129th MAINE LEGISLATURE
		LD 427		LR 338(02)
	An Act To Require the State To Fund Teacher Retirement
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
			FY 2019-20	FY 2020-21	Projections  FY 2021-22	Projections  FY 2022-23
Net Cost (Savings)
	General Fund		$25,065,606	$23,159,113	$23,159,113	$23,159,113
Appropriations/Allocations
	General Fund		$25,065,606	$23,159,113	$23,159,113	$23,159,113
Fiscal Detail and Notes
	Prior to enactment of Public Law 2013, chapter 368, the State paid 100% of the normal cost component of teacher retirement.  That law included language requiring the State and local education units to share in the cost of funding the normal cost component of teacher retirement beginning in fiscal year 2013-14.  This legislation proposes to return the full cost back to the State.
	As part of implementing the law passed in 2013, approximately 50% of the amount appropriated for the total normal cost component of teacher retirement in fiscal year 2013-14 and fiscal year 2014-15 was transferred from the Teacher Retirement program to the General Purpose Aid for Local Schools (GPA) program and 50% was deappropriated from the Teacher Retirement program and returned to the unappropriated surplus of the General Fund.
	The total cost of the normal cost component of teacher retirement in fiscal years 2019-20 and 2020-21 is $50,087,295 and $51,464,695, respectively.  In order to return the responsibility of fully funding the normal cost component to the State, this bill includes General Fund appropriations of $25,065,606 in fiscal year 2019-20 and $23,159,113 in fiscal year 2020-21 to the Teacher Retirement program within the Department of Education.  This bill also includes additional General Fund appropriations of $25,021,689 in fiscal year 2019-20 and $28,305,582 in fiscal year 2002-21 to the Teacher Retirement program and a corresponding deappropriation from GPA in order to transfer the State's share of the cost already funded in GPA.