122nd MAINE LEGISLATURE
LD 1381 LR 1263(01)
An Act To Update Teachers' Minimum Salaries
Fiscal Note for Original Bill
Sponsor: Sen. Mitchell of Kennebec
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 $0 $37,119,312 $41,870,637 $47,210,329
Appropriations/Allocations
General Fund  $0 $37,119,312 $41,870,637 $47,210,329
State Mandate
New or Expanded Activity Unit Affected Costs
Requiring school administrative units and state-operated schools to establish a minimum starting salary of $30,000 for certified teachers beginning in fiscal year 2006-07 is a mandate.  The actual cost to individual school units can not be determined at this time.  However, a study conducted previously by the Center for Education Policy estimates the cost to bring eligible teachers and other positions that are on the teacher salary scale up to an annual salary of $30,000 would be approximately $8,000,000 per year. School Significant
Fiscal Detail and Notes
This legislation also requires that the salary matrix utilized in the Essential Programs and Services funding model beginning in fiscal year 2005-06 be calculated from a base salary of not less that $30,000.  The current base salary established within the EPS model is $27,503.  According to the Department of Education, the increase to each of the matrix catatories will increase the total State and Local EPS allocation by an estimated $62.0 million in fiscal year 2006-07.  The General Purpose Aid for Local Schools program within the Department of Education will require additional General Fund appropriations for the State share,  estimated to be $33.4 million in FY07.  The Local share is projected to be $28.6 million in fiscal year 2006-07.
The Teacher Retirement program within the Department of Education will require an additional General Fund appropriation of $3,742,916 in fiscal year 2006-07 for the increase in the employer contributions related to the normal cost componenet of the Maine State Retirement System associated with raising the minimum annual salary for teachers to $30,000 beginning in fiscal year 2006-07.