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be based on prior-year adjusted rates.__In order to calculate | adjusted rates, a predicted transportation cost for each school | district based on district pupil transportation densities and the | most recent fiscal year transportation expenditures available must | be established.__Predicted costs and actual expenditures per pupil | must be increased 10% to yield an adjusted predicted cost rate and | an adjusted expenditure rate per pupil.__The essential programs and | services transportation operating cost per pupil beginning fiscal | year 2005-06 is an amount equal to a school district's adjusted | cost or adjusted expenditure per pupil rate, whichever is lower. |
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| A.__In no case may the essential programs and services | transportation operating cost per pupil be less than 75% of | the allocation for the previous year for fiscal years 2005- | 06 and 2006-07.__Beginning in fiscal year 2006-07, | individual school district essential programs and services | transportation operating costs must be based on previous | year's adjusted rates, plus an inflation adjustment. |
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| B.__Beginning in fiscal year 2005-06, an appeals process to | determine exceptions to the adjusted rates must be | implemented.__All appeals must include an analysis of cost | efficiency and a cost comparison with school districts | having comparable pupil transportation density indices. |
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| | Sec. 13. 20-A MRSA §15684, sub-§3 is enacted to read: |
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| | 3.__Repeal.__This section is repealed July 1, 2005. |
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| | Sec. 14. 20-A MRSA §15686, as enacted by PL 2003, c. 504, Pt. A, §6, | is amended to read: |
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| §15686. Transition adjustment |
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| | For each of the fiscal years described in section 15671, | subsection 7, the commissioner shall establish a transition | adjustment calculated to minimize the adverse fiscal impact | directly related to that may be experienced by some | municipalities as a result of the phase-in of this Act. The | transition adjustment for a municipality must be directly related | to the phase-in of essential programs and services and the local | cost share expectation method under section 15671-A of | determining the local contribution to the cost of funding | essential programs and services. The amount of this adjustment | must decline with each successive fiscal year, and the | adjustments must end no later than fiscal year 2009-10. |
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| | Sec. 15. 20-A MRSA §§15688 and 15689 are enacted to read: |
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