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An Act To Increase Funding to Schools
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas,  continuing budgetary conditions limit the ability of state and local governments to fund the full cost of the components of essential programs and services as required under the school funding laws; and
Whereas,  a provision of law will be repealed June 30, 2013 that protects a school administrative unit from a reduction of state subsidy if the unit raises less than the percentage of the total cost of essential programs and services required under the school funding laws as long as the unit raises at least the same percentage of the local share as the State raises of the State's share; and
Whereas,  it is necessary to continue this protection provided to school administrative units by replacing the repealed provision before June 30, 2013; and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 §15690, sub-§1, ¶D, as amended by PL 2011, c. 655, Pt. C, §12, is repealed and the following enacted in its place:
 
D.  In any fiscal year in which the sum of the State's contribution toward the cost of the components of essential programs and services, exclusive of federal funds that are provided and accounted for in the cost of the components of essential programs and services, falls below the State's target of 55% of the cost of the components of essential programs and services, the commissioner shall calculate the percentage of the State's 55% share that is funded by state appropriations and, notwithstanding any other provision of this paragraph, a school administrative unit may not have the amount of its state subsidy limited or reduced under paragraph C if the school administrative unit:
 
(1) In fiscal year 2013-14, raises at least the same percentage of its required local contribution to the total cost of funding public education from kindergarten to grade 12, including state-funded debt service, as the State's contribution toward its 55% share of the cost of the components of essential programs and services;
 
(2) In fiscal year 2014-15, raises the same percentage of its required local contribution to the total cost of funding public education from kindergarten to grade 12, including state-funded debt service, as the State's contribution toward its 55% share of the cost of the components of essential programs and services plus 33% of the difference between that percentage and 100% of its required local contribution; and
 
(3) In fiscal year 2015-16, raises the same percentage of its required local contribution to the total cost of funding public education from kindergarten to grade 12, including state-funded debt service, as the State's contribution toward its 55% share of the cost of the components of essential programs and services plus 66% of the difference between that percentage and 100% of its required local contribution.
 
This paragraph is repealed June 30, 2016.
Emergency clause.  In view of the emergency cited in the preamble, this legislation takes effect when approved.
 
SUMMARY
This bill amends the law that provides for a proportional share reduction in the amount of local share revenues that municipalities must raise under the Essential Programs and Services Funding Act when the State does not fund the 55% state share required by law. The bill phases out the proportional share reduction over a 3-year period from fiscal year 2014-15 to fiscal year 2016-17.