An Act To Amend the Laws Related to Public Funding of Charter Schools Amend the.bill in section 5 in §2413-A in subsection 2 in paragraph A by striking out all of subparagraph (3) (page 3, lines 8 to 12 in L.D.) and inserting the following: (3) For transportation expenses, the transportation operating allocation must be the statewide per-pupil essential programs and services transportation operating allocation multiplied by pupil counts determined under section 15683-B, subsection 2, paragraph A mUltiplied by the percentage established by the commission for the public charter school based on the cost of transportation services provided by the public charter school to the student, but not to exceed 100%.
Maine Legislature, Session 127, LD 0131
Committee Amendment CA_A_H38 (House)
Amends: 20-A MRSA §15683-B, 20-A MRSA §15689-D

COMMITTEE AMENDMENT "A " 
to H.P. 89, L.D. 131, Bill, "An Act To Amend 
the Laws Related to Public Funding of Charter Schools" 
Amend the.bill in section 5 in §2413-A in subsection 2 in paragraph A by striking out 
all of subparagraph (3) (page 3, lines 8 to 12 in L.D.) and inserting the following: 
'(3) For transportation expenses, the transportation operating allocation must be 
the statewide per-pupil essential programs and services transportation operating 
allocation multiplied by pupil counts determined under section 15683-B, 
subsection 2, paragraph A mUltiplied by the percentage established by the 
commission for the public charter school based on the cost of transportation 
services provided by the public charter school to the student, but not to exceed 
100%.' 
Amend the bill in section 5 in §2413-A in subsection 2 by striking out all of 
paragraphs Band C (page 3, lines 17 to 42 in L.D.) and inserting the following: 
'B. The following provisions govern special education funding. 
(1) For each enrolled special education student, a public charter school must 
receive the average additional allocation calculated by the department under 
section 15681-A, subsection 2 for its special education students. 
These 
allocations must be paid on the same basis as the per-pupil allocations for 
operati~g funds. 
(2) The department shall pay directly to a public charter school any federal or 
state aid attributable to a student with a disability attending the public charter 
school in proportion to the level of services for the student with a disability that 
the public charter school provides directly or indirectly. 
(3) The department shall pay to a public charter school any additional allocation 
assigned to the public charter school because of a high-cost in-district special 
education placement in accordance with section 15681-A, subsection 2, 
paragraph B in the year in which the allocation is assigned as an adjustment to 
the public charter school's state contribution. 
Page I - 127LR02S2(02)-1 
COMMITTEE AMENDMENT 
I 
"-
COMMITTEE AMENDMENT "A "to H,P, 89, L.D, 131 
(4) The department shall pay to a public charter school any additional allocation 
assigned to the school administrative unit because of a high-cost out-of-district 
special education placement in accordance with section 15681-A, subsection 2, 
paragraph C in the year in which the allocation is assigned. 
C. 
Except as otherwise provided in this chapter, the State shall send applicable 
federal funds directly to public charter schools attended byeJigible students. Public 
charter schools with students eligible for funds under Title I of the federal Elementary 
and Secondary Education Act of 1965, 20 United States Code, Section 630 I et seq. 
must receive and use these funds in accordance with federal and state law. During 
the first year of operation, a public charter school must receive Title I funds on the 
basis of an estimated enrollment of elilgible students, as determined by its authorizer.' 
Amend the 'bill in section 5 in §2413-A in subsection 2 by inserting after paragraph G 
the foIl owing: 
'H. 
A public charter school may receive payment pursuant to paragraph A for 
students residing in the unorganized territory based on the state average EPS per-
pupil rate as defined in section 15672, subsection 7-A. A special education student 
residing in the unorganized territory must be treated the same as a resident student 
from a school administrative unit for special education costs pursuant to paragraph B. 
The responsibility for providing a free, appropriate public education for a special 
education student passes to the charte:r school in which the student enrolls. As with 
other resident school administrative units in accordance with section 15681-A, 
subsection 2, paragraph B, the department shall pay for high-cost in-district students.' 
Amend the bill by striking out all of section 6 (page 4, lines 16 to 40, page 5, lines 1 
to 40, page 6, lines I to 41 in L.O.) and inserting the following: 
'Sec. 6. 20-A MRSA §15683-B is ~~nacted to read: 
§15683-B. 
Public charter schools; calculation of total allocation and state 
contribution 
I 
, 
Beginning with fiscal year 2015-16, this section applies to public charter schools 
authorized by the Maine Charter School Commission, established under Title 5, section 
12004-G, subsection 10-0, in accordance with the funding provisions established in 
section 2413-A. 
1. Calculation of EPS per-pupil rates. If there is only one school administrative 
unit sending students to a public charter school in a school year. the commissioner shaH 
use that resident school administrative unit's EPS per-pupil rate. If there is more than one 
school administrative unit sending students to the public charter school, the commissioner 
shall calculate a public charter school's EPS per-pupil rate for each year as follows. 
A. 
When there are elementary studl~nts from outside of a single resident school 
administrative unit sending students to an elementary public charter school. the EPS 
per-pupil rate for elementary grades is calculated by multiplying the number of 
students from a resident school administrative unit attending the public charter school 
by that resident school administrative unit's elementary EPS per-pupil rate to find the 
total cost for elementary students enrolled in the public charter school in that resident 
school administrative unit, then adding: the total cost for elementary students enrolled 
COMMITTEE' AMENDMENT 
'# 
COMMITTEE A~ENDMENT"A" to H.P. 89, L.D. 131 
I 
in the public charter school from each resident school administrative unit. The result 
is divided by the total number of elementary students in the public charter school. 
B. 
When there are secondary students from outside of a single resident school 
administrativ,e unit sending students to a secondary public charter school, the EPS 
per-pupil rate for secondary grades is calculated by mUltiplying the number of 
students from a resident school administrative unit attending the public charter school 
by that resident school administrative unit's secondary EPS per-pupil rate to find the 
total cost for secondary students enrolled in the public charter school in that resident 
school administrative unit, then adding the total cost for secondary students enrolled 
in the public charter school from each resident school administrative unit. The result 
is divided by the total number of secondary students in the public charter school. 
2. Pupil counts. Notwithstanding section 15674, the commissioner shall determine 
a public charter school's student counts for each year as follows. 
A. The basic student count for a public charter school is the pupil count for October 
I st of the most recent calendar year prior to the year of funding. 
B. 
The number of economically disadvantaged students for each public charter 
school is determined by multiplying the number of students at the public charter 
school by the most recent available elementary free or reduced-price meals 
percentage for that public charter school. The elementary free or reduced-price meals 
percentage may be applied to determine the number of economically disadvantaged 
students in the public charter school secondary grades. If the public charter school 
does not operate elementary grades, the most recent available secondary free or 
reduced-price meals percentage must be used in place of the elementary free or 
reduced-price meals percentage. 
C. The number of limited English proficiency students for each public charter school 
is the number of limited English proficiency students from the most recent October 
count prior to the year of funding. 
D. The number of special education students for each public charter school is the 
number of special education students from the most recent October count prior to the 
year of funding. 
3. 
Operating allocation. . The commissioner shall determine a public charter 
school's operating allocation for each year as the sum of: 
A. The base allocation, which is the pupil count pursuant to subsection 2, paragraph 
A multiplied by the public charter school's EPS per-pupil rates calculated pursuant to 
subsection I; 
B. The economically disadvantaged student allocation, which is the pupil count 
determined pursuant to subsection 2, paragraph B multiplied by the additional weight 
for each economically disadvantaged student pursuant to section 15675, subsection 2; 
C. The limited English proficiency student allocation, which is the pupil count 
pursuant to subsection 2, paragraph C multiplied by the additional weight for each 
limited English proficiency student pursuant to section 15675, subsection 1; 
COMMITTEE AMENDMENT 
" 
COMMITTEE AMENDMENT "A" to H.P. 89, L.D. 131 
D. The targeted funds for standards··based system allocation, which is based on the 
per-pupil amount pursuant to section 15683, subsection 1, paragraph C multiplied by 
the pupil count pursuant to subsection 2, paragraph A; 
E. The targeted funds for technology resource allocation, which is based on the per-
pupil amount pursuant to section 15683, subsection I, paragraph D multiplied by the 
pupil count in subsection 2, paragraph A; and 
F. The targeted funds for public preschool to grade 2 student allocation, which is 
based on the preschool to grade 2 pupil count pursuant to subsection 2, paragraph A 
multiplied by the public charter school's elementary EPS per-pupil rates in subsection 
.L 
II 
The operating allocation calculated pursuant to this subsection must be adjusted by 
multiplying it by the appropriate transition percentage in accordance with section 15671, 
I3 
subsection 7. 
4. Other subsidizable costs allocation. The commissioner shall determine a public 
charter school's other subsidizable costs allocation for each year as the sum of: 
A. 
The gifted and talented allocation pursuant to section 2413-A, subsection 2, 
paragraph A, subparagraph (4); 
B. 
The special education allocation pursuant to section 2413-A, subsection 2, 
paragraph B. The special education allocation may not be less than 90% of the public 
charter school base year expenditures for special education; and 
. C. The transportation operating allocation, which is the statewide per-pupil essential 
programs and services transportation operating allocation multiplied by a percentage 
established by the Maine Charter School Commission for that public charter school 
based on the cost of transportation services provided by the public charter school to 
the student but not to exceed 100% multiplied by the pupil count in subsection 2, 
paragraph A. 
A public charter school is not entitled to career and technical education funding. The 
school administrative unit in which the public charter school student resides must pay the 
cost of attendance for the student at a career and technical education program. 
5. Total allocation and state contriibution. The commissioner shall determine a 
public charter school's total allocation as: the sum of the school's operating allocation 
under subsection 3 and other subsidizable costs allocation under subsection 4. That total 
allocation is the state contribution, except that up to 3% of this amount must be withheld 
in accordance with section 2405, subsection 5, paragraph B and transferred to the Maine 
Charter School Commission. 
6. Payment of state contribution. The commissioner shall authorize state subsidy 
payments to be made to public charter schools in accordance with the same schedule of 
payments for school administrative units pursuant to section 15689-B. 
7. MaineCare seed. The commissioner may deduct from a public charter school's 
state subsidy arid pay on behalf of the public charter school allowable school-based costs 
that represent the public charter school's portion of MaineCare payments. A transfer of 
payment by the department to the Department of Health and Human Services must be 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 89, L.D. 131 
made pursuant to a schedule agreed upon by the Department of Health and Human 
Services and the department and based on documentation of payments made from 
MaineCare funds. 
8. Curtailment adjustment. In any funding year, if general purpose aid for local 
schools funding is curtailed, then the public charter school state contribution under this 
chapter must be curtailed by the proportional percentage that school administrative units 
have been curtailed. 
9. Phase-in procedures for new or newly expanded public charter schools. For 
new or newly expanded public charter schools, the commissioner shall make a 
preliminary calculation of total allocation based on the following: 
A. Estimated student counts not to exceed the enrollment limit established by the 
Maine Charter School Commission; 
B. Estimated rates and weights based on statewide averages; and 
C. 
The preliminary calculation of total allocation, which must be replaced with 
actual student data once students have been enrolled for the new school year. The 
new or newly expanded public charter school shall enroll new students no Jater than 
August 1 st in a student information system maintained by the department.' 
Amend the bill in section 7 in subsection 2-A in the last line (page 7, line 5 in L.D.) 
by inserting after the following: "15683-B" the following: 'and post these estimated 
contributions on the department's publicly accessible website' 
Amend the bill by striking out all of section 9 and inserting the following: 
'Sec. 9. 20-A MRSA §15689-D, as amended by PL 2013, c. 368, Pt. C, §18, is 
further amended to read: 
§15689-D. Governor's recommendation for funding levels 
1. Annual recommendations. The Department of Administrative and Financial 
Services, Bureau of the Budget shall annually certify to the Legislature the funding levels 
that the Governor recommends under sections 15683, 15683-A, 15683-B, 15688-A, 
15689 and 15689-A and the amount for any other components of the total cost of funding 
public education from kindergarten to grade 12 pursuant to this chapter. The Governor's 
recommendations must be transmitted to the Legislature within the time schedules set 
forth in Title 5, section 1666 and in the form and manner described in subsection 2 and 
these recommendations must be posted on the department's publicly accessible website. 
The commissioner may adjust, consistent with the Governor's recommendation for 
funding levels, per-pupil amounts not related to staffing pursuant to section 15680 and 
targeted funds pursuant to section 15681. 
2. 
Funding level computations. 
The Governor's recommendations under 
subsection 1 must specify the amounts that are recommended for the total operating 
alloeation allocations pursuant to section 15683 including the total allocation pursuant to 
section 15683-B, the total of other subsidizable costs pursuant to section 15681-A, the 
total debt service allocation pursuant to section 15683-A, the total costs of enhancing 
student performance and opportunity pursuant to section 15688-A, the total adjustments 
pursuant to section 15689, the total miscellaneous costs pursuant to section 15689-A, the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 89, L.D. 131 
I 
amount for any other components of the total cost of funding public education from 
kindergarten to grade 12 and the total cost of funding public education from kindergarten 
to grade 12 pursuant to this chapter. The Governor's recommendations regarding the 
adjustments and miscellaneous costs components also must delineate each amount that is 
recommended for each subsection and paragraph under sections 15689 and 15689-A and 
the purposes for each cost in these sections. For each amount shown in the Governor's 
recommendations, the Governor's recommendations must also show the amount for the 
same component or purpose that is included in the most recently approved state budget, 
the differences between the amounts in the most recently approved state budget and the 
Governor's recommendations and the reasons for the changes. These computations must 
II 
be posted on the department's publicly acce:ssible website.' 
Amend the bill by striking out all ofse(;tions 12 and 13 (page 8, lines 8 to 28 in L.D.) 
SUMMARY 
This amendment provides clarification to the provisions established to fund public 
IS 
charter schools that are authorized by the Maine Charter School Commission beginning 
in fiscal year 2015-16. The amendment ac(:omplishes the following: 
1. It adds a provision to provide that a public charter school may receive payment for 
students residing in the unorganized territory and provides that a special education 
student residing in the unorganized territory must be treated the same as a resident student 
from a school administrative unit for purposes of special education costs; 
2. It amends the calculation of the total allocation and state contribution for a public 
charter school to provide that the EPS per-pupil rate is different when only one school 
administrative unit sends students to a public charter school as compared to the EPS per-
pupil rate when there is more than one school administrative unit sending students to the 
public charter school; 
3. It amends the student count used for the determination of the EPS per-pupil rates 
for public charter schools by providing that the basic student count is the October 1st 
student count of the most recent calendar y(:ar prior to the year of funding; 
4. It amends the provision related to the total allocation and state contribution for 
public charter schools to provide that up to 3% of this amount must be withheld and 
transferred to the Maine Charter School Commission in accordance with the Maine 
Revised Statutes, Title 20-A, section 2405, subsection 5, paragraph 8; 
5. 
It removes the provision that establishes a moratorium on the approval of, 
authorization of and execution of contracts for virtual public charter schools by the Maine 
Charter School Commission; 
6. It removes the provision that requires the Maine Charter School Commission to 
review the virtual public charter school models in other states and to submit a report to 
the joint standing committee of the Legislature having jurisdiction over education and 
cultural affairs; and 
7. It amends the provisions that require the Commissioner of Education and the 
Governor to notifY the governing board of each public charter school of the estimated 
amount of state contributions and the recommended funding level computations that must 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A " 
(0 H.P. 89, L.D. 131 
be allocated to the public charter school pursuant to the Maine Revised Statutes, Title 
20-A, section 15683-B to provide that these estimated contributions must be posted on 
the Department of Education's publicly accessible website. 
FISCAL .\OTE REQUREU 
(See attached) 
COMMITTEE AMENDMENT 
• 
Approved: 04/0411 5 
~C 
127th MAINE IJEGISLATURE 
LD 131 
LR 282(02) 
An Act To Amend the Laws Related 1to Public Funding of Charter Schools 
Fiscal Note for Bill as Amended by Committee Amendment 'A, (H-ag) 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
Fiscal Detail and Notes 
This bill changes the way funding for students who attend authorized public charter schools is provided beginning in 
the 2015-2016 school year. Current law requires the school administrative unit (SAU) in which the student resides to 
forward the per-pupil allocation to the public charter school that the student is attending pursuant to Title 20-A, 
§2413. This legislation proposes to include the cost for authorized public charter schools in the total cost of funding 
public education from kindergarten to grade 12 with the State providing payments for the public charter schools total 
allocation directly to the charter school. This change in methodology shifts the responsibility for funding the local 
share of the cost of sending students to charter schools from the resident school administrative unit to all school 
administrative units. 
The provision in section 6, sub-section 9 of this legislation, which requires a preliminary calculation of the total 
allocation for charter schools based on estimated student COtlJ;lts, increases the total state and local cost of funding 
public education beginning in fiscal year 2015-16 due to those students being included in student counts for both a 
publjc school and a charter school. The Department ofEduc.ation estimates the total state and local cost of this 
provision to be approximately $12.0 million in fiscal year 20115-16 and $13.8 million ,in fiscal year 2016-17. ' 
The Governor's proposed budget for the 2016-2017 biennium includes additional General Fund appropriations of 
$17.9 million in fiscal year 2015-16 and $19.9 million in fiscal year 2016-17 and additional Other Special Revenue 
Funds allocations of $2.4 million and $2.6 million in fiscal years 2015-16 and 2016-17, respectively, for the General 
Purpose Aid for Local Schools program. Of these amounts, approximately $14.5 million in fiscal year 2015-16 and 
$15.8 million in fiscal year 2016-17 are targeted for specific initiatives, leaving approximately $5.7 million in fiscal 
year 2015-16 and $6.7 million in fiscal year 2016-17 to be distributed as subsidy to local school administrative units. 
According to the Department of Education, these funds will be used to support the State's share of the increased costs 
associated with changing the way funding for authorized public charter schools is determined. 
This fiscal note assumes that funding for this legislation will be approved as part of the Governor's proposed 2016-
2017 biennial budget and, therefore, no General Fund appropriations are included in this bill. This fiscal note may 
need to be adjusted based on final legislative actions of the 127th Legislature, 1st Regular Session. 
All MaineCare school-based costs are reimbursed by Department of Education, based on an agreed upon schedule. 
This bill changes who may be submitting some of the claims, but does not change the basics of this arrangement. 
LR0282(02) - Fiscal Note - Page 1 of I