Sec. GG-1. 20-A MRSA §15602, sub-§13 is enacted to read:
13. Hold harmless provision in fiscal year 1999-00. The following hold harmless provision is established for fiscal year 1999-00. The state share of subsidy for fiscal year 1999-00 for operating costs, program costs, excluding the state share of bus purchases, and minimum subsidy may not be less than the greater of:
A. The state share of subsidy for fiscal year 1999-00 for operating costs, program costs, excluding the state share of bus purchases, and minimum subsidy calculated on the basis of an appropriation of $599,920,215 to general purpose aid for local schools as enacted in the Part I budget as of March 15, 1999; or
B. The state share of subsidy for fiscal year 1998-99 for operating costs, program costs, excluding the state share of bus purchases, minimum subsidy and the 1998-99 hardship cushion actually distributed in fiscal year 1998-99 based on an appropriation of $591,532,327 to general purpose aid for local schools.
Sec. GG-2. 20-A MRSA §15603, sub-§26-A, ¶F, as amended by PL 1995, c. 665, Pt. J, §2, is further amended to read:
F. If for any fiscal year, the total amount appropriated for the State's share of the total allocation is less than the amount specified in the certified funding level for that year, then all subsidizable costs except as noted in subparagraphs (1) and (2) are reduced by a percentage of the original cost amounts. The reduction percentage is the smallest percentage that results in a state share of the total allocation that does not exceed the amount appropriated for this purpose, except that the reduction percentage that would ordinarily be used for operating and program costs must be reduced for the purpose of computing state subsidy for transportation operating costs as defined in subsection 29. The Until fiscal year 2000-01, the reduction percentage ordinarily used for transportation operating costs must be reduced by the amount necessary to provide additional state subsidy equal to $4,500,000 for this category of costs. The statewide adjustment factor under section 15654, subsection 1, paragraph B must be adjusted by an amount sufficient to provide this additional funding for program costs. Beginning in fiscal year 1999-00, the reduction percentage must be phased out over 4 years. In fiscal year 1999-00, the reduction percentage for program costs other than transportation operating costs must be 15.88%. It is the intent of the Legislature that the reduction percentage for all program costs and the insured value factor be lowered to 9.97% in fiscal year 2000-01, to 4.98% in fiscal year 2001-02 and to 0% in fiscal year 2002-03. Beginning in fiscal year 2000-01, if the appropriation and any increase in the mill rate determined by the Legislature to be needed under section 15653 are not sufficient to achieve both the targeted reduction percentage and the targeted per pupil guarantee, as defined in section 15653, then the per pupil guarantee must advance toward the targeted per pupil guarantee in the same proportion as the reduction percentage, as defined in this section, is lowered toward the targeted reduction percentage. The following subsidizable costs may not be reduced:
(1) Principal and interest on approved school construction costs; and
(2) Approved lease costs.
Sec. GG-3. 20-A MRSA §15607, as amended by PL 1997, c. 326, §4, is repealed and the following enacted in its place:
§15607. Actions by the Legislature
The Legislature shall annually, prior to March 15th, enact legislation to:
1. Foundation per pupil operating rate. Establish the foundation per pupil operating rate and the elementary and secondary foundation per pupil operating rates;
2. Subsidy indices. Establish an operating cost millage, a program millage limit and a debt service millage limit; and
3. Appropriation for the state share of adjustments, debt service and foundation; single account. Appropriate the necessary funds for the State's share for general purpose aid for local schools for the following components:
A. Adjustments described in section 15602, subsection 13; section 15612; and section 15613, except section 15613, subsection 13, including an appropriation for special education pupils placed directly by the State for:
(1) Tuition and board for pupils placed directly by the State in accordance with rules adopted or amended by the commissioner; and
(2) Special educational tuition and other tuition for residents of state-operated institutions attending programs in school administrative units or private schools in accordance with rules adopted or amended by the commissioner;
B. Debt service subsidies described in section 15611. If the appropriation for debt service differs from the amount determined in accordance with section 15611, subsection 2, then the debt service millage limit specified in section 15611, subsection 1 may be adjusted up or down as necessary; and
C. Foundation subsidies described in section 15610 and section 15613, subsection 13 and in chapter 606-A.
Funds for appropriations under this section must be placed into a single account.
Sec. GG-4. 20-A MRSA §15607-A is enacted to read:
§15607-A. Actions by the department
Within the annual appropriations, the department shall follow the procedures described in this section.
1. State's obligation. If the State's continued obligation for any program provided by one of the appropriated amounts in section 15607, subsection 3 exceeds the appropriated amount, any unexpended balance from another of those appropriated amounts may be applied by the commissioner toward the obligation for that program.
2. Cash flow. For the purpose of cash flow, the commissioner may pay the full state and local share of the payment amounts due on bond issues for school construction, and the required amount to offset the local share of the bond issues may be transferred to the debt service portion of the account from operating and program subsidies. This provision does not apply in those situations in which a school administrative unit has less subsidy than the total principal and interest payment on bonds.
Sec. GG-5. 20-A MRSA §15652, sub-§4, as amended by PL 1997, c. 643, Pt. D, §3, is repealed.
Sec. GG-6. 20-A MRSA §15653, sub-§§1 and 2, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, are amended to read:
1. Per pupil guarantee. The Legislature shall annually establish a per pupil guarantee. For fiscal year 1999-00, the per pupil guarantee is $4,020. In the subsequent 3 fiscal years, it is the intent of the Legislature to achieve the per pupil guarantee targets established in this subsection.
A. For fiscal year 2000-01 the per pupil guarantee target is $4,307.
B. For fiscal year 2001-02 the per pupil guarantee target is $4,687.
C. For fiscal year 2002-03 the per pupil guarantee target is $5,204.
The intent of the Legislature is to achieve a per pupil guarantee that matches projected spending in fiscal year 2002-03. Beginning in fiscal year 2000-01, if the appropriation and any increase in the mill rate determined by the Legislature to be needed under this section are not sufficient to achieve both the targeted reduction percentage in section 15603, subsection 26-A, paragraph F and the targeted per pupil guarantee, then the per pupil guarantee must advance toward the targeted per pupil guarantee in the same proportion as the reduction percentage is lowered toward the targeted reduction percentage.
2. Contribution to per pupil guarantee. The Legislature and each school administrative unit are jointly responsible for contributing to the per pupil guarantee. For each school administrative unit, the per pupil guarantee is the sum of the school administrative unit local contribution to the per pupil guarantee and the school administrative unit state contribution to the per pupil guarantee. It is the intent of the Legislature to achieve the targeted per pupil guarantee through a combination of the Legislature's additional contribution and, if needed, an increase in the mill rate used to determine the statewide local share.
Sec. GG-7. 20-A MRSA §15653, sub-§4, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is repealed and the following enacted in its place:
4. Statewide local share. For fiscal year 1999-00, the statewide local share amount of the operating costs allocation is based on the sum of the amounts determined by multiplying for each unit 6.67 mills times the unit's property fiscal capacity. In subsequent years the mill rate is 6.67 mills, except that the Legislature shall determine if an increase is needed to achieve the targeted per pupil guarantee under this section.
Sec. GG-8. 20-A MRSA §15656, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is repealed and the following enacted in its place:
1. Pupil count used for operating costs. The pupil count used for operating costs in this chapter is the greater of the average of the 2 census counts for the most recent calendar year and the average of the 4 census counts for the 2 most recent calendar years.
A. The 2 census counts in each calendar year must be for April 1st and October 1st.
B. As an exception, only the 2 census counts in the most recent calendar year may be used for:
(1) Kindergarten to grade 8 students for units that send all their kindergarten to grade 8 students as tuition students to schools elsewhere in the State;
(2) Grade 9 to grade 12 students for units that send all their grade 9 to grade 12 students as tuition students to schools elsewhere in the State; and
(3) Kindergarten to grade 12 students for units that send all their kindergarten to grade 12 students as tuition students to schools elsewhere in the State.
Sec. GG-9. 20-A MRSA §15657, sub-§2, as amended by PL 1997, c. 643, Pt. D, §5, is further amended to read:
2. Local median household income. The most recent local median household income is divided by the statewide average median household income. That amount is divided by the normalized regional cost adjustment as defined in section 15652, subsection 4. The final result is multiplied by an income weight of 0.15. The department shall use local median household income data, updated annually from the Federal Decennial Census as estimated at the fiscal year 1997-98 level until final Federal Decennial Census figures are established for the year 2000. The fiscal year 1997-98 estimated census figures must be adjusted so that no municipality's census figure exceeds twice the state average percentage increase from fiscal year 1996-97 to fiscal year 1997-98.
Sec. GG-10. PL 1999, c. 16, Pt. C is repealed.
Sec. GG-11. Essential programs and services; data collection for school funding. The State Board of Education's Essential Programs and Services Committee has recommended that a new approach to school funding should establish and measure the resources utilized in prototypical high-performing elementary, middle and secondary schools in Maine. This approach to identifying needed programs and services and their costs may be referred to as the "essential programs and services model" and consists of the resources needed to fund all necessary programs and services, including instructional and support staffing needs and other material needs. The determination of these resource levels must reflect, where available, data that is representative of Maine schools. The essential programs and services model must be used to determine the amount of financial resources that must be available to each school unit and serves as the foundation for calculating both state and local contributions to public education for kindergarten through grade 12. Beginning July 1, 1999, the State Board of Education shall work with the Department of Education to determine the data that will be needed to calculate annual funding of school units in accordance with the cost-based essential programs and services model developed by the state board and described in its January, 1999 report to the 119th Legislature. The department shall implement changes in its current computer systems for data collection and data use that comply with these determinations. The state board shall provide interim reports on its work to the joint standing committee of the Legislature having jurisdiction over education and cultural affairs by January 14, 2000 and by January 15, 2001. A final report must be provided by July 2, 2001. Necessary data collection changes must be completed so that appropriate funding data can be reported to the department after July 1, 2003.
Sec. GG-12. Essential programs and services; data collection for school-level reporting. Beginning July 1, 1999, the State Board of Education shall work with the Department of Education to determine school-level data that is required to monitor the implementation in each school of the essential programs and services model. The department shall modify its current data collection and data use systems to collect and report this school-level data. The state board shall provide interim reports on its work to the joint standing committee of the Legislature having jurisdiction over education and cultural affairs by January 14, 2000 and by January 15, 2001. A final report must be provided by July 2, 2001. Necessary data collection changes must be completed so that appropriate school-level data can be reported to the department after July 1, 2003.
Sec. GG-13. Research. The State Board of Education shall research local school policies and expenditures on school transportation, special education, vocational education, efficiency of school operations and school performance. The research must include pupil characteristics and school unit characteristics and how these factors relate to school unit policies and levels of expenditure. The state board, in conjunction with the Education Research Institute, shall study practices in other states regarding the amounts and types of state and local revenues used to fund public education, the use of a regional "cost of education" adjustment and how the various states calculate and use an income measure in the school funding formula. The state board shall develop recommendations on how its findings may be used to improve Maine's system of school funding. The state board shall provide to the joint standing committee of the Legislature having jurisdiction over education and cultural affairs:
1. Transportation. A final report by July 3, 2000 on transportation, including bus purchases and transportation operating costs;
2. Special education. An interim report by July 3, 2000 and a final report by July 2, 2001 on the extent of consistency in the identification of special education needs statewide and the efficient delivery of special education services;
3. Best practices. An interim report by July 3, 2000 and a final report by July 2, 2001 on best practices relating to efficiency of school operations and high-level school performance;
4. Vocational education. A final report by July 3, 2000 on vocational education, including a preliminary analysis of program delivery, program costs and access to vocational education opportunities across the State and a plan for more in-depth research;
5. Revenue to fund public education. A final report by July 3, 2000 on practices in other states regarding the types and amounts of revenue used by local education organizations and by state governments to fund public education;
6. Use of regional "cost of education." A final report by January 3, 2000 on practices in other states regarding the use of a regional "cost of education" adjustment; and
7. School funding formula. A final report by January 3, 2000 on practices in other states regarding how to calculate and use an income measure in the school funding formula.
Sec. GG-14. Basic elementary and secondary per pupil operating rates. The basic elementary per pupil operating rate for the fiscal year 1999-00 is $3,201 and the basic secondary per pupil operating rate for fiscal year 1999-00 is $3,845. The foundation per pupil operating rate for the 1999-00 fiscal year is $3,393.
Sec. GG-15. Per pupil guarantee and statewide factor. The per pupil guarantee for fiscal year 1999-00 is $4,020. The statewide factor for fiscal year 1999-00 is 0.56410.
Sec. GG-16. Foundation allocation. The foundation allocation of state and local funds for fiscal year 1999-00 for the purposes listed in this section is as follows.
1999-00
TOTAL
Operating
Per pupil guarantee pursuant to the
Maine Revised Statutes, Title 20-A,
section 15653 $865,501,980
A. Program Costs
Early Childhood 515,490
Special Education (Local) 140,726,794
Special Education (Tuition and
Board) 13,077,864
Vocational Education 26,031,013
Transportation Operating 61,477,789
Bus Purchases 5,000,000
_____________
B. Program Cost Total 246,828,950
Less percentage reduction pursuant
to the Maine Revised Statutes, Title
20-A, section 15603, subsection
26-A, paragraph F (38,274,270)
_____________
Adjusted Program Cost Total 208,554,680
Foundation Total - Combined Adjusted Operating and ____________
Program Cost $1,074,056,660
Sec. GG-17. Foundation subsidy indexes. This section establishes mill rates as follows: operating cost millage, 5.11 mills; program millage limit, 1.21 mills.
Sec. GG-18. Foundation reduction percentages. This section establishes reduction percentages as follows: program cost reduction percentage - 15.88%; transportation operating reduction percentage - 14.38%.
Sec. GG-19. Foundation appropriation. The foundation appropriation provided for General Purpose Aid for Local Schools for the fiscal year beginning July 1, 1999 and ending June 30, 2000 is calculated as follows.
1999-00 1999-00
TOTAL STATE
Foundation Total - Combined Adjusted Operating and Program Cost $1,074,056,660 $527,396,309
Less $4,500,000 shifted from
operating to program costs for
transportation operating (4,500,000)
Plus $4,500,000 shifted from
operating to program costs for
transportation operating to lower
the reduction percentage 4,500,000
Plus $6,050,433 targeted to program
costs to lower the reduction
percentage 6,050,433
Minimum state subsidy 997,000
ADJUSTED FOUNDATION ALLOCATION
TOTAL $534,443,742
Sec. GG-20. Debt service appropriation. The debt service appropriation of state funds for fiscal year 1999-00 for the purposes listed in this section is as follows.
1999-00
TOTAL
Debt Service Costs
Principal and Interest $68,103,054
Approved Leases 6,200,435
Insured Value Factor 2,308,676
____________
C. Debt Service Cost Total 76,612,165
Less Percentage Reduction of Insured
Value Factor pursuant to the Maine
Revised Statutes, Title 20-A, section
15603, subsection 26-A, paragraph F (518,067)
_____________
Adjusted Debt Service Cost Total $76,094,098
Sec. GG-21. Debt service subsidy indexes. This section establishes mill rates as follows: operating cost millage, 5.11 mills; debt service millage limit, 0.50 mills.
Sec. GG-22. Debt service reduction percentages. This section establishes reduction percentages as follows: insured value factor reduction percentage - 22.44%.
Sec. GG-23. Debt service appropriation. The debt service appropriation provided for General Purpose Aid for Local Schools for the fiscal year beginning July 1, 1999 and ending June 30, 2000 is calculated as follows.
1999-00 1999-00
TOTAL STATE
ADJUSTED DEBT SERVICE ALLOCATION
TOTAL $76,094,098 $56,150,600
Sec. GG-24. Adjustments and miscellaneous costs appropriation. The adjustments and miscellaneous costs appropriation of state funds for the fiscal year 1999-00 for the purposes listed in this section is as follows.
1999-00
TOTAL
Adjustments and Miscellaneous Costs
Cost of Geographic Isolation
Adjustments $250,000
Cost of Quality Incentive Adjustments 0
Audit Adjustments 0
Cost of Reimbursement for Private
School Services 201,000
Special Education Tuition and Board
for State Wards and Other Pupils
Placed Directly by the State 8,200,000
State Agency Clients 18,100,000
Out-of-district Placement 1,929,000
Long-term Drug Treatment Center 60,976
Contract for Cost-of-education and
Income Data 29,000
Fiscal year 2000 Hold Harmless
Provision to Previous Enacted
Budget 1,230,000
Essential Programs and Services -
Data Collection and Research 100,000
_____________
Total Adjustments $30,099,976
Sec. GG-25. Adjustments and miscellaneous costs appropriation. The adjustments and miscellaneous costs appropriation provided for General Purpose Aid for Local Schools for the fiscal year beginning July 1, 1999 and ending June 30, 2000 is calculated as follows.
1999-00 1999-00
TOTAL STATE
ADJUSTMENTS AND MISCELLANEOUS COSTS
TOTAL $30,099,976 $30,099,976
FOUNDATION, DEBT SERVICE AND ADJUSTMENTS AND MISCELLANEOUS COSTS
TOTAL $1,180,250,734 $620,694,318
Sec. GG-26. Limit of State's obligation. If the State's continued obligation for any individual program contained in sections 14, 15, 16, 19, 20, 23, 24 and 25 of this Part exceeds the level of funding provided for that program, any unexpended balances occurring in other programs may be applied to avoid proration of payments for any individual program. Any unexpended balances from sections 14, 15, 16, 19, 20, 23, 24 and 25 of this Part may not lapse but must be carried forward for the same purpose.
Sec. GG-27. Appropriations. Sections 14 to 26 of this Part may not be construed to require the State to provide payments that exceed the appropriation of funds for General Purpose Aid for Local Schools for the fiscal year beginning July 1, 1999 and ending June 30, 2000.
Sec. GG-28. State subsidy for fiscal year 1999-00. Notwithstanding any other provision of law, the Commissioner of Education shall distribute these funds in such a manner that the school administrative units receive by the end of fiscal year 1999-00 the state allocation determined by the funding formula enacted by the First Regular Session of the 119th Legislature and equal to the total funds appropriated in Public Law 1999, chapter 16 and in this Part.
Sec. GG-29. Local share for fiscal year 1999-00. Notwithstanding any other provisions of law, any additional local funds raised pursuant to the Maine Revised Statutes, Title 20-A, section 15614, subsection 3 may be credited toward the local share of the foundation allocation or the local share of the debt service allocation in order to satisfy the requirements of Title 20-A, chapters 606 and 606-A.
Sec. GG-30. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Part.
1999-00 2000-01
STATE BOARD OF EDUCATION
State Board of Education
All Other $100,000 $50,000
Provides funds for administrative costs, computer programming and research services required to determine data collection needs and conduct research.
STATE BOARD OF EDUCATION ____________ ____________
TOTAL $100,000 $50,000
EDUCATION, DEPARTMENT OF
General Purpose Aid for Local Schools
All Other $20,774,103 $20,000,000
Provides funds to increase the state share of school subsidy. Total funds appropriated for school subsidy for fiscal year 1999-00 by Public Law 1999, chapter 16, Part A and Part B and in this Part are distributed as follows: The state share of the adjusted foundation allocation total is $534,443,742; the state share of the adjusted debt service allocation total is $56,150,600; and the state share of adjustments and miscellaneous costs is $30,099,976.
General Purpose Aid for Local Schools
All Other (100,000) (50,000)
Deappropriates funds from the adjustments and miscellaneous costs category for Essential Programs and Services-Data Collection and Research in order to offset appropriations provided to the State Board of Education for those purposes.
Hardship Cushion for General Purpose Aid for Local Schools
All Other 3,783,692
Provides funds to be distributed to school administrative units as a one-time hardship cushion to ensure that each unit's state share of subsidy for fiscal year 1999-00 for operating costs, program costs excluding the state share of bus purchases, and minimum subsidy is not less than each unit's state share of subsidy for fiscal year 1998-99 for those same categories plus the 1998-99 hardship cushion actually distributed in fiscal year 1998-99 based on an appropriation of $591,532,327 to the General Purpose Aid for Local Schools program.
DEPARTMENT OF EDUCATION ____________ ____________
TOTAL $24,457,795 $19,950,000
TOTAL APPROPRIATION ____________ ____________
SECTION TOTAL $24,557,795 $20,000,000
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