123rd MAINE LEGISLATURE
		LD 1041		LR 785(05)
	An Act To Improve the Essential Programs and Services Funding Formula
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
Potential future biennium savings - General Fund
Fiscal Detail and Notes
	This bill provides that, beginning in fiscal year 2009-10, a school administrative unit (SAU) that tuitions students to a private school shall not be required to pay an insured value factor greater than 7% of the school's tuition rate per student unless the legislative body of the sending unit authorizes its school board to pay up to 10%.  This may reduce the total state and local cost of K-12 public education in future biennia.  The amount can not be determined at this time.
	The requirement that SAU's with school construction projects that receive final funding approval after January 1, 2009 contribute one-half of a mill as the local contribution towards the debt service costs will not affect the total cost of funding K-12 public education or the State's share of that cost.  The requirement will affect the amount of funds required to be raised by SAU's, with those SAU's that have received approval for school construction projects after January 1, 2009 being required to raise more funds and those that do not have school construction projects that were approved after January 1, 2009 being required to raise less.  The impact to individual SAU's can not be determined at this time.
	Reducing the percentage of special education costs that may be allocated to a minimum receiver of state subsidy from 100% beginning in fiscal year 2008-09 to 50% also will not affect the total cost of funding K-12 public education beginning in fiscal year 2008-09 or the State's share of that cost.  The provision will affect the amount of funds required to be raised by a local school administrative unit with minimum receivers being required to raise more funds and non-minimum receivers being required to raise less.  The impact to individual local school units can not be determined at this time.
	The Governor's Supplemental Budget Recommendation for fiscal years 2007-08 and 2008-09 proposes to reduce the percentage of special education costs that may be allocated to minimum receivers of state subsidy from 100% in fiscal year 2008-09 to 50%, and then increases the percentage to 84% beginning in fiscal year 2009-10.