An Act To Revise the Essential Programs and Services Funding Formula To Increase Equity in School Funding
Maine Legislature, Session 123, LD 1368
Committee: Education and Cultural Affairs
Sponsors: MILLS
Amends: 20-A MRSA §5815, 20-A MRSA §15671, 20-A MRSA §15672, 20-A MRSA §15676, 20-A MRSA §15682

Legislative Document 
No. 1368 
H.P.960 
House of Representatives, March 13,2007 
An Act To Revise the Essential Programs and Services Funding 
Formula To Increase Equity in School Funding 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
Presented by Representative MILLS of Farmington. 
Printed on recycled paper 
'7J1~ frJ.11!~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §5815 is enacted to read: 
§5815. Targeted technology resource funds 
Notwithstanding the maximum tuition rates established under sections 5804, 5805 
and 5806, the tuition payments provided to public and private elementary schools and 
secondary schools for each tuition student must include the per-pupil amount for targeted 
technology resource funds that are made available to the sending school administrative 
unit in accordance with section 15681. 
Sec. 2. 20-A MRSA §15671, first ~, as enacted by PL 2001, c. 660, §I, IS 
amended to read: 
Essential programs and services are those educational resources that are identified in 
this chapter for all students to meet the standards in the 8 content standard subject areas 
of the system of learning results established in chapter 222. In order to achieve this 
system of learning results, school funding based on essential programs and services must 
be available in all schools on an equitable basis. Essential programs and services utilize 
resources iR6lHaiRg feaeral [HRaS that are currently provided or cou Id be adapted to 
implement a system of learning results, as well as additional resources that are also 
needed to ensure that these programs and services are available to all students. These 
essential programs and services must provide the basis for the system of school funding 
no later than 2007-08. School funding must be adequate to fully provide for all of the 
staffing and other material resource needs of the essential programs and services 
identified by the Legislature. 
Sec. 3. 20-A MRSA §15671, sub-§l, as amended by PL 2005, c. 2, Pt. D, §32 
and affected by §§72 and 74 and c. 12, Pt. WW, § 18, 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 limitation for that fiscal year. The state contribution to 
the cost of the components of essential programs and services, e}t6lHsiYI:! of feaeral [HRaS 
that are provided and aeeounted for in the eost of the eomponents of essential programs 
and serviees, 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 2006-07; and 
B. By fiscal year 2008-09 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%. Beginning in fiscal year 2005-06 and in each fiscal year until fiscal year 
2008-09, the state share of essential programs and services described costs must 
increase toward the 55% level required in fiscal year 2008-09. 
II 
Beginning in fiscal year 2005-06 and in each fiscal year thereafter, the commissioner 
shall use the funding level determined in accordance with this section as the basis for a 
recommended funding level for the state share of the cost of the components of essential 
programs and services. 
Sec. 4. 20-A MRSA §15672, sub-§32-A, ,C, as enacted by PL 2005, c. 2, Pt. D, 
§36 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is repealed. 
Sec. 5. 20-A MRSA §15676, sub-§l, as amended by PL 2005, c. 2, Pt. D, §39 
and affected by §§ 72 and 74 and c. 12, Pt. WW, § 18, is further amended to read: 
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 "mit during the most recent fiscal year under 
Title I of the federal Elemental)' and Secondal)' Act of 1965, 20 United States Code, 
Section 630 I et seq.; 
Sec. 6. 20-A MRSA §15676, sub-§2, as amended by PL 2005, c. 2, Pt. D, §39 
and affected by §§ 72 and 74 and c. 12, Pt. WW, § 18, is further amended to read: 
2. Other staff costs. The salary and benefit costs for school level 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 received by the school 
administrative unit during the most recent fiscal year under Title I of the federal 
Elemental)' and Secondal)' Act of 1965, 20 United States Code, Section 6301 et seq.; and 
Sec. 7. 20-A MRSA §15682, sub-§l is enacted to read: 
1. Regional adjustment beginning in fiscal year 2007-08. Beginning in fiscal year 
2007-08, the commissioner shall make a regional adjustment according to the provisions 
of this subsection. 
A. A school administrative unit whose labor market area teacher salary costs are 
computed to be 1.0 or greater, as computed by a statewide education policy research 
institute pursuant to this section, must receive a regional adjustment based on the 
regional differences in teacher salary costs. 
I 
B. A school administrative unit whose labor market area teacher salary costs are 
computed to be less than 1.0, as computed by a statewide education policy research 
institute pursuant to this section, must receive a regional adjustment that is 1.0. 
Sec. 8. 20-A MRSA §15682, sub-§2, is enacted to read: 
2. Appeals. The commissioner shall develop an appeals procedure for the regional 
adjustment under subsection 1 beginning in fiscal year 2007-08. 
SUMMARY 
This bill provides several revisions to the Essential Programs and Services Funding 
Act that are designed to achieve the goals of adequacy and equity in the funding of 
education for kindergarten to grade 12 public schools in the State. The bill accomplishes 
the following. 
I. It requires that the per-pupil targeted technology resource funds be paid to the 
school administrative unit or private school that each tuition student attends in addition to 
tuition rates calculated pursuant to the Maine Revised Statutes, Title 20-A, chapter 219. 
IS 
2. 
It removes the provisions in funding formula that recognize the allocation of 
federal resources that are provided to school administrative units. 
3. It requires that, beginning in fiscal year 2007-08, the regional adjustment to the 
salary and benefits costs of teachers and other school personnel that is based on labor 
market areas in the State must be at least 1.0 for all labor market areas in the State.