121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1372
		An Act to Enact the School Finance Act of 2003
		LR 2021(01)
		Fiscal Note for Original Bill
		Sponsor: Initiated Bill
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
Referendum Costs		Month/Year	Election Type	Question	Length
		Nov-03	General	Initiated Bill	Standard
	The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November. If the number or size of the referendum questions increases the ballot length, an additional appropriation of $8,000 or more may be required.
Fiscal Detail and Notes
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
	Total Appropriation Needed to Fund 55% of total state and local cost of K-12 public education in this legislation (based on EPS model)		$0	$971,283,788	$1,001,054,775	$1,031,439,645
	GPA Appropriation approved in PL 2003, c. 20		$0	$725,817,941	$0	$0
	Estimated General Fund appropriation needed to fund K-12 education based on EPS model approved in PL 2003, c. 504		$0	$0	$753,227,985	$797,298,197
	Additional appropriation required to fund 55% of total state and local cost of K-12 public education in this legislation		$0	$245,465,847	$247,826,790	$234,141,448
	This is an initiated bill.  Unless enacted without change during the First Regular Session of the 121st Legislature, this bill and any competing bills must be submitted to the voters at the next statewide election.
	If enacted, or approved by the voters, the Department of Education will require an additional General Fund appropriation totaling $245,465,847 in fiscal year 2004-05.  Of this amount, $102,429,381 is associated with providing 100% state support for special education and $143,036,466 is associated with providing 55% of the total non-special education state and local cost of K-12 public education.  The fiscal year 2004-05 appropriation is determined utilizing the Essential Programs and Services model, as approved by the Legislature in Public Law 2003, c. 504, An Act to Implement School Funding Based on Essential Programs and Services, as the basis for determining the total cost for K-12 education.  The cost for special education is assumed to increase 7.8% annually.  It is assumed that the cost to fund 100% of special education is part of, not in addition to, funding 55% of the total state and local cost of K-12 public education.
	This bill establishes the Fund for the Efficient Delivery of Educational Services within the Department of Education and requires 2% of the annual state appropriation for education required by this legislation, or  $19,425,677 in fiscal year 2004-05, be dedicated to providing incentive-based resources to those local school units or municipalities that develop sustainable cost savings in the delivery of educational services.
	This bill also establishes the Fund for the Efficient Delivery of Local and Regional Services within the Local Government Fund, from which state-municipal revenue sharing is distributed.  The fund is capitalized by setting aside 2% of the amounts that would otherwise be distributed according to the revenue sharing formula. It is estimated that approximately $2,275,888 in fiscal year 2003-04 and $2,402,140 in fiscal year 2004-05, will be dedicated to those municipalities that can demonstrate cost savings in the delivery of local and regional governmental services through collaborative approaches.  A one-time General Fund appropriation of $10,000 in fiscal year 2003-04 to the Office of the Treasurer of State is required for the expense of reprogramming the municipal revenue sharing program.
	The impact on state revenues can not be determined at this time and will depend on the specifics of the future legislation that is required