An Act to Provide an Additional Allocation in the School Funding Formula to Cover Tax-exempt Property or a Large Economically Disadvantaged Student Population
Maine Legislature, Session 131, LD 1402
Committee: Education and Cultural Affairs
Sponsors: BRENNAN, PIERCE, CLOUTIER, COLLINGS, CROCKETT, GEIGER, LOOKNER, MOONEN, SHEEHAN, TERRY
Amends: 20-A MRSA §15689

Legislative Document
No. 1402
H.P. 897
House of Representatives, March 28, 2023
An Act to Provide an Additional Allocation in the School Funding 
Formula to Cover Tax-exempt Property or a Large Economically 
Disadvantaged Student Population
(EMERGENCY)
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative BRENNAN of Portland.
Cosponsored by Senator PIERCE of Cumberland and
Representatives: CLOUTIER of Lewiston, COLLINGS of Portland, CROCKETT of Portland, 
GEIGER of Rockland, LOOKNER of Portland, MOONEN of Portland, SHEEHAN of 
Biddeford, TERRY of Gorham.
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 must be enacted before the expiration of the 90-day period 
so that the State Controller may transfer on June 30, 2023 the unencumbered balances 
remaining in the Department of Education, General Purpose Aid for Local Schools 
program, General Fund account that otherwise would be carried forward into the next fiscal 
year; 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.  20-A MRSA §15689, sub-§17 is enacted to read:
17.  Tax-exempt property or economically disadvantaged student adjustment.  
Beginning in fiscal year 2024-25, and for each subsequent fiscal year, a school 
administrative unit may receive an adjustment if:
A.  At least 15% of the property within the school administrative unit is tax-exempt 
property that cannot be taxed to support public education in the school administrative 
unit; or
B.  At least 50% of the students within the school administrative unit are economically 
disadvantaged students. An adjustment under this paragraph must be in addition to any 
adjustment under subsection 11.
The Education Investment Account, referred to in this subsection as "the account," is 
established within the department to fund the adjustment under this subsection. After the 
close of the fiscal year ending June 30, 2023 and the close of each fiscal year thereafter, 
the State Controller shall transfer to the account the unencumbered balances remaining in 
the Department of Education, General Purpose Aid for Local Schools program, General 
Fund account that otherwise would be carried forward into the next fiscal year. To qualify 
for an adjustment under this subsection, a school administrative unit shall submit a plan to 
the commissioner for how the funds will be used to increase academic and social success 
of economically disadvantaged students. The amount of the adjustment must be based on 
a per-pupil rate calculated using the number of economically disadvantaged students at the 
school administrative unit and limited by the amount of funds in the account.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill provides for an additional allocation of school funding for a school 
administrative unit in which at least 15% of the school administrative unit has tax-exempt 
property that cannot be levied to support public education in the school administrative unit 
or for a school administrative unit in which at least 50% of students are eligible for free or 
reduced-price meals. The adjustment is funded through any unencumbered balances that 
otherwise would be carried forward into the next fiscal year in the Department of 
Education, General Purpose Aid for Local Schools program, General Fund account. To 
qualify for an adjustment, the school administrative unit is required to submit a plan for 
how the funds will be used to increase academic and social success of economically 
disadvantaged students. The amount of the adjustment must be based on a per-pupil rate 
calculated using the number of economically disadvantaged students and limited by the 
amount of funds available.