An Act To Amend the Laws Regarding School Funding
Maine Legislature, Session 123, LD 1932
Committee: Education and Cultural Affairs
Sponsors: BOWMAN, NORTON, MITCHELL, TURNER, CAIN, MILLETT, STRANG BURGESS
Amends: 20-A MRSA §1305-C, 20-A MRSA §1481, 20-A MRSA §1481-A, 20-A MRSA §5203, 20-A MRSA §5204, 20-A MRSA §6051, 20-A MRSA §15688

Legislative Document 
No. 1932 
S.P.741 
November 28, 2007 
An Act To Amend the Laws Regarding School Funding 
(EMERGENCY) 
Submitted by the Department of Education pursuant to Joint Rule 204. 
Received by the Secretary of the Senate on November 28,2007. Referred to the 
Committee on Education and Cultural Affairs pursuant to Joint Rule 308.2 and ordered printed 
pursuant to Joint Rule 401. 
Presented by Senator BOWMAN of York. 
Cosponsored by Representative NORTON of Bangor and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: MITCHELL of Kennebec, TURNER of Cumberland, Representatives: CAIN of 
Orono, MILLETT of Waterford, STRANG BURGESS of Cumberland. 
Printed 011 recydetl pa~r 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, certain financial barriers have been identified that may delay the 
implementation of the school district reorganization law, Public Law 2007, chapter 240, 
Part XXXX; and 
Whereas, reorganization planning committees are engaged in negotiating proposed 
reorganization plans that, upon approval of the Commissioner of Education, are expected 
to be submitted to voters in affected municipalities across the State as early as January 15, 
2008 or subsequently on June 10,2008; and 
Whereas, the removal of these financial barriers can reasonably be expected to 
enable reorganization planning committees to successfully negotiate and submit proposed 
reorganization plans in a timely manner; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §1305-C, as enacted by PL 2007, c. 240, Pt. XXXX, §ll, is 
further amended to read: 
§1305-C. Mandatory budget validation and cost center summary budget form 
Notwithstanding any other law, school administrative district budgets developed aft :;-
January 1, 2008 must conform to the format and referendum procedures set fortlo III 
seetiofls 1305 A afld 1305 B sections 1485 and 1486. 
Sec. 2. 20-A MRSA §1481, as enacted by PL 2007, c. 240, Pt. XXXX, § 13, is 
repealed. 
Sec. 3. 20-A MRSA §1481-A is enacted to read: 
§1481-A. Finances 
1. Apportionment of costs for regional school unit. A regional school unit may 
raise money, in addition to the local contribution pursuant to section 15690, subsection 1, 
for establishing and maintaining public schools, erecting buildings and providing 
equipment for educational purposes. The additional costs of operating a regional school 
unit must be shared among all municipalities within the regional school unit by the same 
local share percentages for each municipality resulting from the determination of the local 
contribution under section 15688. 
2. Existing cost-sharing agreement. Notwithstanding subsection 1, a cost-sharing 
agreement in existence on June 7, 2007 that was adopted pursuant to Public Law 2005, 
chapter 2 or pursuant to a private and special law remains in existence unless the parties 
to the agreement modify or terminate the agreement: 
A. As part of a reorganization to regional school units under this chapter; or 
B. As a result of a negotiated agreement between the parties to the cost-sharing 
agreement. 
3. 
Method included in reorganization plan. Notwithstanding subsection 1, a 
regional school unit may use a method of cost sharing that was included in a 
reorganization plan developed pursuant to section 1461 or Public Law 2007, chapter 240, 
Part XXXX, section 36 as long as the method .complies with this subsection. 
A. 
The costs of operating a regional school unit must be shared among all 
municipalities within the unit in one of the following ways. 
(1) Under a property valuation method, municipalities in a unit shall share costs 
in the same proportion as each municipality's property fiscal capacity as defined 
in section 15672, subsection 23 is to the unit's property fiscal capacity. 
(2) Under an alternate plan approved by the state board and by a vote of the 
legislative bodies of the school administrative units forming the unit and based 
on: 
(a) The number of resident pupils in each town; 
(b) The property fiscal capacity of each member municipality as defined in 
section 15672, subsection 23; 
(c) Any combination of divisions (a) and (b); or 
Cd) 
Any other factor or combination of factors that may, but need not, 
include divisions (a) or (b). 
Notwithstanding any provision of law to the contrary, a cost-sharing agreement in 
existence on June 7, 2007 that was adopted pursuant to Public Law 2005, chapter 2 or 
pursuant to a private and special law may not be construed to preempt the formation of a 
regional school unit under this chapter. Notwithstanding any provision of law to the 
contrary, a cost-sharing agreement between 2 or more municipalities in existence on June 
7, 2007 that was adopted prior to June 7, 2007 may not be construed to preempt the 
formation of a regional school unit under this chapter. 
Notwithstanding any provisions of law to the contrary, a municipality within a 
regional school unit may raise money and direct the spending of the funds to a school 
serving children from kindergarten to no higher than grade 8. 
Sec. 4. 20-A MRS A §1701-C, as enacted by PL 2007, c. 240, Pt. XXXX, §16, is 
amended to read: 
§1701-C. Mandatory budget vaHdatfon and cost center summary budget form 
Notwithstanding any other law, community school district budgets developed after 
January 1, 2008 must conform to the format and referendum procedures set forth in 
seetieflS 17Q1 A aBS 17m B sections 1485 and 1486. 
Sec. 5. 20-A MRSA §5203, sub-§4, as enacted by PL 1981, c. 693, §§ 5, 8, is 
repealed and the following enacted in its place: 
4. Exception; no elementary school. A school administrative unit that neither 
maintains an elementary school nor contracts for elementary school privileges pursuant to 
chapter 115 shall pay the tuition, in accordance with chapter 219, at the public school or 
the approved private school of the parent's choice at which the student is accepted. 
Sec. 6. 20-A MRSA §5204, sub-§4, as amended by PL 1985, c. 797, §32, is 
further amended to read: 
4. No secondary school. SeeesElary stl:lseBts 'Naese }3arests resise in a A school 
administrative unit wbieb that neither maintains a secondary school nor contracts for 
secondary school privileges may attend a }3riYate seaeol a}3}3FOyed for tuition }3l:lf}3oses, a 
}3l:lBlie seaool in a8 adjoiniftg l:lllit 'Nhiea aeee}3ts tl:lition stl:ldents, er a seaoel aJJ}3roved for 
tliitie8 }3l:lFfleses in BftotHer state or eOl:llltry l:l'}3on '}3erFH:ission of omeials of tae reeeiving 
saBeel. Tae seaoel admHlistratiye Hilit waere the stl:lsents' '}3areBts reside saall }3ay tl:lition 
is the afBel:lfit Uf' to tae legal tl:litien rate as sefines in eaaJJter 219 pursuant to chapter 115 
shall pay the tuition, in accordance with chapter 219, at the public school or the approved 
private school of the parent's choice at which the student is accepted . 
Sec. 7. 20-A MRSA §6051, sub-§l, ~C, as enacted by PL 1985, c. 797, §36, is 
amended to read: 
C. 
A determination of whether or not the annual financial ~ 
data submitted to 
the department is correct; 
Sec. 8. 20-A MRSA §6051, sub-§4, as amended by PL 2005, c. 683, Pt. A, §25, 
is further amended to read: 
4. Initial report to commissioner. On or before Deeemeer November 1st, the 
school board shall provide the commissioner with: 
C. 
Written determination of whether or not proper budgetary controls are in place; 
D. 
A written determination of whether or not the annual financial Fe}3ert data 
submitted to the department is correct, including submission of an audited 
reconciliation of the annual financial Fef*H'i data prepared and certified by the auditor; 
and 
E. 
A written determination as to whether the school administrative unit has 
complied with applicable provisions of the Essential Programs and Services Funding 
Act. 
Sec. 9. 20-A MRSA §6051, sub-§6, as enacted by PL 2001, c. 344, §9, is 
amended to read: 
6. Report to commissioner. Within 9 Q months after the end of the audit period, the 
school board shall provide the commissioner with: 
A. 
A copy of the audit report; 
B. 
Accountability of all revenues and expenditures; 
C. 
Written assurance that the audit has been conducted in accordance with 
applicable state and federal laws relating to financial and compliance audits; and 
D. 
Any other information that the commissioner may require. 
Sec. 10. 20-A MRSA §15688, sub-§3-A, ~-1, as enacted by PL 2007, c. 240, 
Pt. XXXX, §30, is repealed. 
Sec. 11. 20-A MRS A §15689, sub-§1-B is enacted to read; 
I-B. Adjustments to state contributions to member municipalities in regional 
school units. The minimum state allocation provisions of subsection 1, paragraph B are 
applicable for each case in which the school administrative units in existence prior to the 
operational date of the new regional school unit received an adjustment under subsection 
1, paragraph B for fiscal year 2007-08 or fiscal year 2008-09. For each regional school 
unit eligible under this subsection, the minimum state allocation provisions of subsection 
1, paragraph B are applicable for each member municipality that was a member of the 
eligible school administrative units in existence prior to the operational date of the new 
regional school unit. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
The bill amends the laws regarding school funding to address and correct school 
funding issues that present barriers to the implementation of school reorganization.