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PUBLIC LAWS OF MAINE
First Regular Session of the 121st

PART A

     Sec. A-1. 20-A MRSA §15652, sub-§6, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is amended to read:

     6. Property fiscal capacity. "Property fiscal capacity" means the lesser of the average of the state valuation amounts for the 2 most recent years prior to the year of funding or and the state valuation amount for the most recent year, except that for fiscal year 2004-05 "property fiscal capacity" means the lesser of the average of the state valuation amounts for the 3 most recent years prior to the year of funding and the state valuation amount for the most recent year.

     Sec. A-2. 20-A MRSA §15656, sub-§1, as enacted by PL 1999, c. 401, Pt. GG, §8, is amended to read:

     1. Pupil count used for operating costs. The resident pupil count used for operating costs in this chapter is the greater of the average of the 2 census counts for the most recent calendar year and the average of the 4 census counts for the 2 most recent calendar years, except that for fiscal year 2004-05 the resident pupil count used for operating costs in this chapter is the greater of the average of the 2 census counts for the most recent calendar year and the average of the 6 census counts for the 3 most recent calendar years.

     Sec. A-3. 20-A MRSA §15660 is enacted to read:

§15660. Repeal

     This chapter is repealed July 1, 2005.

     Sec. A-4. 20-A MRSA §15670 is enacted to read:

§15670. Short title

     This chapter may be known and cited as "the Essential Programs and Services Funding Act."

     Sec. A-5. 20-A MRSA §15671, sub-§7 is enacted to read:

     7. Transition; annual targets. To achieve the system of school funding based on essential programs and services required by this section, the following annual targets are established.

     Sec. A-6. 20-A MRSA §§15672 to 15687 are enacted to read:

§15672. Definitions

     As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

     1. Allocation year. "Allocation year" means the year that subsidy is distributed to school administrative units.

     2. Clerical staff. "Clerical staff" means full-time public school secretaries, as documented in the department's database.

     3. Economically disadvantaged students. "Economically disadvantaged students" means students who are included in the department's count of students who are eligible for free or reduced-price meals or free milk or both.

     4. Education technician. "Education technician" means a full-time public teacher aide or education technician I, associate teacher or education technician II or assistant teacher or education technician III but not a special education technician I, II or III, as documented in the department's database.

     5. Elementary free or reduced-price meals percentage. "Elementary free or reduced-price meals percentage" means the percentage, as determined by the commissioner, that reflects either:

     6. Elementary grades. "Elementary grades" means kindergarten to grade 8 and includes children enrolled in early kindergarten programs and 4-year-old children enrolled in a 2-year childhood education program prior to grade one.

     7. Elementary school level. "Elementary school level" means the grades from kindergarten to grade 5 and includes early kindergarten programs and 2-year childhood education programs enrolling 4-year-old children prior to grade one.

     8. Essential programs and services. "Essential programs and services" means those educational resources that are identified in this chapter that enable all students to meet the standards in the 8 content standard subject areas of the system of learning results established in chapter 222.

     9. Essential programs and services transition percentage. "Essential programs and services transition percentage" means the full estimated cost for all essential programs and services for that fiscal year that will be funded by a state contribution or by a required local contribution.

     10. Grade 9 to 12 portion. "Grade 9 to 12 portion" means those pupils in the secondary grades or high school level.

     11. Guidance staff. "Guidance staff" means full-time public guidance counselors, directors of guidance or school social workers, as documented in the department's database.

     12. Health staff. "Health staff" means full-time public school nurses, as documented in the department's database.

     13. High school level. "High school level" means grade 9 to grade 12.

     14. Income weight. "Income weight" means a value between zero and one that is used to adjust a municipality's ratio of local median household income to the statewide median household income. The income weight plus the property weight, as defined in subsection 24, must total one.

     15. Kindergarten to grade 8 portion. "Kindergarten to grade 8 portion" means those pupils in the elementary grades or a combination of the elementary school level and middle school level.

     16. Kindergarten to grade 2 student. "Kindergarten to grade 2 student" means a student in any grade from prekindergarten to grade 2 who is at least 5 years old on October 15th of the school year.

     17. Librarian. "Librarian" means a full-time public librarian or media specialist, as documented in the department's database.

     18. Limited English proficiency student. "Limited English proficiency student" means a student who was not born in the United States or whose native language is a language other than English and who satisfies the definition of a limited English proficient student under the federal No Child Left Behind Act of 2001, 20 United States Code, Chapter 70.

     19. Media assistant. "Media assistant" means a full-time public librarian aide or library technician I, librarian assistant or library technician II or librarian associate or library technician III, as documented in the department's database.

     20. Middle school level. "Middle school level" means grade 6 to grade 8.

     21. Municipality. "Municipality" means a city, town or organized plantation.

     22. Per-pupil guarantee. "Per-pupil guarantee" means the total amount of funds that is made available for each subsidizable pupil representing the following cost components:

     23. Property fiscal capacity. "Property fiscal capacity" means the lesser of the average of the state valuation amounts for the 3 most recent years prior to the year of funding and the state valuation amount for the most recent year.

     24. Property weight. "Property weight" means a value between zero and one that is used to adjust a municipality's ratio of local per-pupil property fiscal capacity to the statewide per-pupil property fiscal capacity. The income weight, as defined in subsection 14, plus the property weight must total one.

     25. School administrative staff. "School administrative staff" means full-time public school principals and assistant principals, as documented in the department's database.

     26. School administrative unit's local contribution to per-pupil guarantee. "School administrative unit's local contribution to the per-pupil guarantee" means the funds that a school administrative unit provides for each subsidizable pupil who resides in that unit.

     27. School administrative unit's state contribution to per-pupil guarantee. "School administrative unit's state contribution to the per-pupil guarantee" means the funds that the State provides to a school administrative unit for each subsidizable pupil who resides in that unit.

     28. School level. "School level" means elementary level, middle school level and high school level.

     29. School level teaching staff. "School level teaching staff" means full-time public classroom teachers, itinerant classroom teachers and special teachers of reading or literacy specialists excluding special education teachers and vocational education teachers, as documented in the department's database.

     30. Secondary grades. "Secondary grades" means grade 9 to grade 12.

     31. State share percentage. "State share percentage" means the percentage of the sum of the following amounts that is provided by a state appropriation:

     32. Subsidizable pupils. "Subsidizable pupils" means all school level pupils who reside in a school administrative unit and who are educated at public expense.

     33. Year of funding. "Year of funding" means the fiscal year during which state subsidies are disbursed to school administrative units, except as specified in section 15005, subsection 1.

§15673. Relationship to School Finance Act of 1985

     The provisions of chapter 606 apply except as described in this section.

     1. Operating costs mill rate. The operating costs mill rate, as described in chapter 606, is in effect for the limited purposes of determining the state and local shares of each school administrative unit's program costs allocation and its debt service allocation and for determining the amount required to provide the total state share of the operating allocation under this Act. For each individual school administrative unit, the amounts described in section 15681 are used rather than the amounts in section 15608, subsection 1; section 15609, subsection 1, paragraph A; or section 15610, subsection 1, paragraph A.

§15674. Pupil counts

     1. Pupil counts used for determination of operating costs. In addition to the additional weighted counts authorized under section 15675 and except as provided in subsection 2, the pupil count used for operating costs in this Act is the sum of:

     2. Exception. Notwithstanding subsection 1, paragraph C, the pupil count identified in subsection 1, paragraph C, subparagraph (1) must be used for:

§15675.   Specialized student populations; additional weights

     For the purpose of calculating the total operating allocation under this chapter pursuant to section 15683, the following additional weights must be added to the per-pupil count calculated under section 15674, subsection 1, paragraph C, subparagraph (1).

     1. Limited English proficiency students. The additional weights for school administrative units with limited English proficiency students are as follows:

     2. Economically disadvantaged students. For each economically disadvantaged student, a school administrative unit receives an additional weight of .15. The number of economically disadvantaged students for each unit is determined by multiplying the number of resident pupils in the most recent calendar year by the most recent available elementary free or reduced-price meals percentage. The elementary free or reduced-price meals percentage may be applied to determine the number of economically disadvantaged students in the unit's secondary grades.

     3. Kindergarten to grade 2 students. If a school administrative unit is eligible to receive targeted funds for its kindergarten to grade 2 program under section 15681, then for each kindergarten to grade 2 student, the unit receives an additional weight of .10.

§15676. Per-pupil guarantee

     For each school administrative unit, the commissioner shall calculate the unit's per-pupil guarantee for each year as the sum of:

     1. Teaching staff costs. The salary and benefit costs for school level teaching staff that are necessary to carry out this Act, calculated in accordance with section 15678;

     2. Other staff costs. The salary and benefit costs for school-level staff who are not teachers, but including substitute teachers, that are necessary to carry out this Act, calculated in accordance with section 15679; and

     3. Additional costs. The per-pupil amounts not related to staffing, calculated in accordance with section 15680.

§15677. Salary matrix

     1. Salary matrix defined. For purposes of this section, "salary matrix" means the relationships on a statewide basis between average staff salaries and:

     2. Determination of matrix. The salary matrix must be determined in accordance with the following.

§15678.   Calculation of salary and benefit costs; school level teaching staff

     1. Salary and benefit costs; teaching positions. The commissioner shall annually determine, for each school administrative unit, the salary and benefit costs of all school level teaching positions that are necessary to carry out this Act.

     2. Ratios. In calculating the salary and benefit costs pursuant to this section, the commissioner shall utilize the following student-to-teacher ratios.

     3. Number of teaching positions required. The commissioner shall identify for each school administrative unit, using the pupil count arrived at under section 15674, subsection 1, paragraph C, subparagraph (1), the number of school level teaching positions that are required in order to achieve the student-to-teacher ratios set forth in subsection 2.

     4. Estimated salary costs. The commissioner shall determine the estimated salary cost for the number of school level teaching positions required under subsection 3. In order to calculate this amount, the commissioner shall use the salary matrix pursuant to section 15677 for all school level teaching positions in each category.

     5. Total salary and benefit costs for school level teaching staff. The total salary and benefit costs for school level teaching staff are equal to the sum of:

§15679.   Calculation of salary and benefit costs; other school level staff

     1. Salary and benefit costs; other school level positions. The commissioner shall annually determine, for each school administrative unit, the salary and benefit costs of all school level positions other than teaching positions, referred to in this section as "staff," that are necessary to carry out this Act.

     2. Students-to-staff ratios. In calculating the salary and benefit costs pursuant to this section, the commissioner shall utilize the following student-to-staff ratios.

     3. Number of staff positions required. The commissioner shall identify for each school administrative unit, using the pupil count arrived at under section 15674, subsection 1, paragraph C, subparagraph (1), the number of staff positions that are required in order to achieve the student-to-staff ratios set forth in subsection 2.

     4. Estimated salary costs. The commissioner shall determine the estimated salary costs for the number of staff positions required under subsection 3. In order to calculate this amount, the commissioner, where appropriate, shall use the salary matrix pursuant to section 15677 for all staff positions in each category.

     5. Salary costs for substitute teachers. The commissioner shall calculate the additional salary costs for substitute teachers for each school administrative unit using the pupil count arrived at under section 15674, subsection 1, paragraph C, subparagraph (1). In order to calculate this amount, the commissioner shall establish a per-pupil rate for the cost of a substitute teacher for 1/2 day.

     6. Total salary and benefit costs for staff. The total salary and benefit costs for staff is equal to the sum of:

§15680. Per-pupil amounts not related to staffing

     1. Additional cost components. The commissioner shall calculate one set of per-pupil amounts for each of the following cost categories to be applied to the elementary school level and middle school level and shall calculate another set of per-pupil amounts for each of the following cost categories to be applied to the high school level:

     2. Fiscal year 2005-06. For fiscal year 2005-06, the commissioner shall submit the per-pupil amounts for additional cost components under subsection 1 to the state board for approval.

     3. Fiscal year 2006-07 and beyond. For fiscal year 2006-07 and for each subsequent year, the commissioner shall recalculate the per-pupil amounts for additional cost components under subsection 1 using the amounts approved by the state board under subsection 2 as a base and appropriate trends in the Consumer Price Index or other comparable index.

     4. Review; approval. Beginning in fiscal year 2006-07, and at least every 2 years thereafter, the commissioner, using information provided by a statewide education policy research institute, shall review the essential programs and services compo-nents under this Act and shall submit any recommended changes to the state board for approval.

§15681. Targeted funds

     1. Eligibility. In order for a school administrative unit to receive targeted funds under this section, the school administrative unit must meet the following eligibility criteria.

     2. Targeted student assessment funds. For targeted student assessment funds, the commissioner shall calculate one amount that may be made available to the elementary school level and middle school level and another amount that may be made available to the high school level in accordance with the following.

     3. Targeted technology resource funds. For targeted technology resource funds, the commissioner shall calculate one amount that may be made available to the elementary school level and middle school level and another amount that may be made available to the high school level in accordance with the following.

     4. Kindergarten to grade 2 funds. For targeted kindergarten to grade 2 funds, the commissioner shall calculate the amount that may be made available to eligible school administrative units as follows.

     5. Review; approval. Beginning in fiscal year 2006-07, and at least every 2 years thereafter, the commissioner, using information provided by a statewide education policy research institute, shall review the targeted amounts under this section and shall submit any recommended changes to the state board for approval.

§15682. Regional adjustment

     The commissioner shall make a regional adjustment in the total operating allocation for each school administrative unit determined pursuant to section 15683. The regional adjustment must be based on the regional differences in teacher salary costs within labor market areas in the State, as computed by a statewide education policy research institute, and must be applied only to appropriate teacher salary and benefits costs as calculated under section 15678. Beginning in fiscal year 2006-07, and at least every 2 years thereafter, the commissioner, using information provided by a statewide education policy research institute, shall review the regional adjustment amounts under this section and shall submit any recommended changes to the state board for approval.

§15683. Total operating allocation

     For each school administrative unit, that unit's total operating allocation is the base total set forth in subsection 1 as adjusted in accordance with subsection 2.

     1. Base total. The base total of a school administrative unit's total operating allocation is the sum of:

     2. Adjustments. The base total calculated pursuant to subsection 1 must be adjusted as follows.

§15684.    School administrative unit contributions to total operating allocation

     1. School administrative unit's local share percentage. For each school administrative unit, the commissioner shall annually determine the unit's local share percentage of its total operating allocation.

     2. School administrative unit; contribution. For each school administrative unit, the commissioner shall annually determine the school administrative unit's contribution in accordance with the following.

§15685. Weighted relative property fiscal capacity

     For each school administrative unit, the commissioner shall annually determine the unit's weighted relative property fiscal capacity. This determination is the result of the following steps.

     1. Fiscal capacity. The local per-pupil property fiscal capacity divided by the statewide per-pupil property fiscal capacity as computed by the commissioner is multiplied by a property weight of 0.85.

     2. Local median household income. The local median household income is divided by the statewide average median household income. The final result is multiplied by an income weight of 0.15. The department shall use local median household income data as estimated at the fiscal year 1997-98 level until final Federal Decennial Census figures are established for the year 2000. The fiscal year 1997-98 estimated census figures must be adjusted so that no municipality's census figure exceeds twice the state average percentage increase from fiscal year 1996-97 to fiscal year 1997-98.

     3. Weighted relative property fiscal capacity. The results of subsection 1 and subsection 2 are added and the sum represents the weighted relative property fiscal capacity.

§15686. Transition adjustment

     For each of the fiscal years described in section 15671, subsection 7, the commissioner shall establish a transition adjustment calculated to minimize the fiscal impact directly related to the phase-in of this Act. The amount of this adjustment must decline with each successive fiscal year, and the adjustments must end no later than fiscal year 2009-10.

§15687. Rules

     The commissioner shall adopt rules to implement this Act. Rules adopted pursuant to this section are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.

     Sec. A-7. Review of data. By October 1, 2006, the Commissioner of Education, in consultation with the Maine Education Policy Research Institute, shall review data on limited English proficiency students, including the number of students in the State qualifying for limited English proficiency status and the costs attributable to English as a 2nd language programs. The commissioner shall submit the results of this review to the State Board of Education.

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