Sec. 11. 20-A MRSA §15657, as amended by PL 1997, c. 643, Pt. D, §5, is repealed and the following enacted in its place:

§15657. Relative property fiscal capacity

For each school administrative unit, the commissioner shall annually determine the unit's relative property fiscal capacity by dividing the local per pupil property fiscal capacity by the statewide per pupil property fiscal capacity.

Sec. 12. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.

1999-00 2000-01

EDUCATION, DEPARTMENT OF

General Purpose Aid for

Local Schools

All Other $57,066,914 $57,066,914

Provides funds to fully fund 55% of the cost of the total allocation in fiscal year 1999- 00 and fiscal year 2000-01.

SUMMARY

Current law requires that the Legislature provide at least 55% of the total allocation for costs incurred by school administrative units, defined as the total of the foundation allocation and the debt service allocation, from General Fund revenues. Current law also requires that school administrative units receive state subsidy for the state share of the foundation allocation, defined as the adjusted total of actual local operating costs and actual local program costs. However, the funds for these subsidizable costs are limited to the amount appropriated by the Legislature for the general purpose aid for local schools program. Appropriations for the past several years have addressed less than 25% of the amount needed to fully fund this program.