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121st Maine Legislature |
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Office of Fiscal and Program Review |
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LD 1372 |
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An Act
to Enact the School Finance Act of 2003 |
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LR 2021(02) |
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Fiscal Note for Bill as Amended by Committee
Amendment " " |
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Committee: Taxation |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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Projections |
Projections |
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2003-04 |
2004-05 |
2005-06 |
2006-07 |
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| Net Cost
(Savings) |
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General Fund |
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($22,924,981) |
$22,625,916
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($6,047,435) |
($19,296,314) |
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| Appropriations/Allocations |
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General Fund |
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$0 |
$252,017,468
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$205,022,280 |
$197,880,468 |
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Other Special Revenue Funds |
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$0 |
$956,561 |
$269,389 |
$282,859 |
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| Revenue |
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General Fund |
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$22,924,981
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$229,391,552 |
$211,069,715 |
$217,176,781 |
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Other Special Revenue Funds |
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$1,169,174
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$8,653,035
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$8,885,927
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$9,262,558
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| Fiscal Detail
and Notes |
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| Referendum
Costs |
Month/Year |
Election Type |
Question |
Length |
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Nov-03 |
General |
Initiated Bill |
Standard |
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The Secretary of
State's budget includes sufficient funds to accommodate one ballot of average
length for the general election in November 2003. If the number or size of
the referendum questions increases the ballot length, an additional
appropriation of $8,000 or more may be required. |
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The
implementation of this amended bill is contingent upon voter approval as a
competing measure to the original initiated bill. If approved by the voters, this bill would result in net
General Fund savings in the 2004-2005 biennium of $299,065. |
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| General Fund
Summary - Costs (Savings) |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
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Increase Sales Tax to $.06 (eff. 5/1/04) |
(22,924,981) |
(129,130,000) |
(135,099,000) |
(141,601,000) |
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Sales Tax on Amusements (eff. 7/1/04) |
0 |
(28,256,546) |
(29,021,367) |
(29,868,814) |
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Sales Tax on Lodging to 10% (eff. 7/1/04) |
0 |
(14,543,805) |
(15,286,784) |
(16,090,120) |
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Sales Tax on Auto Rental to 20% (7/1/04) |
0 |
(4,002,882) |
(4,240,404) |
(4,489,728) |
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Individual Income Tax - Homestead Repeal |
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191,318 |
954,636
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957,290
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Earned Income Tax Credit |
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- Non-refundable
portion |
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0 |
772,296
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3,864,806
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3,921,118
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- Refundable
portion |
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0 |
5,397,153 |
27,347,714 |
29,352,166 |
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Sales Tax on Cigarette Tax |
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(94,885) |
(95,116) |
(95,492) |
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Cigarette Tax to $1.50 (Eff. 7/1/04) |
0 |
(39,412,000) |
(39,182,000) |
(38,950,000) |
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Liquor Excise and Premium Tax |
0 |
(20,312,201) |
(20,312,201) |
(20,312,201) |
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Repeal Homestead Exemption |
0 |
(34,931,664) |
(35,384,300) |
(36,105,037) |
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Expand Circuit Breaker Program |
0 |
51,520,000 |
55,900,000 |
60,350,000 |
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Business Equipment Tax Reimbursement |
0 |
0 |
(8,763,692) |
(21,064,966) |
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Municipal Property Tax Exemption Reimb. |
0 |
0 |
5,842,000 |
12,095,000 |
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Maine Revenue Services Admin. Costs |
0 |
1,486,030
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442,542 |
464,670
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Net
Approp\Deapprop to fund EPS @ 55% |
0 |
233,943,102 |
186,985,730 |
182,140,801 |
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(See
below for additional detail of EPS or Essential
Program and Services) |
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Net General Fund Cost (Savings) |
(22,924,981) |
22,625,916 |
(6,047,435) |
(19,296,314) |
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Net Biennium General Fund Cost (Savings) |
($299,065) |
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Increase (Decrease) of Transfers to Other
Special Revenue Funds: |
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Local
Government Fund |
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$1,169,174 |
$8,653,035 |
$7,881,927 |
$8,211,558 |
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Tourism Marketing Promotion Fund |
$0 |
$0 |
$1,004,000 |
$1,051,000 |
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Projections |
Projections |
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2003-04 |
2004-05 |
2005-06 |
2006-07 |
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Total
Appropriation Needed to Fund 55% of total state and local cost of K-12 public
education based on Essential Programs and Services model |
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$959,761,043 |
$957,231,042 |
$975,240,940 |
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Estimated General
Fund appropriation needed to fund K-12 education based on current funding
model (assumes 6% growth per year) |
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$725,817,941 |
$770,245,312 |
$793,100,139 |
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Additional
appropriation required to fund 55% of total state and local cost of K-12
public education based on Essential Programs and Services model |
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$233,943,102
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$186,985,730
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$182,140,801
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This
bill provides for a new method of determining the state and local share of
funding the cost of K-12 public education beginning in fiscal year
2004-05. This bill utilizes the
Essential Programs and Services model, as proposed in LD 1623, An Act to
Implement School Funding Based on Essential Programs and Services, as the
basis for determining the total cost of K-12 public education. However, this bill differs from LD 1623 in
two ways: first, it requires funding for 100% of the total state and local
operating cost allocation based on the EPS model rather than applying the
transition percentages provided in LD 1623.
Second, it requires the state to contribute 55% of the total state and
local cost of K-12 public education beginning in fiscal year 2004-05 rather
than increasing its contribution to 50% by fiscal year 2009-10. |
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