An Act To Improve the Essential Programs and Services Funding Formula
Maine Legislature, Session 123, LD 1041
Committee Amendment CA_B_H909 (House)
Amends: 20-A MRSA §5806, 20-A MRSA §15672, 20-A MRSA §15689, 20-A MRSA §15907

COMMITTEE AMENDMENT" B " to H.P. 759, L.D. 1041, Bill, "An Act To 
Improve the Essential Programs and Services Funding Formula" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 20-A MRSA §5806, sub-§2, as amended by PL 1987, c. 463, is further 
amended to read: 
2. 
Maximum allowable tuition. The maximum allowable tuition charged to a 
school administrative unit by a private school shall ee ~ the rate established under 
subsection 1 or the state average per public secondary student cost as adjusted, whichever 
is lower, plus an insured value factor. The insured value factor shall be ~ computed by 
dividing 5% of the insured value of school buildings and equipment by the average 
number of pupils enrolled in the school on October 1st and April 1st of the year 
immediately before the school year for which the tuition charge is computed. It may not 
exceed 10% of a school's legal tuition rate per student in anyone year begiooiog 'llith the 
1988 89 seheel year. Beginning with the 2009-2010 school year, a school administrative 
unit is not required to pay an insured value factor greater than 7% of the school's tuition 
rate per student, unless the legislative body of the school administrative unit votes to 
authorize its school board to pay a higher insured value factor that is no greater than 10% 
of the school's tuition rate per student. 
Fer the 1988 89 seneol year OR~' the state share oftne iRerease io the insures value faeter 
shall ee pais io the year of alleeation. 
Sec. 2. 20-A MRSA §15672, sub-§2-A, ~A-l is enacted to read: 
A-I. Principal and interest costs for approved major capital projects in the allocation 
year, including the initial local share of school construction projects that received 
voter approval for all or part of their funding in referendum beginning in fiscal year 
2009-10 and subsequent fiscal years; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" g " 
to H.P. 759, L.D. 1041 
Sec. 3. 20-A MRSA §15689, sub-§l,~, as amended by PL 2007, c. 240, Pt. C, 
§3, is further amended to read: 
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%; 
(2) In fiscal year 2006-07,84%; 
(3) In fiscal year 2007-08, 84%; and 
(4) In fiscal year 2008-09 and succeeding years, +00% 50%. 
Sec. 4. 20-A MRSA §15907, sub-§2, as enacted by PL 1981, c. 693, §§5 and 8, 
is amended to read: 
2. Payment of local share. A school administrative unit shall pay the local share of 
theH= its project costs. For school construction projects that receive final funding approval 
from the state board after January 1. 2009, the annual local share of a school 
administrative unit's project costs is an amount equal to the total of 112 mill multiplied by 
the property fiscal capacity of the school administrative unit for each year of the school 
administrative unit's debt retirement schedule. 
Sec. 5. Rules. Not later than December 31, 2008, the State Board of Education 
shall file provisionally adopted major substantive rules pursuant to the Maine Revised 
Statutes, Title 5, chapter 375, subchapter 2-A that adopt or amend rules pertaining to the 
approval of school construction projects pursuant to the Maine Revised Statutes, Title 20-
A, section 15907, subsection 2. 
Sec. 6. 
Review of limited English proficiency cost component. 
Notwithstanding the Maine Revised Statutes, Title 20-A, section 15686-A, subsection 2, 
the Commissioner of Education shall conduct a fiscal and program review of the costs 
reported by school administrative units that receive a portion of their total operating 
allocation for limited English proficiency students. The purpose of this review is to 
develop clear and transparent procedures for collecting and reporting valid and reliable 
data on the costs of providing services to limited English proficiency students through 
programs approved by the Department of Education pursuant to Title 20-A, section 
15675, subsection 1. 
Funding for this review must be included in the contract for 
updating essential programs and services components pursuant to Title 20-A, section 
15689-A, subsection 3. 
Sec. 7. Report. No later than January 31, 2009 the Commissioner of Education 
shall submit a report that includes findings and recommendations, including any 
necessary suggested legislation to implement clear and transparent procedures for 
collecting and reporting valid and reliable data on the costs of providing services to 
limited English proficiency students, for presentation to the joint standing committee of 
the Legislature having jurisdiction over education and cultural affairs.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" g .. to H.P. 759, L.D. 1041 
SUMMARY 
This amendment is one of the minority reports of the Joint Standing Committee on 
Education and Cultural Affairs. The amendment strikes and replaces the concept draft to 
accomplish the following. 
1. 
Under current law, school administrative units that send secondary students to 
private schools pay the maximum allowable tuition rate for secondary school students 
plus a so-called "insured value factor." The amendment establishes that, beginning with 
the 2009-2010 school year, the insured value factor for school administrative units that 
send students to a private school is 7%. It also permits the legislative body of the sending 
school administrative unit to authorize its school board to pay an insured value factor that 
is greater than 7% but less than or equal to 10%. 
2. Current law provides that, beginning in fiscal year 2008-09 and succeeding years, 
a school administrative unit that is a so-called "minimum receiver" of state subsidy is 
guaranteed a minimum of 5% of the school administrative unit's total allocation or 100% 
of the school administrative unit's special education costs, whichever amount is greater. 
The amendment provides that, beginning in fiscal year 2008-09 and succeeding years, the 
percentage of special education costs that may be allocated to a minimum receiver of 
state subsidy is 50%. 
3. For school construction projects that receive final funding approval from the State 
Board of Education after January 1, 2009, the amendment establishes that a school 
administrative unit must contribute 112 mill multiplied by the property fiscal capacity of 
the school administrative unit as the local share contribution towards the debt service 
costs of the school construction project. It also directs the State Board of Education to 
amend or adopt its rules to implement this local share requirement. 
4. It requires the Commissioner of Education to conduct a fiscal and program review 
of the costs reported by school administrative units that receive a portion of their total 
operating allocation for limited English proficiency students. The commissioner shall 
report the findings and recommendations from the review to the joint standing committee 
of the Legislature having jurisdiction over education and cultural affairs by January 31, 
2009. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/25/08 
~ae 
LD 1041 
LR 785(05) 
An Act To Improve the Essential Programs and Services Funding Formula 
Fiscal Note for Bill as Amended by Committee Amendment"~ " 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium savings - General Fund 
Fiscal Detail and Notes 
This bill provides that, beginning in fiscal year 2009-10, a school administrative unit (SAU) that tuitions students to a 
private school shall not be required to pay an insured value factor greater than 7% of the school's tuition rate per 
student unless the legislative body of the sending unit authorizes its school board to pay up to 10%. This may reducL 
the total state and local cost of K-12 public education in future biennia. The amount can not be determined at this 
time. 
The requirement that SAU's with school construction projects that receive final funding approval after January 1,2009 
contribute one-half of a mill as the local contribution towards the debt service costs will not affect the total cost of 
funding K-12 public education or the State's share of that cost. The requirement will affect the amount of funds 
required to be raised by SAU's, with those SAU's that have received approval for school construction projects after 
January 1, 2009 being required to raise more funds and those that do not have school construction projects that were 
approved after January 1, 2009 being required to raise less. The impact to individual SAU's can not be determined at 
this time. 
Reducing the percentage of special education costs that may be allocated to a minimum receiver of state subsidy from 
100% beginning in fiscal year 2008-09 to 50% also will not affect the total cost of funding K-12 public education 
beginning in fiscal year 2008-09 or the State's share ofthat cost. The provision will affect the amount of funds 
required to be raised by a local school administrative unit with minimum receivers being required to raise more funds 
and non-minimum receivers being required to raise less. The impact to individual local school units can not be 
determined at this time. 
The Governor's Supplemental Budget Recommendation for fiscal years 2007-08 and 2008-09 proposes to reduce the 
percentage of special education costs that may be allocated to minimum receivers of state subsidy from 100% in fiscal 
year 2008-09 to 50%, and then increases the percentage to 84% beginning in fiscal year 2009-10. 
LR0785(05) - Fiscal Note - Page 1 of 1