Resolve, To Direct the Department of Education To Review the Essential Programs and Services Model
Maine Legislature, Session 125, LD 0958
Committee Amendment CA_B_H920 (House)

COMMITTEE AMENDMENT "B " 
to H.P. 702, L.D. 958, "Resolve, To Direct the 
Department of Education To Review the Essential Programs and Services Model" 
Amend the resolve by striking out the title and substituting the following: 
'Resolve, To Authorize the Legislature To Contract for an Independent Review To 
Evaluate the Essential Programs and Services Funding Act' 
Amend the resolve by striking out everything after the title and before the summary 
and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, since enactment of the Essential Programs and Services Funding Act 
established under the Maine Revised Statutes, Title 20-A, chapter 606-B, the Legislature 
has debated both incremental and comprehensive funding reform proposals to remedy 
perceived flaws in the school funding formula and the state subsidy distribution 
mechanism; and 
Whereas, in order to obtain information in a timely manner to make informed 
policy decisions, the Legislature should provide for an independent review of education 
finance policies and practices associated with the Essential Programs and Services 
Funding Act; and 
Whereas, the Legislature should promptly contract with a qualified research entity 
to conduct an objective evaluation of the Essential Programs and Services Funding Act as 
it relates to the best practices of other states' school funding systems that are considered 
to be fair and equitable; 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 
COMMITTEE AMENDMENT 
ltOFS. 
COMMITTEE AMENDMENT "B, to H.P. 702, L.D. 958 
Sec. 1. Legislature to contract for independent review of the essential 
programs and services model. Resolved: That the Legislature, through the Joint 
Standing Committee on Education and Cultural Affairs, may contract with a qualified 
research entity to conduct pursuant to sections 5 and 6 an independent review of the 
Essential Programs and Services Funding Act established under the Maine Revised 
Statutes, Title 20-A, chapter 606-B; and be it further 
Sec. 2. Assistance; request for proposals process. Resolved: That, at the 
direction of the Joint Standing Committee on Education and Cultural Affairs, referred to 
in this resolve as "the joint standing committee," the Office of Program Evaluation and 
Government Accountability, referred to in this resolve as "the office," shall develop and 
administer a request for proposals process to permit the Legislature, through the joint 
standing committee, to award a contract pursuant to section 1. The office, with the advice 
and assistance of the Independent Review Advisory Committee, established under section 
and referred to in this resolve as "the advisory committee," and in consultation with and 
with the approval of the joint standing committee, shall: 
1. Develop and administer a request for proposals process in accordance with section 
3' , 
2. Administer the contract entered into pursuant to section 1, including monitoring 
the research entity's perfonnance in meeting deadlines, providing deliverables pursuant to 
sections 5 and 6 and complying with other tenns ofthe contract; and 
3. 
Within available resources, provide other assistance to the joint standing 
committee relating to the contract and the purposes of this resolve; and be it further 
Sec. 3. Request for proposals; standards and selection process. Resolved: 
That the office, with the advice and assistance of the advisory committee, and in 
consultation with and with the approval of the joint standing committee, shall administer 
a request for proposals process in accordance with this section. 
1. The qualifications of a research entity providing proposals must include, but are 
not limited to, the financial, technical and operation,.al capacity of the entity to conduct 
state-level education policy research and fiscal analysis, as demonstrated by the entity's 
professional experience and expertise. 
2. With the approval of the joint standing committee, the office shall issue a request 
for proposals and publish notice of the request on the Legislature's publicly accessible 
website and through advertisements in 2 or more public newspapers circulated wholly or 
in part in the State and may provide any further notice of the request to any other media 
or entities, as approved by the joint standing committee. The notice must provide that the 
office will accept, for 30 days after the first date of publication, proposals from qualified 
research entities that meet the standards approved by the joint standing committee. 
3. After proposals have been received and the period for accepting proposals has 
expired, the office, with the advice and counsel of the advisory committee, shall evaluate 
the proposals and present a ranking of or recommendations regarding the proposals to the 
joint standing committee. 
The joint standing committee shall review the 
recommendations and choose the proposal it wishes to accept. 
The joint standing 
committee shall notify the Executive Director of the Legislative Council of its selection 
COMMITTEE AMENDMENT 
ROFS 
COMMITTEE AMENDMENT ,:]3" to H.P. 702, L.D. 958 
of a proposal. The executive director shall execute a contract with the selected research 
entity on behalf of the Legislature. 
4. Notwithstanding the Maine Revised Statutes, Title 1, section 402, except for the 
name and mailing address of a research entity that submits a proposal, the proposal and 
all other materials prepared, used or submitted in connection with the proposal are 
confidential and are not subject to public review until the period for accepting proposals 
has expired; and be it further 
Sec. 4. Independent Review Advisory Committee. Resolved: 
That the 
Independent Review Advisory Committee is established to advise the office and joint 
standing committee on matters related to developing a request for proposals and 
administering the contract entered into pursuant to this resolve. The advisory committee 
consists of the following members: 
1. The Commissioner of Education or the commissioner's designee; 
2. The Chair of the State Board of Education or the chair's designee; 
3. 
A Co-director of the Education Research Institute established pursuant to the 
Maine Revised Statutes, Title 20-A, section 10; 
4. The Executive Director of the Maine School Management Association or the 
executive director's designee; and 
5. The Director of the Margaret Chase Smith Policy Center at the University of 
Maine or the director's designee who is a faculty researcher, research associate or policy 
fellow at the Margaret Chase Smith Policy Center. 
The advisory committee shall elect a chair from among its members. The office shall 
provide to the members of the joint standing cOlmnittee notice of the meetings of the 
office with the advisory committee so that members of the joint standing committee may 
attend; and be it further 
Sec. 5. Scope of the review. Resolved: That the contract entered into pursuant 
to section 1 must require an objective evaluation of the Essential Programs and Services 
Funding Act and must require a review of the school funding formula. The evaluation 
must include, but is not limited to, comparisons between municipalities within this State 
and between this State and other comparable states and must address the following issues: 
1. Whether the school funding formula and the subsidy distribution method in the 
laws of the State are fair and equitable and how the Essential Programs and Services 
Funding Act compares to other states' school funding systems that are considered to be 
fair and equitable; 
2. 
The various ways that school funding systems in other states determine and 
calculate the costs and components of a comprehensive education system and the 
advantages and disadvantages of those different approaches; 
3. The percentage of the total cost of public education that is provided by the state in 
other states' school funding systems and how the state share is funded in the other states; 
4. The advantages and disadvantages of calculating state aid to school administrative 
units based on student enrollment count and property valuation; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .-;B, to H.P. 702, L.D. 958 
5. How other states define a municipality's ability to pay for public education and 
what the arguments are in favor of and against those definitions; 
6. The effectiveness of state aid provided by other states' school funding systems to 
support economically disadvantaged students in local school districts as compared to the 
support provided to economically disadvantaged students in school administrative units 
under the laws of the State; and 
7. Changes that should be made to the definitions of the cost components and to the 
funding distribution method in the Essential Programs and Services Funding Act to 
provide adequate resources for a comprehensive education system and to more accurately 
determine the percentage of essential programs and services funding levels that each 
school administrative unit should receive from the State; and be it further 
Sec. 6. General requirements of the review. Resolved: That the contract 
entered into pursuant to section 1 must require: 
1. 
A review of previous studies and available data related to the State's school 
funding laws; a review of school funding systems in comparable states; an assessment of 
each of the issues in section 5, including the arguments in favor of and against the 
provisions of the State's school funding laws; recommended alternatives to the Essential 
Programs and Services Funding Act; and a review of: 
A. 
The existing studies of the Essential Programs and Services Funding Act, 
including research that was conducted to develop the State's school funding system 
and research conducted since the enactment of the Essential Programs and Services 
Funding Act; 
B. The existing school finance data collected by the Department of Education and 
state and local tax revenue data collected by the Department of Administrative and 
Financial Services, Bureau of Revenue Services related to the education finance 
system under the Essential Programs and Services Funding Act; and 
C. The education finance systems in comparable states with an emphasis on other 
states in New England and states committed to education quality, student equity and 
taxpayer equity; and 
2. An in-depth analysis of the recommended alternatives to the Essential Programs 
and Services Funding Act included in subsection 1 and an evaluation of: 
A. The recommended alternatives necessary to provide adequate resources for a 
comprehensive education system and to more accurately determine the percentage of 
essential programs and services funding levels that each school administrative unit 
should receive from the State; 
B. The recommended alternatives to the definitions of the cost components and to 
the funding distribution method in the Essential Programs and Services Funding Act; 
and 
C. The costs and benefits of the recommended alternatives, including comparative 
analyses and calculations related to education quality, student equity and taxpayer 
equity. 
COMMITTEE AMENDMENT 
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COMMJTIEE AMENDMENf;6 .. to H.P. 702, L.D. 9" 
The Department of Education, the Department of Administrative and Financial 
Services, Bureau of Revenue Services and the Education Research Institute established 
pursuant to the Maine Revised Statutes, Title 20-A, section 10 shall provide the qualified 
research entity selected with access to previous reports on school funding in the State and 
access to database information necessary to carry out the evaluation. 
The contract entered into pursuant to section 1 must require the qualified research 
entity selected to provide opportunities for input from education stakeholder groups in the 
State as part of its evaluation; and be it further 
Sec. 7. 
Disqualification. Resolved: 
That the Education Research Institute 
established pursuant to the Maine Revised Statutes, Title 20-A, section 10, due to its prior 
involvement with the development, review and analysis of the essential programs and 
services funding model, is disqualified from being considered or selected to enter into the 
contract pursuant to section 1; and be it further 
Sec. 8. Preliminary and final reports. Resolved: That the qualified research 
entity selected to conduct the independent review pursuant to this resolve shall present a 
preliminary report of the results of the review under section 6, subsection 1 to the joint 
standing committee of the Legislature having jurisdiction over education and cultural 
affairs no later than April 1, 2013. The research entity shall present the final report, 
including the results of the review under section 6, subsection 2, to the joint standing 
committee of the Legislature having jurisdiction over education and cultural affairs by 
December 1, 2013. The joint standing committee of the Legislature having jurisdiction 
over education and cultural affairs may submit a bill relating to the final report to the 
Sec. 9. Suspension of contract to review essential programs and services 
components. Resolved: That, notwithstanding the Maine Revised Statutes, Title 20-A, 
section 15689-A, subsection 3, for fiscal year 2011-12 and fiscal year 2012-13, the 
Commissioner of Education may not contract with a statewide education research 
institute to review certain cost components of the Essential Programs and Services 
Funding Act in accordance with the schedule established in Title 20-A, section 15686-A; 
and be it further 
Sec. 10. Contract to compile and analyze education data. Resolved: That, 
notwithstanding the Maine Revised Statutes, Title 20-A, section 15689-A, subsection 6, 
for fiscal year 2011-12 and fiscal year 2012-13, the Commissioner of Education and the 
Legislature may contract with a statewide education research institute for the compilation 
and analysis of education data in accordance with Title 20-A, section 10, except that the 
contract for these 2 fiscal years may not exceed the balance of funds remaining after 
funds allocated for this purpose are transferred pursuant to this resolve to the Legislature 
to fund the contract authorized under section 1; and be it further 
Sec. 11. Committee meetings authorized. Resolved: That the joint standing 
committee may meet up to 4 times to carry out its responsibilities under this resolve; and 
be it further 
Sec. 12. Appropriations and allocations. Resolved: 
That the following 
appropriations and allocations are made. 
COMMITTEE AMENDMENT 
It o"F S COMMITTEE AMENDMENT ,3" to H.P. 702, L.D. 958 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 0308 
Initiative: Deappropriates funds no longer required for the contract to review the cost 
components of the Essential Programs and Services Funding Act pursuant to the Maine 
Revised Statutes, Title 20-A, section 15689-A, subsection 3 and for a portion of the 
contract with a statewide education policy research institute for the compilation and 
analysis of education data in accordance with the provisions established pursuant to Title 
20-A, section 10. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
LEGISLATURE 
Legislature 0081 
2011-12 
($150,000) 
($150,000) 
2011-12 
($150,000) 
($150,000) 
2012-13 
($300,000) 
($300,000) 
2012-13 
($300,000) 
($300,000) 
Initiative: Provides funds for a contract to conduct an independent review of the school 
funding formula and related state subsidy distribution method in the Essential Programs 
and Services Funding Act. Funds appropriated for this purpose may not lapse but must 
be carried forward to be used to complete the independent review authorized by this 
resolve. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
LEGISLATURE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2011-12 
$150,000 
$150,000 
2011-12 
$150,000 
$150,000 
COMMITTEE AMENDMENT 
2012-13 
$300,000 
$300,000 
2012-13 
$300,000 
$300,000 
COMMITTEE AMENDMENT ,~" to H.P. 702, L.D. 958 
SECTION TOTALS 
GENERAL FUND 
SECTION TOTAL - ALL FUNDS 
2011-12 
2012-13 
$0 
$0 
$0 
$0 
Emergency clause. 
In view of the emergency cited In the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment strikes and replaces the resolve, which directs the Department of 
Education to have an independent agency not previously involved with the essential 
programs and services funding formula review the essential programs and services 
funding formula to analyze the impact of its implementation on certain issues involved 
with funding public education in Maine. The amendment authorizes the Legislature to 
enter into a contract for an independent review of the Essential Programs and Services 
Funding Act through a process that awards a contract to a qualified research entity. The 
review of Maine's school funding formula must be designed to provide the Legislature 
with an objective evaluation of the Essential Programs and Services Funding Act that 
includes, but is not limited to, comparisons between fair and equitable state education 
finance policies established in other comparable states and such policies in Maine. 
The amendment requires the Office of Program Evaluation and Government 
Accountability to provide assistance to the Joint Standing Committee on Education and 
Cultural Affairs on the development and administration of a process that awards a 
contract to a qualified research entity to conduct the independent review of the Essential 
Programs and Services Funding Act. The involvement by that office in this project was 
approved by a vote of 12-0 by the Government Oversight Committee on March 9,2012. 
The amendment also establishes an advisory committee to advise the Office of Program 
Evaluation and Government Accountability and the Joint Standing Committee on 
Education and Cultural Affairs on matters related to administering the contract for the 
independent review of the Essential Programs and Services Funding Act. 
The amendment also provides that the qualified research entity selected to conduct 
the independent review must present a preliminary report of the results of the initial 
evaluation required under the review to the joint standing committee of the Legislature 
having jurisdiction over education and cultural affairs by April 1, 2013. The final report, 
including the results of the detailed evaluation required under the independent review, 
must be presented to the joint standing committee of the Legislature having jurisdiction 
over education and cultural affairs by December 1,2013. The joint standing committee is 
authorized to submit a bill relating to the final report to the Second Regular Session of the 
126th Legislature. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/30/12 P/'ac 
LD958 
LR 1802(04) 
Resolve, To Direct the Department of Education To Review the Essential Programs and Services 
Model 
Fiscal Note for Bill as Amended by Committee Amendment ''8'' (H -9 JO) 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Legislative Cost/Study 
FY 2011-12 
FY 2012-13 
Projections 
FY 2013-14 
Projections 
FY 2014-15 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Legislative Cost/Study 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
The costs of the 4 authorized interim committee meetings are projected to be $6,500 in fiscal year 2012-13. The 
Legislature's proposed budget includes $10,000 in fiscal year 2012-13 for legislative studies. Whether this amount is 
sufficient to fund all studies will depend on the number of studies authorized by the Legislative Council and the 
Legislature. 
Fiscal Detail and Notes 
This bill includes General Fund appropriations of$150,000 in fiscal year 2011-12 and $300,000 in fiscal year 2012-13 
to the Legislature and corresponding General Fund deappropriations to the General Purpose Aid for Local Schools 
(GPA) program within the Department of Education to provide funds to the Legislature to contract with a qualified 
research entity for an independent review of the Essential Programs and Services (EPS) Funding Act. The funds 
being shifted from the GP A program to the Legislature are funds that are specifically allocated within GP A for the 
review of the cost components of EPS and for the compilation and analysis of education data and will not affect 
subsidy provided to local school administrative units. 
Additional costs to the Department of Education and the State Board of Education to serve on the advisory committee 
can be absorbed within existing budgeted resources. 
The Office of Program Evaluation and Government Accountability can absorb within existing budgeted resources the 
additional costs associated with providing assistance to the Joint Standing Committee on Education and Cultural 
Affairs to implement a contract to conduct the independent review of the EPS Funding Act. 
LR1802(04) - Fiscal Note - Page 1 of 1