123rd MAINE LEGISLATURE
		LD 1932		LR 3324(38)
	An Act To Amend the Laws Regarding School Funding
	Fiscal Note for House Amendment "     " to Committee Amendment "A"
	Sponsor: Rep. MacDonald of Boothbay
	Fiscal Note Required: Yes
Fiscal Note
Potential future biennium cost increase - General Fund
Fiscal Detail and Notes
	Providing school administrative units with the option of forming a regional school union that allows for the dispersion of decision making authority to local education units within the regional school union except for certain core functions may increase the total cost of K-12 public education in future biennia due to less savings being achieved versus what was anticipated in Public Law 2007, chapter 240, Part XXXX.  The amount can not be determined at this time and will depend on the number of regional school unions established and the ability of regional school unions and local education units within the regional school union to implement efficiencies.  Two areas which could impact future General Fund costs include special education and transportation.
	Title 20-A, §15681-A, sub-§2(D) requires that school administrative units receive sufficient funds for special education to ensure that the SAU's meet the federal maintenance of effort requirement for receiving federal Individuals with Disabilities Act funds.  The maintenance of effort requirement states that the total amount of state and local funds budgeted by the local education agency for expenditures in a current fiscal year for the education of children with disabilities must be at least equal to the total amount of state and local school funds actually expended for the education of children with disabilities in the most recent preceding fiscal year.  Less savings being achieved versus what was anticipated in Public Law 2007, chapter 240, Part XXXX may require a higher level of state and local funding in order to fulfill the maintenance of effort requirement.
	Title 20-A, §15681-A, sub-§3 requires that school administrative units receive no less than 90% of the most recent year's reported net transportation expenditures.  Less savings being achieved versus what was anticipated in Public Law 2007, chapter 240, Part XXXX may require a higher level of funding in order to meet the statutory requirement.