Resolve, Directing the University of Maine System and the Maine Community College System To Study the Establishment of a Pilot Program Based on Oregon's "Pay Forward, Pay Back" Model of Funding Public Postsecondary Education
Maine Legislature, Session 126, LD 1702
Committee: Education and Cultural Affairs
Sponsors: KATZ, POULIOT, BEAVERS, HUBBELL

Legislative Document 
No. 1702 
S.P. 667 
In Senate, January 8, 2014 
Resolve, Directing the University of Maine System and the Maine 
Community College System To Study the Establishment of a Pilot 
Program Based on Oregon's "Pay Forward, Pay Back" Model of 
Funding Public Postsecondary Education 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Representative POULIOT of Augusta and 
Representatives: BEAVERS of South Berwick, HUBBELL of Bar Harbor. 
Sec. 1.  Study establishment of pilot program. Resolved: That the University 
of Maine System and the Maine Community College System, referred to in this resolve as 
"the systems," shall together study the establishment of a pilot program based on 
Oregon's "Pay Forward, Pay Back" model that would replace the current system of 
charging a resident of the State tuition and fees for enrollment at a state public institution 
of higher education, referred to in this resolve as "an institution," and: 
1.  Allow a student who is a resident of the State and who qualifies for admission to 
an institution to enroll in the institution without paying tuition or fees; 
2.  Provide that, in lieu of paying tuition or fees, the student must sign a binding 
contract to pay to the State or the institution for a specified number of years a certain 
percentage of the student's annual adjusted gross income upon graduation from the 
institution;  
3.  Specify the number of years and the percentage of annual adjusted gross income 
for contracts at each participating institution and base the specifications on research to 
date; and 
4.  Establish a funding source for the first 15 to 20 years of the pilot program and a 
revolving fund into which payments made under the pilot program are deposited to 
provide long-term funding. 
A pilot program proposed by the systems may include variations by specific 
institution depending on the total cost of education at the institution, the portion of the 
cost that is paid by the State, the number of years of student repayment specified in the 
contract and the percentage of annual adjusted gross income specified in the contract; and 
be it further 
Sec. 2.  Report; recommendations.  Resolved:  That the systems shall submit a 
report containing their findings and recommendations pursuant to section 1, including any 
necessary implementing legislation, to the joint standing committee of the Legislature 
having jurisdiction over education matters by December 3, 2014.  If the report 
recommends establishment of the pilot program, the report must identify one or more 
institutions that will participate in the pilot program. 
SUMMARY 
This resolve directs the University of Maine System and the Maine Community 
College System to study the establishment of a pilot program based on Oregon's "Pay 
Forward, Pay Back" model to replace the current system of charging a resident of the 
State tuition and fees for enrollment at a state public institution of higher education.  
Under the pilot program, a student who is a resident of the State and who qualifies for 
admission to an institution would be able to enroll in the institution without paying tuition 
or fees; instead, the student would sign a binding contract to pay to the State or the 
institution for a specified number of years a certain percentage of the student's annual 
adjusted gross income upon graduation from the institution.  Under the resolve, the 
University of Maine System and the Maine Community College System are directed to 
report their findings and any proposed implementing legislation to the joint standing 
committee of the Legislature having jurisdiction over education matters by December 3, 
2014.