122nd MAINE LEGISLATURE
LD 1381 LR 1263(02)
An Act To Update Teachers' Minimum Salaries
Fiscal Note for Bill as Amended by Committee Amendment "   "
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 $3,110,809 $2,161,520 $2,181,534
Appropriations/Allocations
General Fund  $0 $3,110,809 $2,161,520 $2,181,534
State Mandate
New or Expanded Activity Unit Affected Costs
Requiring school administrative units and state-operated schools to establish a starting salary of $30,000 for certified teachers beginning in fiscal year 2006-07 is a mandate.  The Department of Education has estimated the  cost of the mandate to be approximately $3,573,942 in fiscal year 2006-07.  Although this legislation proposes to fund 100% of the cost of this provision in fiscal year 2006-07, local school administrative units will be required to share in the cost beginning in fiscal year 2007-08.   School Significant
Fiscal Detail and Notes
This bill includes General Fund appropriations totaling $3,110,809 in fiscal year 2006-07 to the Department of Education for the costs associated with increasing the minimum teachers' salary to $30,000 per year.  Of that amount, $2,894,943 is provided to the General Purpose Aid for Local Schools program (GPA) and $215,866 is provided to the Teacher Retirement program to increase the employer contributions of the normal cost component of the Maine State Retirement System associated with the salary increase.
LD 1968, the 2006-2007 Supplemental Budget, eliminated the proposal to establish a minimum salary of $30,000 for certified teachers for the school year starting after June 30, 2006.  Of the $3.6 million that had been available within the fiscal year 2006-07 GPA program to support the increase in teacher salaries, LD 1968 used $2.9 million to fund transition adjustments for certain eligible school administrative units, leaving approximately $0.7 million remaining to fund the salary increase.  With only $0.7 million available within the GPA funding, an additional General Fund appropriation is required for the balance.