HP0518, LD 738, item 1, An Act To Make the School Budgeting Process a Biennial Process

An Act To Make the School Budgeting Process a Biennial Process

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 20-A MRSA §1306, sub-§3, as enacted by PL 1981, c. 693, §§5 and 8, is amended to read:

3. Effective date. A change in budget format shall must be voted on at least 90 days prior to the budget year for in which that change is to be becomes effective.

Sec. 2. 20-A MRSA §1310, sub-§1, as amended by PL 1983, c. 485, §14, is further amended to read:

1. Warrant. In accordance with the budget approved by the voters at an annual a budget meeting and in substantially the same form as the warrant of the Treasurer of State for taxes, the board of directors shall issue its warrants to the assessors of each member municipality requiring them to assess upon the taxable estates within the municipality an amount which that is that municipality's share of the district's costs.

Sec. 3. 20-A MRSA §1482-B, as enacted by PL 2007, c. 668, §18, is amended to read:

§ 1482-B. Budget meeting procedures

The following procedures must be used at a regional school unit annual budget meeting. Prior to the 2019-20 fiscal year, the budget meeting must be an annual meeting for an annual budget. Beginning with the budget biennium that includes fiscal years 2019-20 and 2020-21 and each biennium thereafter, the budget meeting is a biennial budget meeting to establish a biennial budget.

1. Election of moderator. The secretary of the regional school unit board or the chair of the regional school unit board when the secretary is absent shall open the annual budget meeting and call for the election of a moderator, receive and count votes for the moderator and swear in the moderator.

2. Appointing ballot clerks. The moderator shall appoint from the certified voting list the ballot clerks necessary for the efficient operation of the annual budget meeting. The moderator shall swear in the clerks.

3. Budget consideration. The superintendent of the regional school unit shall thoroughly explain the budget. The voters must have an opportunity to be heard. The voters may change only items dealing with:

A. The expenses necessary to operate the regional school unit;

B. Appropriations for the reserve fund; and

C. Appropriations for the contingency fund and school construction purposes.

4. Approval. A majority vote of those voters present and voting is necessary for the approval of the annual budget.

5. Voting lists. Registration of voters for the annual budget meeting must be held in each member municipality in accordance with Title 21-A, section 122.

A. Prior to the annual budget meeting, the municipal clerks of the member municipalities shall supply to the regional school unit board certified corrected copies of the registered voters of their municipalities.

B. The certified corrected copies under paragraph A must be used in determining the voters who are eligible to vote at the annual budget meeting.

6. Written ballot. An article must be voted on by written ballot if at least 10% of those present and voting vote to use a written ballot. The department, in consultation with municipal and school officials and with organizations representing those officials, shall develop and distribute guidelines to assist regional school unit annual budget meeting moderators in explaining and implementing this subsection.

Sec. 4. 20-A MRSA §1483, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

§ 1483. Regional school unit budget; budget formats

1. Content. Beginning with the budget for the 2008-2009 school year, a A regional school unit shall include in its budget document:

A. The regional school unit's total cost of funding public education from kindergarten to grade 12, its non-state-funded debt service, if any, and any additional expenditures authorized by law;

B. A Prior to the 2019-20 fiscal year, a summary of anticipated revenues and estimated school expenditures for the fiscal year . Beginning with the budget biennium that includes fiscal years 2019-20 and 2020-21 and each biennium thereafter, a summary of anticipated revenues and estimated school expenditures for the 2 fiscal years of the biennium; and

C. The following statement, including the estimated dollar amount of state retirement payments: "This budget does not include the estimated amount of $....... in employer share of teacher retirement costs that is paid directly by the State."

Sec. 5. 20-A MRSA §1485, first ¶, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

After January 31, 2008, the The format of the annual budget of a regional school unit must be in accordance with this section.

Sec. 6. 20-A MRSA §1485, sub-§1, ¶¶D and E, as enacted by PL 2007, c. 240, Pt. XXXX, §13, are amended to read:

D. Other optional local data showing the amount and percentage of changes proposed in the state allocation, the local share and the total regional school unit budget and related information determined appropriate by the regional school unit board of directors; and

E. Data similar to that provided in paragraph A for a high-performing regional school unit of a size and demographic profile determined by the department that is comparable to the regional school unit ; and .

Sec. 7. 20-A MRSA §1485, sub-§1, ¶F, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is repealed.

Sec. 8. 20-A MRSA §1485, sub-§4, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

4. Transfer between budget cost center lines. During the fiscal year or years for which the budget is approved using the cost center summary budget format, the regional school unit board may transfer an amount not exceeding 5% of the total appropriation for any cost center to another cost center or among other cost centers without voter approval.

Sec. 9. 20-A MRSA §1486, first ¶, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

After January 31, 2008, the The procedure for approval of the annual budget of a regional school unit must be in accordance with this section and section 1485.

Sec. 10. 20-A MRSA §1486, sub-§1, as amended by PL 2011, c. 171, §3, is further amended to read:

1. Budget validation. Following development of the annual regional school unit budget and approval at a regional school unit budget meeting as provided in section 1485, a referendum must be held in the regional school unit as provided in this section to allow the voters to validate or reject the total budget adopted at the regional school unit budget meeting.

Every 3 4 years, the voters in a regional school unit shall consider continued use of the budget validation referendum process. The warrant at the budget validation referendum in the 3rd 4th year following adoption or continuation of the referendum process must include an article by which the voters of the school administrative unit may indicate whether they wish to continue the process for another 3 4 years. The warrant for the referendum to validate the fiscal year 2010-11 budget years 2019-20 and 2020-21 budgets is deemed the 3rd 4th-year warrant. A vote to continue retains the process for 3 4 additional years. A vote to discontinue the process ends its use beginning with the following budget year and prohibits its reconsideration for at least 3 4 years.

An article to consider reinstatement of the budget validation referendum process may be placed on a warrant for a referendum vote by either a majority vote of the regional school unit board or a written petition filed with the regional school unit board by at least 10% of the number of voters voting in the last gubernatorial election in the municipalities in the school administrative unit. The regional school unit board shall place the article on the next scheduled warrant or an earlier one if determined appropriate by the regional school unit board. If adopted by the voters, the budget validation referendum process takes effect beginning in the next budget year or the following budget year if the adoption occurs less than 90 days before the start of the next budget year. Once approved by the voters, the budget validation referendum process may not be changed for 3 4 years.

Sec. 11. 20-A MRSA §1486, sub-§4, as amended by PL 2011, c. 678, Pt. B, §1, is further amended to read:

4. Failure to approve budget. If the voters do not validate the budget approved in the regional school unit budget meeting at the budget validation referendum vote, the regional school unit board shall hold another regional school unit budget meeting in accordance with this section and section 1485 at least 10 days but no longer than 45 days after the referendum to vote on a budget approved by the regional school unit board. The budget approved at the regional school unit budget meeting must be submitted to the voters for validation at referendum in accordance with this section. The process must be repeated until a budget is approved at a regional school unit budget meeting and validated at referendum. If a budget is not approved and validated before July 1st of each the year, section 1487 applies.

Sec. 12. 20-A MRSA §1489, sub-§1, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

1. Warrant. In accordance with the budget approved by the voters at an annual a budget meeting and in substantially the same form as the warrant of the Treasurer of State for taxes, the regional school unit board shall issue its warrants to the assessors of each member municipality requiring them to assess upon the taxable estates within the municipality an amount that is that municipality's share of the regional school unit's costs.

Sec. 13. 20-A MRSA §1701, sub-§3, as amended by PL 2005, c. 2, Pt. D, §11 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is further amended to read:

3. Time and place. The district school committee shall call an annual a budget meeting on or before June 30th at an hour and in a location within the community school district it designates, except that the school committee may delay the annual budget meeting to a date after July 1st in accordance with section 15693, subsection 2, paragraph C. Prior to the 2019-20 fiscal year, the budget meeting must be an annual meeting for an annual budget. Beginning with the budget biennium that includes fiscal years 2019-20 and 2020-21 and each biennium thereafter, the budget meeting is a biennial budget meeting to establish a biennial budget.

Sec. 14. 20-A MRSA §15003, as enacted by PL 1981, c. 693, §§5 and 8, is amended to read:

§ 15003. School fiscal year

Notwithstanding any statute or charter provision to the contrary, a school administrative unit shall annually adopt a school budget for a period on a fiscal year basis, each fiscal year beginning on July 1st and ending on June 30th. Prior to the 2019-20 fiscal year, the school budget must be a one-year budget. Beginning with the budget biennium that includes fiscal years 2019-20 and 2020-21 and each biennium thereafter, the school budget must be a biennial budget.

Sec. 15. 20-A MRSA §15689-B, sub-§2, as enacted by PL 2005, c. 2, Pt. D, §61 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read:

2. Notification of allocation; commissioner's duty; superintendent's duty. The Within 5 days after the biennial state budget is enacted, the commissioner shall notify each school board of the estimated amount to be allocated to the school administrative unit over the course of each year of the biennium. In addition, the following provisions apply to notification of allocation by the commissioner and each superintendent.

A. The commissioner shall annually, prior to February 1st, notify each school board of the estimated amount to be allocated to the school administrative unit.

B. Each superintendent shall report to the municipal officers whenever the school administrative unit is notified of the allocation or a change is made in the allocation resulting from an adjustment.

Sec. 16. 20-A MRSA §15691, sub-§2, as enacted by PL 2005, c. 2, Pt. D, §62 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read:

2. Municipal treasurer's payment schedule. The treasurer of the member municipality, after being presented with the assessment schedule, shall in each fiscal year forward 1/12 of that member municipality's annual share to the treasurer of the district on or before the 20th day of each month of the that fiscal year beginning in July.

Sec. 17. 20-A MRSA §15693, sub-§1, ¶B, as enacted by PL 2005, c. 2, Pt. D, §62 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read:

Sec. 18. 20-A MRSA §15693, sub-§2, ¶¶B and C, as enacted by PL 2005, c. 2, Pt. D, §62 and affected by §§72 and 74 and c. 12, Pt. WW, §18, are amended to read:

B. Notwithstanding a provision of law or charter to the contrary, school administrative units may adopt an annual a budget prior to June 30th. The school budgets for career and technical education regions must be adopted on or before August 1st.

C. Notwithstanding any municipal charter provision, ordinance or other law to the contrary, if the level of state subsidy for the next school year is not finalized in accordance with this chapter before June 1st, the school board may delay a school budget meeting otherwise required to be held before July 1st to a date after July 1st. If a school board elects to delay a school budget meeting under this paragraph, the meeting must be held and the budget approved within 30 days of the date the commissioner notifies the school board of the amount allocated to the school administrative unit under section 15689-B. When a school budget meeting is delayed under this paragraph, the school administrative unit may continue operation of the unit at the same budget levels as were approved for the previous year. Continued operation under the budget for the previous year is limited to the time between July 1st and the date the new budget goes into effect.

Sec. 19. 20-A MRSA §15693, sub-§8, as enacted by PL 2005, c. 2, Pt. D, §62 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read:

8. Change in budget format. Any change in the budget format must be voted on at least 90 days prior to the budget year for in which that change is to be becomes effective.

SUMMARY

This bill changes the local school budgeting approval process, which is currently done on an annual basis, to a biennial process beginning with the biennium of fiscal years 2019-20 and 2020-21.

HP0518 LD 738	Session - 128th Maine Legislature		LR 838 Item 1
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