Maine Legislature, Session 124, LD 1225
Committee: Education and Cultural Affairs
Sponsors: CROCKETT, DAVIS, EATON, SCHATZ
Amends: 20-A MRSA §15689

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Legislative Document 
No. 1225 
H.P.845 
House ofRepresen,tatives, March 26,2009 
An Ad To Amend the School Funding Formula Regarding School 
Administrative Units That Are Eligible for the Minimum State 
Share of Their Total Allocation 
(EMERGENCY) 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
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Presented by Rep~esentative JOHNSON of Greenville . 
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MILLICENT M. MacFARLAND 
Clerk 
. Cosponsored by Representatives: CROCKETT of Bethel, DAVIS of Sangerville, EATON of 
Sullivan, MacDONALD of Boothbay, McFADDEN of Dennysville, SCHATZ of Blue Hill. 
. Printed 011 recycled papt:r 
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Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, a number of school administrative units across the State do not qualify for 
significant levels of state subsidy from the general purpose aid for local schools program 
because the relative property fiscal capacity of the municipalities in these school 
administrative units as defined by the Essential Programs and Services Funding Act 
results in the designation of these school administrative units as so-called minimum 
subsidy receivers; and 
Whereas, many school administrative units that are designated as so-called 
minimum subsidy receivers are comprised of municipalities where the income levels of 
residents are below the statewide average for income and where a significant percentage 
of resident students qualify for free or' reduced price lunch, which is the federally 
recognized metric for students that are considered economically disadvantaged; and 
14Wbereas, the enactment of this legislation is necessary to provide an adjustment to 
the level of state subsidy that may be provided to school administrative units that are 
designated so-called minimum subsidy receivers when the income levels of municipal 
residents are below the statewide average for income and when the school administrative 
unit has a significant number of resident students who qualify as economically 
disadvantaged students; and 
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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 
Be it enacted by the People of the State of Maine as follows: 
. Sec. 1. 20-A MRSA §15689, sub-§l-C is enacted to read: 
I-C. Adjustments to state contributions to economically disadvantaged school 
administrative units. Beginning in fiscal year 2009-10, a school administrative unit that 
is eligible for the minimum state share of its total allocation as calculated pursuant to 
subsection 1, paragraph A is eligible for further adjustments to the state share of its total 
allocation as set forth in this subsection. 
A. A school administrative unit is eligible for an adjustment as computed under 
paragraph B if: 
(1) The local median household income of each municipality in the school 
administrative unit is less than the statewide median household income; and 
(2) At least 30% of the students in the school administrative unit are 
economically disadvantaged students. as calculated pursuant to section 15675, 
subsection 2. 
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For purposes of this paragraph, "median household income" means the median 
income computed based on the most current census information available, as 
provided by the Executive Depal1ment, State Planning Office. 
B. If a school administrative unit meets the eligibility criteria in paragraph A, the 
state share of its total allocation must be adjusted pursuant to this paragraph. 
(I) For a school administrative unit in which at least 30% but less than 40% of 
its students are determined to be economically disadvantaged as calculated 
pursuant to section 15675, subsection 2, the school administrative unit's state 
share of its total allocation must be adjusted to provide the school administrative 
unit with an EPS per-pupil rate that is no less than 35% of the statewide average 
EPS per-pupil rate for the fiscal year. 
(2) For a school administrative unit in which at least 40% but less than 50% of 
its students are determined to be economically disadvantaged as calculated 
pursuant to section 15675, subsection 2, the school administrative unit's. state 
share of its total allocation must be adjusted to provide the school administrative 
unit with an EPS per-pupil rate that is no less than 45% of the statewide average 
EPS per-pupil rate for the fiscal year. 
. (3) For a school administrative unit in which at least 50% of its students are 
determined to be economically disadvantaged as calculated pursuant to section 
15675, subsection 2, the school administrative unit's state share of its total 
allocation must be adjusted to provide the school administrative unit with an EPS 
per-pupil rate that is no less than 50% of the statewide average EPS per-pupil rate 
for the fiscal year. 
(4) For a school administrative unit that is experiencing exceptional or unusual 
economic hardship as determined by the commissioner and based on criteria 
established by the commissioner, the commissioner may recommend an 
additional adjustment to the state share of the school administrative unit's total 
allocation. For each case in which the commissioner has determined that such an 
exceptional or unusual economic hardship exists, the commissioner shall provide 
the joint standing committee of the Legislature having jurisdiction over education 
matters with the basis for recommending the additional adjustment and the 
amount of the recommended adjustment. 
An adjustment under this subsection must be an adjustment to the school administrative 
unit's state allocation in addition to the adjustment for debt service pursuant to subsection 
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Emergency' clause. 
In view of the emergency cited in the' preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill provides that a school administrative unit that is eligible for the minimum 
state share of its total allocation under the Essential Programs and Services Funding Act 
may also be eligible for an additional adjustment when the school administrative unit 
meets certain eligibility criteria for an economically disadvantaged school administrative 
unit: 
1. 
The local median household income of each municipality in the school 
. administrative unit is less than the statewide median household income; and. 
2. At least 30o/~ of the students in the school administrative unit are economically 
disadvantaged students as calculated pursuant to the Maine Revised Statutes, Title 20-A, 
. section 15675, subsection 2. 
A school administrative unit that meets these eligibility criteria must receive an 
additional adjustment to the state share of its total allocation. 
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