128th MAINE LEGISLATURE
		LD 601		LR 1730(02)
	An Act To Return the Normal Cost of Teacher Retirement to the State
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
			FY 2017-18	FY 2018-19	Projections  FY 2019-20	Projections  FY 2020-21
Net Cost (Savings)
	General Fund		$22,243,151	$22,329,171	$22,329,171	$22,329,171
Appropriations/Allocations
	General Fund		$22,243,151	$22,329,171	$22,329,171	$22,329,171
Fiscal Detail and Notes
	Public Law 2013, c. 368 enacted legislation that shifted the responsibility for funding the normal cost of teacher retirement from the State to local school administrative units with the State contributing a percentage of the cost as part of its contribution to the total cost of Pre-K-12 public education through the General Purpose Aid for Local Schools program (GPA).  This legislation proposes to repeal that law and return the responsibility for fully funding the normal cost component of teachers' retirement back to the State.  The net General Fund cost of this proposal is $22,243,151 in fiscal year 2017-18 and $22,329,171 in fiscal year 2018-19.
	This bill includes General Fund appropriations of $45,274,070 in fiscal year 2017-18 and $46,519,107 in fiscal year 2018-19 to the Teacher Retirement program, within the Department of Education as a result of the State being required to fund 100% of the normal cost of teacher retirement.
	This bill also includes General Fund deappropriations of $23,030,919 in fiscal year 2017-18 and $24,189,936 in fiscal year 2018-19 to the GPA program, within the Department of Education, to remove the State's share of the normal cost of teacher retirement, estimated to be 50.87 % in fiscal year 2017-18 and 52.00% in fiscal year 2018-19.