124th MAINE LEGISLATURE
		LD 115		LR 23(02)
	An Act To Repeal the Laws Governing Consolidation of School Administrative Units
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$37,351,286	$38,202,896	$38,787,400	$39,380,847
Appropriations/Allocations
	General Fund		$37,351,286	$38,202,896	$38,787,400	$39,380,847
Fiscal Detail and Notes
	This legislation will increase the total state and local cost of K-12 public education by approximately $67,911,430 in fiscal year 2009-10 and $69,459,811 in fiscal year 2010-11 in order to restore funding that was reduced to certain cost components within essential programs and services (EPS) to recognize savings that were anticipated to be achieved as a result of the consolidation of school administrative units.  Beginning in the 2008-2009 school year, Public Law 2007, c.240, Part XXXX reduced the system administration cost component of essential programs and services (EPS) by 50% and the operation and maintenance of plant, special education, and transportation cost components of EPS by 5% each.  The fiscal year 2009-10 and 2010-11 estimates are based on the projected savings to state and local governments of $66,397,565 in fiscal year 2008-09 increased by average growth in the State's real personal income of 2.28% for the 2010-2011 biennium and 1.53% for the 2012-2013 biennium.
	This bill includes General Fund appropriations of $37,351,286 in fiscal year 2009-10 and $38,202,896 in fiscal year 2010-11 to the General Purpose Aid for Local Schools program within the Department of Education for the State's share of restoring the funds.  The increased costs to local towns and municipalities associated with funding the local share is estimated to be $30,560,143 in fiscal year 2009-10 and $31,256,915 in fiscal year 2010-11, or approximately 0.3 mills each year.