125th MAINE LEGISLATURE
		LD 268		LR 305(01)
	An Act To Make the Consolidation of School Administrative Units Voluntary and To Eliminate the Penalties for Units That Choose Not To Consolidate
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. MacDonald of Boothbay
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			FY 2011-12	FY 2012-13	Projections  FY 2013-14	Projections  FY 2014-15
Net Cost (Savings)
	General Fund		$4,300,000	$0	$0	$0
Appropriations/Allocations
	General Fund		$4,300,000	$0	$0	$0
Fiscal Detail and Notes
	The General Purpose Aid for Locals Schools program within the Department of Education will require a one-time General Fund appropriation of $4,300,000 in fiscal year 2011-12 for the cost associated with reimbursing those local school administrative units that had their fiscal year 2011-12 state subsidy reduced  for failing to comply with the laws governing school administrative unit reorganization.  Because this legislation is not an emergency it will not take effect until 90 days after the adjournment of the 1st Regular Session of the 125th Legislature, or approximately October 2011.  This fiscal note assumes that, since both the State's budget for fiscal year 2011-12 and the budgets of local school administrative units (SAU's) for the 2011-2012 school year will be set well before the effective date of this legislation, a General Fund appropriation will be provided so those school administrative units who did comply with the school reorganization laws will not be negatively impacted.
	If the legislation in its final form does not include a General Fund appropriation of $4.3 million the Department of Education will be required to recalculate the amount of subsidy to be distributed to local school administrative units in the 2011-2012 school year.  This redistribution will result in conforming SAU's receiving less subsidy from the State than originally budgeted and non-conforming SAU's receiving more.  However, there would be no net impact to the General Fund.