121st Maine Legislature

Office of Fiscal and Program Review

LD 1921

An Act to Encourage Voluntary Efficiency in Maine's School Systems and Related Costs Savings

LR 2782(01)

Fiscal Note for Original Bill

Sponsor: Rep. McLaughlin of Cape Elizabeth

Committee: Regionalization and Community Cooperation

Fiscal Note Required: Yes

Fiscal Note

Projections

2003-04

2004-05

2005-06

2006-07

Appropriations/Allocations

Other Special Revenue Funds

$3,627,053

$7,532,280

$15,945,964

Transfers

Other Special Revenue Funds

$3,627,053

$7,532,280

$15,945,964

Fiscal Detail and Notes

This bill establishes the Fund for the Efficient Delivery of Education Services as a dedicated, non-lapsing account to provide financial incentives and technical assistance to regional school districts, regional cooperatives, and efficient school units. The Fund receives funding from an annual transfer from the General Purpose Aid for Local Schools General Fund program within the Department of Education. The amount of the transfer is based on a percentage of the General Fund appropriation for that fiscal year. For fiscal year 2004-05, this legislation requires that one-half of one percent of the funds appropriated to the General Purpose Aid for Local Schools program be transferred to the Fund. Through the 2nd Regular Session of the 121st Legislature, $725,410,576 has been appropriated for the General Purpose Aid for Local Schools program for fiscal year 2004-05. Based on this appropriation, $3,627,053 would be transferred from the GPA program to the Fund for the Efficient Delivery of Education Services in fiscal year 2004-05.

The Governor's current supplemental budget request, LD 1919, proposes to increase funding to the General Purpose Aid for Local Schools program in fiscal year 2004-05 by $9,049,331. If approved by the Legislature, an additional $45,247 would be transferred to the Fund.

Public Law 2003, c. 504 authorizes the transition to the Essential Programs and Services model as the basis for determining the total cost of K-12 public education beginning in fiscal year 2005-06. The Department of Education estimates the General Fund appropriation to the General Purpose Aid for Local Schools program required to fund K-12 education based on the EPS model to be $753,227,985 in fiscal year 2005-06 and $797,298,197 in fiscal year 2006-07. Based on these estimates, and the percentage of GPA appropriations to be transferred to the Fund for the Efficient Delivery of Education Services specified in the bill, approximately $7,532,280 will be transferred to the Fund in fiscal year 2005-06 and $15,945,964 will be transferred to the Fund in fiscal year 2006-07.

Transferring funds from the General Purpose Aid for Local Schools program to the Fund for the Efficient Delivery of Education Services will result in less money being available to local school units who do not participate in the voluntary formation of regional school districts, regional cooperatives and efficient school units. The impact to the affected local school units can not be determined at this time.