An Act To Limit the Amount of Money a Municipality May Spend on Education
Maine Legislature, Session 127, LD 0728
Committee: Education and Cultural Affairs
Sponsors: WOODSOME
Amends: 20-A MRSA §15688, 36 MRSA §7301

Legislative Document 
No. 728 
S.P. 258 
In Senate, March 5, 2015 
An Act To Limit the Amount of Money a Municipality May Spend 
on Education 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator WOODSOME of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §15688, sub-§3-A, as amended by PL 2007, c. 668, §§36 
and 37, is further amended to read: 
3-A.  School administrative unit; contribution.  For each school administrative 
unit, the commissioner shall annually determine the school administrative unit's required 
contribution, the required contribution of each municipality that is a member of the unit, 
if the unit has more than one member, and the State's contribution to the unit's total cost 
of education in accordance with the following. 
A.  For a school administrative unit composed of only one municipality, the 
contribution of the unit and the municipality is the same and is the lesser least of: 
(1)  The total cost described in subsection 1; and 
(2)  The total of the full-value education mill rate calculated in section 15671-A, 
subsection 2 multiplied by the property fiscal capacity of the municipality.; and 
(3)  Fifty-five percent of the state valuation of all property in the municipality 
subject to taxation as certified by the Department of Administrative and Financial 
Services, Bureau of Revenue Services pursuant to Title 36, section 305, 
subsection 1 unless a majority of the elected municipal officials approve raising a 
higher amount. 
B.  Except as provided in paragraph B-1, for For a school administrative district, 
community school district or regional school unit composed of more than one 
municipality, each municipality's contribution to the total cost of education is the 
lesser least of: 
(1)  The municipality's total cost as described in subsection 2; and 
(2)  The total of the full-value education mill rate calculated in section 15671-A, 
subsection 2 multiplied by the property fiscal capacity of the municipality.; and 
(3)  Fifty-five percent of the state valuation of all property in the municipality 
subject to taxation as certified by the Department of Administrative and Financial 
Services, Bureau of Revenue Services pursuant to Title 36, section 305, 
subsection 1 unless a majority of the elected municipal officials approve raising a 
higher amount. 
C.  For a school administrative district, community school district or regional school 
unit composed of more than one municipality, the unit's contribution to the total cost 
of education is the lesser least of: 
(1)  The total cost as described in subsection 1; and 
(2)  The sum of the totals calculated for each member municipality pursuant to 
paragraph B, subparagraph (2).; and 
(3)  Fifty-five percent of the state valuation of all property in each member 
municipality subject to taxation as certified by the Department of Administrative 
and Financial Services, Bureau of Revenue Services pursuant to Title 36, section 
305, subsection 1 unless a majority of the elected municipal officials approve 
raising a higher amount. 
D.  The state contribution to the school administrative unit's total cost of education is 
the total cost of education calculated pursuant to subsection 1 less the school 
administrative unit's contribution calculated pursuant to paragraph A or C, as 
applicable.  The state contribution is subject to reduction in accordance with section 
15690, subsection 1, paragraph C. 
Sec. 2.  36 MRSA §7301, as enacted by PL 2005, c. 2, Pt. H, §2, is amended to 
read: 
§7301.  Tax burden reduction goals and policies 
It is the goal and policy of the State that by 2015 the State's total state and local tax 
burden be ranked in the middle 1/3 of all states, as determined by the United States 
Census Bureau's most recent tax burden analysis, adjusted by the assessor to reflect the 
State's unique expenditure tax relief programs. 
It is the goal and policy of the State that additional state funds provided to 
municipalities through increases in the state share of education funding under the 
essential programs and services funding model must, to the greatest possible extent, be 
available for statewide property tax reduction. 
Notwithstanding any other provision of law, it is the goal and policy of the State that, 
for tax years beginning on or after January 1, 2016, the amount of property taxes 
distributed by a municipality for education under the essential programs and services 
funding model, pursuant to Title 20-A, chapter 606-B, not exceed 55% of the state 
valuation of the municipality's property subject to the valuation filed with the Secretary of 
State pursuant to section 305, subsection 1. 
SUMMARY 
This bill provides that, beginning with the 2016 tax year, it is the goal and policy of 
the State that the amount of property taxes distributed by a municipality for education 
under the Essential Programs and Services Funding Act may not exceed 55% of the state 
valuation of the municipality's property subject to the valuation filed with the Secretary of 
State.  The bill also provides that a municipality is not required to pay more than 55% of 
the funds raised by local property taxes for the municipality's required contribution to the 
school administrative unit's total cost of education unless a majority of the elected 
officials of the municipality approve raising and expending funds appropriated through 
local taxation for educational purposes that exceed 55% of the state valuation of the 
municipality's property.