122nd MAINE LEGISLATURE
LD 1061 LR 1149(01)
An Act To Improve the Recruitment of Teachers
Fiscal Note for Original Bill
Sponsor: Sen. Mills of Somerset
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
   
             
Fiscal Note
Current Cost - State Mandate
Projections Projections
2005-06 2006-07 2007-08 2008-09
Net Cost (Savings)
General Fund $292,610 $342,429 $355,909 $370,618
Appropriations/Allocations
General Fund $292,610 $342,429 $355,909 $370,618
State Mandate
New or Expanded Activity Unit Affected Costs
Establishing minimum salaries for teachers at 1.5 times the federal poverty level and for teachers with master's degrees at 1.5 times the federal poverty level plus $2,000 is a mandate. The impact to individual school units can not be determined at this time. School Significant
Fiscal Detail and Notes
The Department of Education will require General Fund appropriations totaling $292,610 in fiscal year 2005-06 and $342,429 in fiscal year 2006-07 for the costs associated with establishing and administering the Teacher Loan Forgiveness Program and the Vacant Teaching Position Fund.
This bill already includes General Fund appropriations of $100,000 in fiscal year 2005-06 and $100,000 in fiscal year 2006-07 for the Teacher Loan Forgiveness Program.  Based on the specifications in the bill, the appropriations will provide for a minimum of 20 to a maximum of 33 loan forgiveness grants annually.  It is not clear whether this funding will be sufficient to provide loan forgiveness for all teachers who may be eligible for the program. 
The bill also includes General Fund appropriations of $50,000 in fiscal year 2005-06 and $50,000 in fiscal year 2006-07 to establish the Vacant Teaching Position Fund as a non-lapsing fund to provide subsidy to school administrative units that cannot fill necessary teaching positions by September 1st of each year.  Based on the specifications in the bill, the appropriations will provide for a maximum of $2,000 in subsidy for approximately 25 school administrative units.  It is not clear whether this funding will be sufficient to provide subsidy for all school administrative units that may be eligible for the program. 
The Department of Education will require additional General Fund appropriations of $142,610 in fiscal year 2005-06 and $192,429 in fiscal year 2006-07 for one Education Specialist III position, one Accountant II position and one Administrative Secretary position to administer the Teacher Loan Forgiveness program.
Given the federal poverty level for a family of 3 in 2005 of $16,090, the minimum salary for a certified teacher would be $24,135 and $26,135 for a certified teacher with a master's degree.  Based on information provided by the Department of Education, had this provision been in place for 2005, the actual cost to school administrative units to bring teacher salaries up to the established minimum level would have been $504,735 for the 161 teachers without a master's degree and $162,927 for the 43 teachers with a master's degree.   Because Title 20-A, §13402, sub-§2 provides that, notwithstanding other provisions within Title 20-A, §13402, a school administrative unit may not be required to increase the salary of any teacher more than $500 in one school year, the actual increase in salaries for teachers associated with the proposal in this legislation may be limited.