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This bill makes
several changes to the school funding formula under the Essential Programs
and Services Funding Act, beginning in fiscal year 2027-28, which are
expected to increase the State's share of the total cost of education. These
changes include: updating the regional adjustment to staff salaries to
account for current labor market variation across the State (which is
estimated to increase the total cost of education by $70,700,000);
introducing a variable mill rate that accounts for a school administrative
unit's (SAU's) property tax base and poverty rate (which will not change the
total cost of education but will redistribute it among SAUs and shift a small
portion from SAUs to the State); and preserving the State subsidy for SAUs
that would otherwise receive a lower subsidy as a result of the prior two
changes (which will not change the total cost of education but will
redistribute it from SAUs to the State).
Collectively, these changes are expected to increase the total cost of
education by $70,700,000 per year, beginning in fiscal year 2027-28. The
State's share of this cost is expected to be $44,720,000 per year, of which
$39,600,000 will fund the State's share of the regional adjustment to staff
salaries; $20,000 will fund the slight reduction in the collective local
share due to the new variable mill rate; and $5,100,000 will preserve the
State subsidy for SAUs that would otherwise see their subsidies decrease. The
additional cost to local school units is estimated to be $25,980 per year.
These estimates are based on funding data for fiscal year 2026-27 and are
intended to be illustrative. The actual changes to the total cost of
education and State and local shares cannot be determined until funding data
for fiscal year 2027-28 is available.
The Maine Education Policy Research Institute is expected to complete the
further study required by this bill within its existing scope of work and
therefore will not require additional funding. |