123rd MAINE LEGISLATURE
		LD 2272		LR 3575(01)
	An Act To Reduce the Percentage of the Cost of Local Schools Paid by the State from 55% to 49%
	Fiscal Note for Original Bill
	Sponsor: Rep. Joy of Crystal
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
Current biennium savings - General Fund
Fiscal Detail and Notes
	Reducing the State's share of funding the total cost of K-12 public education from 55% in fiscal year 2008-09 to 49% will reduce the General Fund appropriation to the General Purpose Aid to Local Schools program within the Department of Education beginning in fiscal year 2008-09.   The estimated General Fund savings to the State in fiscal year 2008-09 is $112.2 million.  This estimate is based on the following assumptions: 1) the total cost of K-12 public education of $1,870.4 million; the State share at 55% of $1,028.7 million and, 3) the State share at 49% of $916.5 million. The actual amount to be deappropriated can not be determined at this time and will depend on actions taken by the Legislature on the Governor's Supplemental Budget Proposal for the 2008-2009 biennium.
	This legislation will increase the cost to local school administrative units by a corresponding amount, or approximately $112.2 million in fiscal year 2008-09.  This will result in an increase in the mill rate expectation from approximately 6.55 mills to approximately 7.77 mills in fiscal year 2008-09.
	This legislation proposes to utilize the savings that result from reducing the state's contribution to funding K-12 public education by providing an additional $2.0 million per year to the Maine Community College System and directing the balance of the savings to the State's foster care program, long-term care services and home-based care services.  The amount that each program will receive can not be determined at this time.