative 
districts and 
community school districts. 
The 
Department of 
Education shall assist the member municipalities of these school 
districts in developing transition plans that include a phase-in 
to achieve the new method of determining member municipalities' 
local cost of education in accordance with Title 20-A, section 
15688, 
subsection 
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 by March 31, 2005. 
The Joint Standing Committee on Education and Cultural Affairs is 
authorized to introduce 
a bill related to the Department of 
Education report to the First Regular 
Session of the 
122nd 
Legislature. 
Sec. D-69. 
Method of cost sharing; exception. 
Beginning in 
fiscal 
year 
2005-06, 
the 
provisions 
of 
the 
Maine 
Revised 
Statutes, Title 20-A, section 15688, subsection 2 do not apply in 
determining the local cost of education of member municipalities 
in Maine School Administrative Districts No. 6 and No. 44. 
The 
cost-sharing 
formulas 
established 
between 
the 
member 
municipalities in these 2 school administrative districts prior 
to January 1, 
2005 
remain in effect until the formulas are 
changed pursuant to Title 
20-A, 
section 1301, 
subsection 3. 
Pursuant to section 68, all other school administrative districts 
and community school districts whose cost-sharing formulas were 
established in accordance with Title 20-A, 
sections 1301 and 
1704, 
respectively, 
remain subject to 
a 
phase-in approach to 
achieve the requirements of Title 20-A, section 15688, subsection 
and must reach full implementation of this provision no later 
than fiscal year 2008-09. 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,~ to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. 
D-70. 
Criteria 
for 
isolated 
small 
school 
adjustment; 
rulemaking. 
For fiscal year 2005-06 and pursuant to the Maine 
Revised 
Statutes, 
Title 
20-A, 
section 
15683, 
subsection 
1, 
paragraph F, the Commissioner of Education shall use the proposed 
model that was approved by the State Board of Education during 
its December 2004 meeting to determine the school administrative 
units that qualify for the adjustment for isolated small schools, 
except that the commissioner shall use the following criterion 
change 
for isolated small elementary schools: 
for elementary 
schools, the distance from the nearest school is reduced from 10 
to 8 miles. 
The commissioner shall develop provisionally adopted 
rules that establish the qualifications for the adjustment for 
isolated small schools in accordance with Title 20-A, section 
15687 no later than December 2, 2005 so that the Legislature may 
consider these criteria during the Second Regular Session of the 
122nd Legislature. 
Sec. D·71. Transition adjustment for fiscal year 2006-07. 
To 
minimize the adverse fiscal impact that may be experienced by 
some school administrative units as a result of the phase-in of 
the Essential Programs and Services Funding Act, the Commissioner 
of Education shall facilitate a review and analysis of the need 
for 
a 
transition 
adjustment 
in 
fiscal 
year 
2006-07. 
The 
Commissioner of Education, no later than January 13, 2006, shall 
make 
a 
recommendation 
to 
the 
Joint 
Standing 
Committee 
on 
Education 
and 
Cultural 
Affairs 
regarding 
the 
eligibility 
requirements 
and 
funding 
levels 
necessary 
for 
a 
transition 
adjustment in fiscal year 2006-07. 
The recommendations of the 
Commissioner of Education must be consistent with the provisions 
of the Maine Revised Statutes, Title 20-A, section 15686. 
Sec. D-72. Application. 
This Part applies to school budgets 
passed for the fiscal year beginning July 1, 2005, and thereafter. 
Sec. D-73. Effective date. 
Except for that portion of this Part 
that enacts the Maine Revised Statutes, Title 20-A, section 15754 
and that portion that amends Title 30-A, section 2181, subsection 
4, paragraph E, and except for sections 66 to 71, this Part takes 
effect July 1, 2005.' 
Further amend the amendment by striking out all of Part I 
and inserting in its place the following: 
'PART I 
Sec. 
1-1. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
following 
HOUSE AMENDMENT 
HOUSE AMENDMENT ·If· to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPAR7MEBT OF 
Homestead Property Tax Exemption Reimbursement 
0886 
Initiative: 
Provides funds to increase the homestead exemption 
to $13,000 and to provide 50% reimbursement to municipalities. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$53,872 
$53,872 
2006-01 
$162,789 
$162,789 
Homestead Property Tax Exemption 
- Mandate Reimbursement 
0881 
Initiative: 
Provides funds to reimburse municipalities 90% of 
the additional costs associated with changes to the homestead 
exemption. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$115,000 
$115,000 
2006-01 
$0 
$0 
Maine Revenue Services 
0002 
Initiative: 
Provides funds for 
related 
costs 
associated 
with 
Residents Property Tax 
Program, 
computer programming costs. 
GENERAL FUND 
POSITIONS -
LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
one Tax Examiner position and 
the 
expansion 
of 
the 
Maine 
including one-time 
funds 
for 
2005-06 
2006-01 
1.000 
1.000 
$52,529 
$56,513 
$109,517 
$85,002 
$162,046 
$141,515 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
2005-06 
2006-01 
General Fund 
$330,918 
$304,304 
DEPARTMENT TOTAL -
ALL FUNDS 
$330,918 
$304,304 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 
0308 
Initiative: 
Provides additional funds 
needed to increase the 
HOUSE AMENDMENT 
HOUSE AMENDMENT .ff.. to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
State's share of the total cost of K-12 public education based on 
the essential programs and services model to 55°-0 by fiscal year 
2006-07. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$0 
$0 
2006-01 
$90,205,242 
$90,205,242 
General Purpose Aid for Local Schools 
0308 
Initiative: 
Appropriates funds in fiscal year 2005-06 in order 
to 
provide 
additional 
subsidy 
to 
local 
school 
units 
and 
deappropriates 
funds 
in fiscal 
year 
2006-07 
due 
to 
revised 
projections of the amount of subsidy required to fund the State's 
share of the cost of essential programs and servcies. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$6,463,417 
$6,463,417 
General Purpose Aid for Local Schools 
0308 
2006-01 
($5,963,417) 
($5,963,417) 
Initiative: 
Provides 
funds 
for 
the 
Fund 
for 
the 
Efficient 
Delivery of Educational Services. 
Funds appropriated in fiscal 
year 
2005-06 
only 
are 
to 
be 
used 
to 
provide 
transition 
adjustments in order to minimize the adverse fiscal impact that 
may be experienced by some municipalities as a result of the 
phase-in of the essential programs and services model. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$6,962,382 
$6,962,382 
2006-01 
$19,929,786 
$19,929,786 
Fund for the Efficient Delivery of Educational Services 
Initiative: 
Allocates funds 
for 
the 
Fund for 
the Efficient 
Delivery of Educational Services. 
Funds appropriated in fiscal 
year 
2005-06 
only 
are 
to 
be 
used 
to 
provide 
transition 
adjustments in order to minimize the adverse fiscal impact that 
may be experienced by some municipalities as a result of the 
phase-in of the essential programs and services model. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2005-06 
$6,962,382 
$6,962,382 
2006-01 
$19,929,786 
$19,929,786 
HOUSE AMENDMENT 
HOUSE AMENDMENT .# to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL -
ALL FUNDS 
EXECUTIVE DEPARTMENT 
State Planning Office 0082 
2005-06 
$13,425,799 
$6,962,382 
$20,388,181 
2006-07 
$104,171,611 
$19,929,786 
$124,101,397 
Initiative: 
Provides 
funds 
for contractual services 
for the 
required data collection, data entry and analysis. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
EXECUTIVE DEPARTMENT 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL -
ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL -
ALL FUNDS 
any 
Further amend the amendment by 
nonconsecutive 
Part 
letter 
or 
consecutively. 
2005-06 
$50,000 
$50,000 
2005-06 
$50,000 
$50,000 
2005-06 
$13,806,717 
$6,962,382 
$20,769,099 
2006-07 
$50,000 
$50,000 
2006-07 
$50,000 
$50,000 
2006-07 
$104,525,915 
$19,929,786 
$124,455,701 . 
relettering or renumbering 
section 
number 
to 
read. 
HOUSE AMENDMENT 
HOUSE AMENDMENT '# to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
SUMMARY 
This 
amendment 
ramps 
up the State share of the cost of 
education to 55°-0 in 2 years rather than 4 years as proposed in 
Committee Amendment "A." 
SPONSORED BY, ~~~ 
(Representative STEDMAN) 
TOWN: 
Hartland 
FISCAL '\'()TE HEClLlRED 
(See attached) 
HOUSE AMENDMENT 
Approved: 01118/05 ,frac 
LDI 
LR 0328(12) 
An Act to Increase the State Share of Education Costs, Reduce Property Taxes and Reduce 
Government Spending at All Levels 
Fiscal Note for House Amendment" " to Committee Amendment" " 
Sponsor: Rep. Stedman 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
Projections 
2007-08 
Projections 
2008-09 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$0 
$103,940,876 
$0 
$103,940,876 
$0 
$13,735,634 
$51,513,178 
$51,513,178 
$5,881,111 
$0 
$0 
$0 
This amendment increases the General Fund cost of the bill by $103,940,876 in fiscal year 2006-07. Ofthat amount, 
$90,205,242 will be distributed to school administrative units'as additional state subsidy and $13,735,634 will be 
transferred to the Fund for the Efficient Delivery of Educational Services. 
LR0328(12) - Fiscal Note - Page 1 of 1