An Act Regarding Insured Value Factor Payments for Public Tuition Students Attending a Private School
Maine Legislature, Session 126, LD 1505
Committee Amendment CA_A_S293 (Senate)
Amends: 20-A MRSA §5806, 20-A MRSA §15683-A

COMMITTEE AMENDMENT 'A" to S.P. 563, L.D. 1505, Bill, "An Act 
Regarding Insured Value Factor Payments for Public Tuition Students Attending a 
Private School" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 20-A MRSA §5806, su b-§2, as amended by PL 2009, c. 571, Pt. E, §8, is 
further amended to read: 
2. 
Maximum allowable tuition. The maximum allowable tuition charged to a 
school administrative unit by a private school is 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. For selwol year 2(:)(:)9 2(:)IQ oRly, tke m~iImlm allowable tuitioR 
rate, prior to tke additioR of tke iestlred '1altle faetor, Imlst be redtleed by 2%; tke iRswed 
value faetor must be based OR tkis redueed rate. The insured value factor is 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. For tke 
2(:)(:)g 2(:)(:)9 sekool year oRly, a seRool admiRistrati'le UBit is Rot required to pay aR iRswed 
'1alue faator greater tHan 5% of the sakool's tuitioR rate per studeRt, tlRless tHe legislati'le 
body of tke sekool admiRistrativi~ unit '1otes to autHori7le its sekool board to pay a kigher 
iRswed '1alue faator tHat is RO greater tkaR IQ% of tHe sakool's tuitioR rate per srudeRt. 
BegiRFliRg iR From school ye:ar 2009-2010 to school year 2013-2014, a school 
administrative unit is not required to pay an insured value factor greater than 5% of the 
school's tuition rate or $500 per student, whichever is less, 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. For the 
2014-2015 school year, a school administrative unit is not required to pay an insured 
value factor greater than 6% of tlhe 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. 
Beginning in the 2015-2016 school year, a school administrative unit is not required to 
COMMITTEE AMENDMENT 
!j~' 
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COMMITTEE AMENDMENT-A" to S.P. 563, L.D. 1505 
pay an insured value factor greater than the amount of the prior school year's insured 
value factor adjusted by a percentage equal to the percentage change in the state share 
percentage of the total cost of funding public education in the prior school year as 
determined by section 15671, subsection 7, paragraph C as compared to the applicable 
percentage for the current school year. In no case may the insured value factor be less 
than 6% or greater than 10% 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 an 
insured value factor that exceeds the amount otherwise permitted by this subsection by no 
more than 5% of the school's tuition rate per student. 
Sec. 2. 20-A MRSA §15683-A, as amended by PL 2011, c. 655, Pt. C, §7, is 
further amended to read: 
§15683-A. Total debt service allocation 
For each school administrative unit, that unit's total debt service allocation is that 
unit's debt service costs as defined in section 15672, subsection 2-A. 
Each school 
administrative unit's total debt service allocation must include the portion of the tuition 
cost applicable to the insured value factor for the base year computed under section 5806 
limited te ail inEmred value meter Be greater tRail 5% fer eaeh eligible student. Beginning 
in school year 2014-2015, each school administrative unit's total debt service allocation 
must include the portion of the tuition cost applicable to the insured value factor for the 
base year computed under section 5806 limited to an insured value factor no greater than 
the percentage established in section 5806, excluding any higher percentage authorized 
by local school boards, for each eligible student for the base year.' 
SUMMARY 
This amendment strikes and replaces the bill to increase the insured value factor 
portion of the tuition rate that a private school may charge for public tuition students to 
6% of the tuition rate in school year 2014-2015. 
The amendment provides that, in 
subsequent school years, the insured value factor payment will be adjusted by a 
percentage equal to the change in the State's share of the total cost of funding education, 
but may not be less than 6% and not more than 10% of the tuition rate, unless the school 
administrative unit votes to pay an insured value factor that exceeds the amount permitted 
by no more than 5% of the private school's tuition rate. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/11113 frac. 
LD 1505 
LR 2119(02) 
An Act Regarding Insured Value Factor Payments for Public Tuition Students Attending a Private 
School 
Fiscal Note for Bill as Amended by Committee Amendment Jt'~--2-q 3 ') 
Committee: Education and Cultural Affairs 
~ 
Fiscal Note Required: Yes 
Fiscal Note 
Future biennium cost increase - General Fund 
Fiscal Detail and Notes 
Increasing the percentage of the maximum allowed tuition rate that private schools that are approved for receipt of 
public funds may charge for the Insured Value Factor (JVF) beginning in the 2014-2015 school year will increase 
costs to those local school administrative units that send students to these private schools in the same school year. 
This provision will increase the State's share of the cost of funding K-12 education beginning in fiscal year 2016-17, 
which is when the data reflecting the actual cost to school administrative units will be included in the calculation of 
essential programs and services. 
LR2119(02) - Fiscal Note - Page 1 of 1