LD 1372
pg. 4
Page 3 of 5 An Act To Enact the School Finance Act of 2003 Page 5 of 5
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LR 2021
Item 1

 
3. Fund for the Efficient Delivery of Local and Regional
Services. As soon as possible, but no later than March 1,
2004, the joint standing committee of the Legislature having
jurisdiction over state and local government matters shall
report out legislation designed in accordance with the
intentions of this Act to govern the design, implementation,
management and oversight of the Fund for the Efficient
Delivery of Local and Regional Services established in the
Maine Revised Statutes, Title 30-A, section 5681, subsection
3.

 
4. Tax burden management. As soon as possible, but no
later than March 1, 2004, the joint standing committees of the
Legislature having jurisdiction over taxation matters and
appropriations and financial affairs shall jointly develop
and report out legislation that consists of a comprehensive
plan that integrates the efforts of state, county and local
governments and schools to reduce unnecessary spending,
identifies cost savings in the delivery of governmental
services and otherwise addresses the issue of the overall tax
burden in this State.

 
SUMMARY

 
This initiated bill requires the State to provide at least
55% of the total state and local cost of kindergarten to grade
12 public education, including 100% state support for special
education services mandated by state or federal law.

 
Two percent of the annual state appropriation for education
required by this initiated bill is dedicated to the Fund for
the Efficient Delivery of Educational Services, which is
dedicated to providing incentive-based resources to those
school administrative units or municipalities that would
effect certain system changes that provide significant and
sustainable cost savings in the delivery of educational
services.

 
The Fund for the Efficient Delivery of Local and Regional
Services is established within the Local Government Fund,
which is the fund from which state-municipal revenue sharing
is distributed. This fund is capitalized by setting aside 2%
of the sales and income tax revenue that would otherwise be
distributed according to the revenue-sharing formula. This 2%
is distributed to those municipalities that can demonstrate
cost savings in the delivery of local and regional
governmental services through collaboration with other local
and regional governments and participating state agencies.
This initiated bill directs the Legislature to develop the
necessary implementing legislation to fully implement the Fund
for the Efficient Delivery of Educational Services and the
Fund for the Efficient Delivery of Local and Regional
Services.


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