An Act To Protect School Administrative Units from a Sudden Decrease in Funding due to Reduced Enrollments
Maine Legislature, Session 126, LD 0615
Committee: Education and Cultural Affairs
Sponsors: McCABE, CAIN
Amends: 20-A MRSA §2413-A

Legislative Document 
No. 615 
H.P. 434 
House of Representatives, February 21, 2013 
An Act To Protect School Administrative Units from a Sudden 
Decrease in Funding due to Reduced Enrollments 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative McCABE of Skowhegan. 
Cosponsored by Senator CAIN of Penobscot. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §2413-A is enacted to read: 
§2413-A.  Reimbursement for sudden and severe loss of funding 
1.  Request for reimbursement.  A school administrative unit that has suffered a 
sudden and severe loss of funding as a result of the enrollment of students from that unit 
in public charter schools as described in subsection 2 may request reimbursement of a 
portion of those funds under this section.  A school administrative unit requesting 
reimbursement of funds under this section must file a petition, with supporting 
documentation, with the commissioner and specify the fiscal year for which the 
reimbursement is being requested. 
2.  Sudden and severe loss of funding.  A school administrative unit has suffered a 
sudden and severe loss of funding if 10 or more students who are eligible for enrollment 
in schools in that unit in the fiscal year for which the reimbursement is being requested 
who enrolled in schools in that unit in the immediately preceding fiscal year have instead 
enrolled in public charter schools.  A school administrative unit requesting 
reimbursement of funds under this section must submit a separate petition and supporting 
documentation for each fiscal year in which the unit has suffered a sudden and severe loss 
of funding. 
3.  Supporting documentation.  A school administrative unit filing a petition under 
this section must submit a detailed list of the qualifying students from that unit who 
enrolled in public charter schools for the fiscal year in which the reimbursement is being 
requested. 
4.  Commissioner review and determination.  On receipt of a petition by a school 
administrative unit for reimbursement under this section, the commissioner shall examine 
the documentation provided by the unit and determine if the unit qualifies for 
reimbursement.  If the commissioner determines that the school administrative unit 
qualifies for reimbursement, the commissioner must calculate the amount of the 
reimbursement for the unit as follows: 
A.  For the first fiscal year in which the school administrative unit suffers a sudden 
and severe loss of funding as described under subsection 1, the State must reimburse 
the unit for 75% of the total amount of per-pupil allocations calculated pursuant to 
section 2413 that have been forwarded to public charter schools; and 
B.  For the fiscal year after the fiscal year in which the school administrative unit 
suffers a sudden and severe loss of funding, the State must reimburse the unit for 
40% of the reimbursement amount calculated under paragraph A. 
The reimbursement amounts calculated under this subsection must be paid by the State to 
the school administrative unit in the same manner and on the same schedule as units are 
required to forward per-pupil allocations to public charter schools under section 2413. 
5.  Qualifying determination and notice.  If the commissioner determines that the 
petition and documentation submitted by a school administrative unit pursuant to 
subsection 2 are sufficient to qualify the unit for reimbursement pursuant to subsection 4, 
the commissioner must notify the unit within 30 days of the receipt of the petition by the 
commissioner.  The notice provided by the commissioner to the school administrative 
unit must include the amount of the reimbursement calculated under subsection 4 and the 
date by which the unit will receive the first quarterly payment of that reimbursement from 
the State. 
6.  Nonqualifying determination; notice and amended petition.  If the 
commissioner determines that the petition and supporting documentation submitted by a 
school administrative unit pursuant to subsection 2 are incomplete or do not provide 
information sufficient to qualify the unit for reimbursement pursuant to subsection 4, the 
commissioner must notify the unit within 30 days of receipt of the petition by the 
department. The school administrative unit may submit an amended petition no later than 
days from receipt of the notice of a nonqualifying determination by the commissioner 
for reconsideration.  A school administrative unit that fails to submit an amended petition 
within 30 days forfeits its right to receive reimbursement for the fiscal year addressed in 
the petition.  The commissioner may not deny reimbursement to a school administrative 
unit that provides sufficient documentation that the unit meets the qualifying criteria 
established under this section or by rule. 
7.  Rules.  The department may adopt rules governing the petition process and the 
documentation required to qualify for reimbursement under this section.  Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
SUMMARY 
This bill allows a school administrative unit to request reimbursement from the State 
when the unit has experienced a sudden and severe loss of funding due to the enrollment 
of students from that unit in public charter schools.  The bill establishes criteria that a 
school administrative unit must meet to qualify for reimbursement.  It also establishes a 
process by which school administrative units may petition the Commissioner of 
Education for reimbursement of a portion of the lost funds.  The bill also establishes a 
reimbursement formula that the commissioner must use to calculate reimbursement 
amounts for qualifying school administrative units.