An Act to Establish
Maine Legislature, Session 132, LD 1892
Committee Amendment CA_A_H967 (House)
Amends: 20-A MRSA §15905, 20-A MRSA §15919, 30-A MRSA §6006-F

COMMITTEE AMENDMENT "f\ " to H,P. 1263, L.D, 1892, "An Act to Establish
Procedures for School Construction Projects"
Amend the bill by striking out the title and substituting the following:
'An Act Regarding Funding for School Construction'
Amend the bill by striking out everything after the enacting clause and inserting the
followiag:
'See. 1. 20-A MRSA §15905, sub-§l, ^A, as amended by PL 2023,c. 462, §1, is
further amended to read:
A. The state board may approve projects as long as no project approval will cause debt
service costs, as defined in section 15672, subsection 2-A, paragraph A and pursuant
to mles adopted in accordance with Resolve 2007, chapter 223, section 4, to exceed
the maximum limits specified m Table 1 and Table 2 in subsequent fiscal years.
Table 1
Major Capital Integrated, Consolidated
Secondary and Postsecondary
Project
Fiscal year Maximum Debt Service Limit Maximum Debt Service Limit
1990 $ 48,000,000
1991 $57,000,000
1992 $ 65,000,000
1993 $ 67,000,000
1994 $ 67,000,000
1995 $67,000,000
1996 $ 67,000,000
1997 $ 67,000,000
1998 $ 67,000,000
1999 $ 69,000,000
2000 $ 72,000,000
COMMITTEE AMENDMENT
COMMrTTEE AMENDMENT "/f " to H.P, 1263, L.D. 1892
§; \
& \
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Fiscal year
2024
2025
2026
2027
2028
2029
2030
2031
$ 74,000,000
$ 74,000,000
$ 80,000,000
$ 80,000,000
$ 84,000,000
$ 90,000,000
$ 96,000,000
$100,000,000
$104,000,000
$108,000,000
$126,000,000
$116,000,000
$116,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
$126,000,000
Table 2
Maximum Debt Service Limit
$150,000,000
$150,000,000
$150,000,000
$150,000,000
$188.779.298
$194.442.677
$200.275.957
$206.284.236
2014 $126,000,000 $10,000,000
2015 $126,000,000 $10,000,000
2016 $126,000,000 $10,000,000
2017 $126,000,000 $10,000,000
2018 $126,000,000 $10,000,000
2019 $126,000,000 $10,000,000
2020 $126,000,000 $20,000,000
2021 $126,000,000 $20,000,000
2022 $126,000,000 $20,000,000
2023 $126,000,000 $20,000,000
See. 2. 20-A MRSA §15905, sub-§l, ^C is enacted to read:
C. Beeinnme in fiscal year 2027-28 and in each subsequent fiscal year. debt sendce
costs paid by fhe department above the fiscal year 2027-28 maximum debt service limit
8 established in oaraarauh A may not be included in the total cost of education calculated
Bursuant to chapter 606-B. For the purposes of this naraCTaoh. debt service costs has
the same meanine as in section 15672. subsection 2-A and includes orincipal and
interest costs for approved major capital oroiects, excluding pavmentsmade with funds
from state and local eovemment accounts established under the federal Internal
Revenue Code of 1 986 and regulations for disposition of excess, unneeded proceeds of
bonds issued for a school project and excluding any ririncroal and interest costs
attributable to a school closed for lack of need pursuant to chapter 202.
Sec. 3. 20-A MRSA §15919 is enacted to read:
COMMITTEE AMENDMENT
COMMnTEE AMENDMENT "7+ " to H.P. 1263, L.D. 1892
^ 1 §15919. School Coastrucfion Accelerator Fund
1. Fund established. The School Construction Accelerator Fund. referred to in this
section as "the fund." is established as a nonlausina fund within the department and
operated in conjunction with the state board for the fiyrQQse^fawardmefimduig to school
administrative units for immediate heating, ventilation or air-conditiomne system repair
needs or roof repair needs in schools.
2. Rulemakine. The state board, in consultation with the department, shall adopt mles
forthe awarding of funds to schQol administrative umtsfrom the fund, which must include
award elieibilitv eruidelines. Rules adopted under this subsection are routine technical mles
as defined in Title 5. chapter 375. subchapter 2-A.
3. Funding. Begmninein fiscaLvLear 2027-28 andin each subseauentfiscal vear, the
State Controller shall transfer to the fund 50% of the unoblieated balances from amounts
aporooriated for general ourpose aid for local schools that would otherwise be carried
forward.
Sec. 4. 30-A MRSA §6006-F, sub-§2, ^[A, as enacted by PL 1997, c. 787, §13,is
amended to read;
A. Sums that may be appropriated by the Legislature or transferred to the fund by the
Treasurer of State and funds that may be provided pursuant to subsection 2-A;
Sec.5. 30-A MRSA §6006-F, sub-§2-A is enacted to read:
2-A,._ Fundine. At the end of fiscal year 2026-27 and the close of each fiscal year
thereafter, the State Controller shall transfer to the fund up to $50.000.000 from the
unbudeeted laosed General Fund balances at the close of each fiscal vear and the remainine
balance for a total of $50.000.000 from the unbudeeted surplus of the General Fund.
Sec. 6. Cost-sharing formula; rulemaking. No later than July 1,2027, the State
Board of Education shall, in consultation with the Department of Education, adopt rules
establishing a cost-sharing formula for funding major school construction projects. The
formula must take into account a municipality's ability to pay and a school administrative
unit's consolidation policies and include a timeline for implementation. The rules must
apply only to projects submitted to the state board for approval on or after July 1, 2027,
Rules adopted under this section are major substantive rules as defined in the Maine
Revised Statutes, Title 5, chapter 375, subchapter 2-A.
Sec. 7. Department of Education and Maine Municipal Bond Bank to
adopt rules; School Revolving Renovation Fund. The Department of Education and
the Maine Municipal Bond Bank shall adopt mles to increase to $8,000,000 the limit on
5 the maximum loan amount from the School Revolving Renovation Fund, established in the
Maine Revised Statutes, Title 30-A, section 6006-F, to address each priority in a school
building within a 5-year period. Notwithstanding Title 30-A, section 6006-F, subsection
8, rules adopted pursuant to this section are routine technical rules as defined in Title 5,
chapter 375, subchapter 2-A.
Sec. 8. Department of Education to convene working group; report. The
Department of Education shall convene a working group to make recommendations related
to school construction. The membership of the working group must include the followmg;
1. The Conmiissioner of Education or the commissioner's designee;
COMMITTEE AMENDMENT
^ ^ COMMm-EE AMENDMENT "^ " to H.P. 1263, L.D. 1892
^ 1 2. The Commissioner of Administrative and Financial Services or the commissioner's
designee;
3. One member representing the Maine Health and Higher Educational Facilities
Authority;
4. The chair of the State Board of Education;
5. One superintendent at a public school in the State;
6, One member representing the JVIaine Municipal Association; and
7. One member who served on the Governor's Commission on School Construction,
established by Executive Order 1 F^ 24/25.
The working group shall make recommendations related to any objectives, strategies
and actions identified by the Governor's Commission on School Construction in a report
issued by the commission February 10, 2026. The working group shall additionally make
recommendations related to administrative and financial changes, including any suggested
legislation, necessary to increase school construction in the State. The Department of
Education shall submit a report related to the findings and recommendations of the working
group to the j oint standing committee of the Legislature having jurisdiction over education
matters, to the joint standing committee of the Legislature having jurisdiction over
appropriations and fmancial affairs and to the Governor by January 15, 2027. The joint
standing committee having jurisdiction over education matters may report out a bill related
to the report to the 133rd Legislature in 2027.
Sec. 9. Appropriations and allocations. The followmg appropriations and
allocations are made.
EDUCATION, DEPARTMENT OF
School Construction Accelerator Fund N579
Initiative; Provides a baseline allocation for the purpose of awarding fundmg to school
administrative units for immediate heating, ventilation or air conditioning system repair
needs or roof repair needs in schools.
OTHER SPECIAL REVENUE FUNDS 2025-26 2026-27
All Other $0 $500
OTHER SPECIAL REVENUE FUNDS TOTAL $0 $500
Amend the bill by relettermg or renumbering any nonconsecutive Part letter or section
number to read consecutively,
SUMMARY
This amendment, which is the majority report of the committee, replaces the bill and
changes the title. It makes the following changes to the laws regarding school construction.
1. It provides that the maximum debt service limit for approved school construction
projects is increased to $ 188,779,298 in fiscal year 2028; $ 194,442,677 in fiscal year 2029;
$200,275,957 in fiscal year 2030; and $206,284,236 m fiscal year 2031.
Page4-132LR0903(02)
COMMITTEE AMENDMENT
COMMHTEE AMENDMENT "^ " to H.P. 1263, L.D. 1892
2. It provides that, begiruiing in fiscal year 2027-28, debt sendce costs that exceed the
fiscal year 2027-28 maximum debt service limit may not be included in the total cost of
(^ 3 education calculated under the Maine Revised Statutes, Title 20-A, chapter 606-B.
Q^ 4 3. It directs the State Board of Education, in consultation with the Department of
Education, to adopt rules establishing a cost-sharmg formula for fimdmg major school
construction proj ects.
4. It establishes the School Construction Accelerator Fund within the department for
the purposes of awarding funds to school administrative units for immediate heating,
ventilation or air-conditioning system repair needs or roof repair needs in schools.
5. It directs the State Controller to, at the end of fiscal year 2026-27 and at the close of
each fiscal year thereafter, transfer $50,000,000 &om the lapsed funds or unappropriated
surplus of the General Fund to the School Revolving Renovation Fund.
6, It directs the Maine Municipal Bond Bank and the department to adopt mles to
increase to $8,000,000 the limit on the maximum loan amount from the School Revolving
Renovation Fund to address each priority in a school building within a 5-year period.
7. It directs the department to convene a working group to make recommendations
related to any objectives, strategies and actions identified by the Governor's Commission
on School Construction in a report issued by the commission in 2026 and submit a report
to the joint standing committee of the Legislature having jurisdiction over education
matters, the joint standing committee of the Legislature having jurisdiction over
appropriations and financial affairs and to the Governor by January 15, 2027.
FISCAL NOTE REQmRED
(See attached)
COMMITTEE AMENDMENT
Revised: 03/31/26 t-KI-
LD 1892 LR 903(02)
An Act to Establish Procedures for School Construction Projects
Fiscal Note for Bill as Amended by Committee Amendment 'j
Committee: Education and Cultural Affairs ^
Fiscal Note Required: Yes
Fiscal Note
Future Biennium Impact to Budget Stabilization Fund
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund
Appropriations/Allocations
Other Special Revenue Funds
Revenue
Other Special Revenue Funds
Transfers
General Fund
$0
$0
$0
$0
$0
$500
$0
$500
$0 $17,000,000
$0
$0
$0
$500
?,ooo,. j
$0
Fiscal Detail and Notes
The bill provides an ongoing baseline Other Special Revenue Funds allocation to the Department of Education (department),
beginning in fiscal year 2026-27, for the purpose of awarding funding to school administrative units for immediate repair needs,
The funding will be transferred from half of the unobligated balances in the GPA account that would otherwise carry forward,
beginning in fiscal year 2027-28. While the amount of the transfer in fiscal year 2027-28 cannot be known until the close of that
fiscal year, it is estimated at approximately $17 million based on the average of the amounts that would have been available
between fiscal years 2019-20 and 2024-25, inclusive, This fiscal note assumes that the unobligated balances available for transfer
will be lower in future fiscal years. The annual transfer may necessitate higher GPA account appropriations in future fiscal years in
order to maintain the State's share of funding public education,
The bill also directs the State Controller to transfer up to $50 million, taken first from the unbudgeted lapsed General Fund
balances at the close of each fiscal year and then, should those balances be less than $50 million, the remaining amount, up to $50
million, from the unbudgeted surplus of the General Fund, beginning in fiscal year 2026-27, The funds available for transfer cannot
be determined until the close of the fiscal year. This transfer will affect the funds available for the Budget Stabilization Fund and
other year-end closing transactions,
This bill increases the debt service limit for approved school construction projects in future fiscal years, Increasing the debt service
limit from prior fiscal years will increase the general obligation of the State. The bill also requires that, beginning in fiscal year
2027-28, debt service costs that exceed the fiscal year 2027-28 debt service limit may not be included in the total cost of educat- -
If and when these debt service costs do exceed the fiscal year 2027-28 limit, the requirements of this bill will constrain the tota
of education and consequently reduce the share paid by the State towards debt service costs for school constmction projects,
leaving a greater share to be paid by school administrative units. Any additional costs to the department and other state entities to
implement the other provisions of this bill are expected to be minor and can be absorbed within existing budgeted resources.
LR0903(02) - Fiscal Note - Page 1 of 1