124th MAINE LEGISLATURE
		LD 352		LR 342(01)
	An Act To Encourage Veterinary Practice in Maine
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Sen. Mitchell of Kennebec
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Undetermined current biennium cost increase - General Fund Legislative Cost/Study
Legislative Cost/Study
	The expenses of Legislators on the on-going Advisory Committee on Veterinary Medicine are projected to be $840 annually beginning in fiscal year 2009-10.  The Legislature's proposed budget includes $20,000 in fiscal year 2009-10 and $20,000 in fiscal year 2010-11 for legislative studies.  Whether the amounts are sufficient to fund all studies will depend on the number of studies authorized by the Legislative Council and the Legislature
Fiscal Detail and Notes
	This bill establishes the Maine School of Veterinary Medicine Loan Program beginning in fiscal year 2010-11 to be administered by the Finance Authority of Maine (FAME) and creates a nonlapsing, interest-earning, revolving fund which is authorized to receive money from gifts, grants, bequests and donations in addition to money appropriated or allocated by the State in order to carry out the purposes of the program. The bill also allows the administrative costs incurred by the Authority to be paid out of interest earned from the revolving fund.  However, this legislation does not identify a source of funding for the program so it is not clear whether there are funds available from these sources to capitalize the fund or to provide ongoing support for the program.
	If the General Fund is identifed as the funding source to capitalize and support the loan program, FAME will require a General Fund appropriation totaling $86,300 in fiscal year 2010-11 to support the first year costs of the program.  The Finance Authority of Maine estimates the cost in fiscal year 2010-11 to fund the repayment of student loans for three qualified applicants, assuming the maximum loan repayment amount of $20,000 per applicant, to be $60,000.  The additional costs to the Authority to establish and administer the program is estimated to be $26,300 in fiscal year 2010-11.  The cost to fully fund the repayment of student loans once the program reaches its full capacity is estimated to be $240,000 per year and the additional ongoing administrative cost to FAME is anticipated to to be $10,000 per year beginning in fiscal year 2011-12.
	Additional costs to the Department of Agriculture, Food and Rural Resources associated with rulemaking and participation on the newly-formed Advisory Committee can be absorbed within existing budgeted resources.