An Act To Change the State's Share of Education Costs Including Teacher Retirement Costs
Maine Legislature, Session 126, LD 0994
Committee: Education and Cultural Affairs
Sponsors: SHERMAN
Amends: 5 MRSA §17154, 20-A MRSA §15671, 20-A MRSA §15671-A, 20-A MRSA §15688, 20-A MRSA §15689-C, 20-A MRSA §15689-E, 20-A MRSA §15752

Legislative Document 
No. 994 
S.P. 339 
In Senate, March 12, 2013 
An Act To Change the State's Share of Education Costs Including 
Teacher Retirement Costs 
(EMERGENCY) 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator SHERMAN of Aroostook. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation makes changes to the funding of teacher retirement that 
need take effect by the beginning of fiscal year 2013-14; 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 enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §17154, sub-§6, ¶¶G to I are enacted to read: 
G.  Notwithstanding this section, beginning in fiscal year 2013-14, the employer 
retirement costs that are applicable to the normal cost of retirement and the actual 
unfunded liability for a teacher must be included in the total allocation in accordance 
with Title 20-A, chapter 606-B for the school administrative unit, as defined in Title 
20-A, section 1, subsection 26, that employs the teacher. 
H.  Notwithstanding this section, beginning in fiscal year 2013-14, the employer 
retirement costs and administrative operating expenses related to the retirement 
programs applicable to teachers employed by school administrative units, as defined 
in Title 20-A, section 1, subsection 26, whose funding is provided from local and 
state funds must be paid by local school administrative units. 
I.  Notwithstanding this section, beginning in fiscal year 2013-14, the employer 
retirement costs and administrative operating expenses related to the retirement 
programs applicable to teachers employed by private schools, as defined in Title 
20-A, section 1, subsection 22, must be paid by the private school. 
Sec. 2.  20-A MRSA §15671, sub-§7, ¶C, as amended by PL 2011, c. 655, Pt. C, 
§4, is further amended to read: 
C.  Beginning in fiscal year 2011-12, the annual targets for the state share percentage 
of the total cost of funding public education from kindergarten to grade 12 including 
the cost of the components of essential programs and services plus the state 
contributions to teacher retirement, retired teachers' health insurance and retired 
teachers' life insurance are as follows. 
(1)  For fiscal year 2011-12, the target is 49.47%. 
(2)  For fiscal year 2012-13, the target is 50%. 
(3)  For fiscal year 2013-14 and succeeding years, the target is 55% 52%. 
Sec. 3.  20-A MRSA §15671-A, sub-§2, ¶B, as amended by PL 2011, c. 655, Pt. 
C, §5, is further amended to read: 
B.  For property tax years beginning on or after April 1, 2005, the commissioner shall 
calculate the full-value education mill rate that is required to raise the statewide total 
local share.  The full-value education mill rate is calculated for each fiscal year by 
dividing the applicable statewide total local share by the applicable statewide 
valuation.  The full-value education mill rate must decline over the period from fiscal 
year 2005-06 to fiscal year 2008-09 and may not exceed 9.0 mills in fiscal year 2005-
and may not exceed 8.0 mills in fiscal year 2008-09.  The full-value education mill 
rate must be applied according to section 15688, subsection 3-A, paragraph A to 
determine a municipality's local cost share expectation.  Full-value education mill 
rates must be derived according to the following schedule. 
(1)  For the 2005 property tax year, the full-value education mill rate is the 
amount necessary to result in a 47.4% statewide total local share in fiscal year 
2005-06. 
(2)  For the 2006 property tax year, the full-value education mill rate is the 
amount necessary to result in a 46.14% statewide total local share in fiscal year 
2006-07. 
(3)  For the 2007 property tax year, the full-value education mill rate is the 
amount necessary to result in a 46.49% statewide total local share in fiscal year 
2007-08. 
(4)  For the 2008 property tax year, the full-value education mill rate is the 
amount necessary to result in a 47.48% statewide total local share in fiscal year 
2008-09. 
(4-A)  For the 2009 property tax year, the full-value education mill rate is the 
amount necessary to result in a 51.07% statewide total local share in fiscal year 
2009-10. 
(4-B)  For the 2010 property tax year, the full-value education mill rate is the 
amount necessary to result in a 54.16% statewide total local share in fiscal year 
2010-11. 
(4-C)  For the 2011 property tax year, the full-value education mill rate is the 
amount necessary to result in a 53.98% statewide total local share in fiscal year 
2011-12. 
(5)  For the 2012 property tax year, the full-value education mill rate is the 
amount necessary to result in a 53.40% statewide total local share in fiscal year 
2012-13. 
(6) For the 2013 property tax year, the full-value education mill rate is the 
amount necessary to result in a 47.50% statewide total local share in fiscal year 
2013-14. 
(7) For the 2014 property tax year and subsequent tax years, the full-value 
education mill rate is the amount necessary to result in a 45% 48% statewide total 
local share in fiscal year 2014-15 and after. 
Sec. 4.  20-A MRSA §15688, sub-§1, ¶¶B and C, as amended by PL 2005, c. 2, 
Pt. D, §53 and affected by §§72 and 74 and c. 12, Pt. WW, §18, are further amended to 
read: 
B.  The other subsidizable costs described in section 15681-A; and 
C.  The total debt service allocation described in section 15683-A.; and 
Sec. 5.  20-A MRSA §15688, sub-§1, ¶D is enacted to read: 
D.  Beginning in the 2013-14 funding year, the normal cost of retirement and actual 
unfunded liability for a teacher pursuant to Title 5, section 17154, subsection 6. 
Sec. 6.  20-A MRSA §15689-C, sub-§2, ¶¶C and D, as enacted by PL 2005, c. 
2, Pt. D, §61 and affected by §§72 and 74 and c. 12, Pt. WW, §18, are amended to read: 
C.  The requested funding levels for adjustments under section 15689, which must be 
computed by estimating costs for the allocation year; and 
D.  The requested funding levels for miscellaneous costs under section 15689-A.; and 
Sec. 7.  20-A MRSA §15689-C, sub-§2, ¶E is enacted to read: 
E.  The normal costs and actual unfunded liability of teacher retirement pursuant to 
Title 5, section 17154, subsection 6. 
Sec. 8.  20-A MRSA §15689-E, sub-§1, ¶B, as enacted by PL 2005, c. 2, Pt. D, 
§61 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read: 
B.    The state share of the total operating allocation and the total debt service 
allocation described in sections 15683 and 15683-A; and 
Sec. 9.  20-A MRSA §15689-E, sub-§1, ¶C is enacted to read: 
C.  The state share of the total normal cost and actual unfunded liability of teacher 
retirement pursuant to Title 5, section 17154, subsection 6; and 
Sec. 10.  20-A MRSA §15752, first ¶, as enacted by PL 2005, c. 2, Pt. D, §63 
and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read: 
In accordance with the phase-in schedule provided in chapter 606-B, beginning in 
fiscal year 2008-09 2013-14, the Legislature each year shall provide at least 55% 52% of 
the cost of the total allocation for kindergarten to grade 12 education from General Fund 
revenue sources. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill provides that the total cost of teacher retirement, including the normal cost 
and the actual unfunded liability, must be funded through the state and local cost-sharing 
formula for funding public education from kindergarten to grade 12.  The bill also 
changes the target for the state share of the total costs of education from 55% to 52%.