123rd MAINE LEGISLATURE
		LD 448		LR 456(01)
	An Act To Improve Equity in School Funding
	Fiscal Note for Original Bill
	Sponsor: Sen. Raye of Washington
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
Current biennium cost increase - General Fund
Fiscal Detail and Notes
	This legislation will result in additional costs to the General Purpose Aid to Local Schools program within the Department of Education beginning in fiscal year 2007-08.  The Department of Education estimates the one-time cost to contract for a statewide education policy research institute to determine the teacher housing costs within labor market areas in the State to be approximately $50,000 in fiscal year 2007-08.
	This bill also requires that the regional adjustment provided to school administrative units whose labor market area teacher salary costs are determined to be less that 1.0 be based on the regional differences in teacher salary costs or the regional differences in teacher housing costs, whichever is greater.  This provision may result in an increase in the total cost of K-12 public education, therefore requiring an additional General Fund appropriation.  This provision may also result in a redistribution of subsidy among school administrative units with some units receiving more State subsidy and some units receiving less State subsidy.  The impact to individual units can not be determined at this time.
	It should also be noted that, since this legislation is not an emergency, it will not become effective until 90 days after adjournment.  Since school budgets will have already been established for the 2007-2008 school year, it is unclear how adjustments in State subsidy would impact individual school units.