Enacted 2011-12 General Purpose Aid for Local Schools

ADMINISTRATIVE LETTER:  46
POLICY CODE:  DB

The following administrative letter and the enacted 2011-12 ED279 subsidy printouts were sent to superintendents of schools by U.S. Mail on June 28, 2011. The 2011-12 ED279 subsidy printouts are not available electronically, though hard copies should be available from superintendents’ offices.

The enclosed is a subsidy printout (ED279) for your school administrative unit(s) based on Public Law 2011 Chapter 380 enacted by the 125th Legislature.  Please note that some calculations included in these printouts are estimated.

Answers for many frequently asked questions on the Enacted General Purpose Aid for Local Schools (GPA) Funding for FY 2011-12 are provided in the “Fact Sheet” that is included with this letter and published below.

Key changes in the ED279 include the following:

  • Mill expectation – the mill expectation is 7.50 mills.  The mill expectation for conforming units has been lowered to 7.47 mills.
  • Federal ARRA Title XIV Stabilization Funds – the 2011-12 funding level does not include ARRA State Fiscal Stabilization Funds as those funds are no longer available.
  • Adult Education Course counts – the adult education course counts on line 21 have been updated to actual counts from the EF-M-39A (January to June 2010) and the EF-M-39B (July to December 2010).
  • Un-bonded School Construction projects – school construction projects approved for state participation that have not been bonded:  the principal and interest amounts for un-bonded school construction projects are NOT included in this estimate. If you have an un-bonded project, you must estimate the local AND state impact and include these amounts in your budget for FY 2011-12.
  • Minimum special education adjustment – the minimum special education adjustment pursuant to 20-A MRSA Section 15689, subsection 1, as amended, is 30% of the EPS Special Education Allocation.
  • Minimum state allocation adjustment – the minimum state allocation adjustment pursuant to 20-A MRSA Section 15689, subsection 1, as amended, is 3% of the EPS per-pupil rates.
  • Non-conforming unit penalties – penalties pursuant to 20-A MRSA Section 15696 have been applied for non-conforming units.  The results of these penalties will appear on the ED279 in Section D and/or on Lines 49B, 49C and 49D.

For additional questions regarding these estimates, please contact Jim Rier, Suzan Beaudoin, Joanne Allen or Paula Gravelle of the Department of Education’s School Finance and Operations team. Their email addresses are, respectively, jim.rier@maine.gov, suzan.beaudoin@maine.gov, joanne.allen@maine.gov and paula.b.gravelle@maine.gov.

FACT SHEET

ED279 “Computation of Unit Allocation to Fund Public Schools”

For use with ENACTED FY 2011-12 subsidy amounts

 Please use the following notes to analyze your school unit’s subsidy amount(s):

Please keep in mind the power of the variables of state valuation, student enrollment, and the overall amount of GPA recommended.  For your unit(s), subsidy is largely determined by these trends.  In general, if a unit’s pupil count decreases from one year to the next, its GPA amount will decline (assuming all other factors remain unchanged).  Current statute, which provides for averaging pupil counts over six (6) census points if there is a decline in the number of pupils, will help soften this impact.  Similarly, if a unit’s state valuation amount increases from one year to the next, its GPA state share amount will also decline (again assuming all other factors remain unchanged).  A comparison of valuations and pupils is available at the following website:

http://www.maine.gov/education/data/statevaluation/statevalmenu.htm

2011-12 PRELIMINARY Subsidy Amounts

The subsidy for your unit(s) is based on the following information:

Note:  The data used for 2011-12 subsidy calculations must have been received in accordance with the due dates established in Administrative Letter 18 of Oct. 4, 2010.

ED279 Student Information:

  • Page 1 Lines 9, 10 and 11:  Attending student counts used for the calculation of EPS Per-Pupil Rates are based on the average of the April 1, 2010 attending students and the October 1, 2010 attending students from the MEDMS Student Information System.
  • Page 2 Lines 19 Resident Pupils and 21 Basic Counts:  Resident student counts used for the calculation of Operating allocations are based on the average of the April 1, 2010 and the October 1, 2010 subsidizable students from the MEDMS Student Information System.
  • Page 2 Line 21 Basic Counts:  Adult Education course counts have been updated to actual counts from the EF-M-39A for January 2010 through June 2010 and the EF-M-39B for July 2010 through December 2010.
  • Page 2 Line 21 Basic Counts:  Equivalent Instruction student counts used for the calculation of Operating allocations are based on the average of the April 1, 2010 subsidizable students and the October 1, 2010 subsidizable students from the MEDMS Student Information System.
  • Page 2 Line 21 Weighted Counts:  The percentage of “resident” disadvantaged students is derived from information reported as of October 1, 2010 from the MEDMS Student Information System.
  • Page 2 Line 21 Weighted Counts: The count of limited English proficient students is derived from information reported as of October 1, 2010 from the MEDMS Student Information System.
  • Page 2 Line 21 Targeted Funds: Kindergarten through Grade 2 resident student counts used for the calculation of Operating allocations are based on the average of the April 1, 2010 and the October 1, 2010 subsidizable students from the MEDMS Student Information System.

Note:  April 1, 2010 counts were downloaded from the MEDMS Student Information System as of September 23, 2010 and October 1, 2010 counts were downloaded from the MEDMS Student Information System as of December 1, 2010.

ED279 EPS Per-Pupil Rates:

  • Page 1 Line 13 B. through G.:  The EPS per-pupil rates for each school administrative unit have been updated and based on 2010-11 MEDMS staff information data for FTE counts as of December 8, 2010.  Each school administrative unit’s EPS Per-Pupil Rates include the following per-pupil amounts not related to staffing, pursuant to 20-A MRSA §15680, in accordance with the amounts determined pursuant to 20-A MRSA Section 15680:
Category

K-8 Per Pupil Amount

9- 12 Per Pupil Amount

System Administration

$218

$218

Operation & Maintenance of Plant

$1002

$1191

Supplies and Equipment

$342

$473

Co-curricular and Extra-curricular

$34

$113

Professional Development

$58

$58

Instructional Leadership Support

$24

$24

ED279 EPS Per-Pupil Rates for Targeted Funds:

  • Page 2 Line 21 Targeted Funds:  Targeted EPS per-pupil rates not related to staffing, pursuant to 20-A MRSA §15680, are listed separately on the subsidy printouts.  The amounts determined pursuant to 20-A MRSA Section 15680 are as follows:
Category

K-8 Per Pupil Amount

9- 12 Per Pupil Amount

Standards Based Implementation

$43

$43

Technology Resource

$97

$293

 ED279 Section B. Other Subsidizable Costs:

  • Line 31, Gifted and Talented Expenditures:  The Gifted & Talented Allocation is based on expenditures reported to the MEDMS Financial System but not exceeding the approved budget amount for 2009-10 approved gifted and talented programs.
  • Line 32, Special Education – EPS Allocation:  The Special Education EPS allocation is based on 20-A MRSA Section 15681-A, subsections 2 and 2-A.  This allocation includes an estimated amount for the High Cost Out-of-District placement adjustments.  These estimates will be replaced with actual amounts when the data are available later in the 2011-12 fiscal year from the EF-S-214 report.  For those units that are eligible for a “maintenance of effort” adjustment, the amount that the EPS Allocation is compared to is based on the State & Local expenditures reported to the MEDMS Financial System (excluding Gifted & Talented) and the MEDMS web-based EF-S-07 report less MaineCare revenues reported to the MEDMS Financial System, and has been adjusted for changes in students from 2009-10 school year to 2010-11 school year.
  • Line 34, Vocational Education Expenditures:  The Vocational Education Expenditures are based on expenditures reported to the MEDMS Financial System for 2009-10 for approved CTE programs.
  • Line 35, Transportation – EPS Allocation:  The Transportation EPS allocation is based on 20-A MRSA Section 15681-A, subsections 3 and 3-A.
  • Line 36, Bus Purchases:  Approved bus purchase payment amounts are in accordance with approvals by the Department of Education’s School Transportation Specialist and are based on the new state bus contract and are available on the following website: http://www.maine.gov/education/const/trans/pt005.htm  Subsidies for approved bus purchases may change following a review of the unit’s reported actual end-of-year expenditures in the MEDMS Financial System for FY 2010-11.

ED279 Section C. Debt Service Allocations:

  • Line 41:  Principal and Interest:  Includes the principal and interest payments or portion of principal and interest payments for school construction projects that have already been bonded and that have been approved for state participation.
  • School construction projects approved for state participation that have not been bonded:   The principal and interest amounts for un-bonded school construction projects are NOT included in this ED279 printout.    If you have an un-bonded project, you must estimate the local AND state impact and include these amounts in your budget for FY 2011-12.  Once these projects have been bonded and actual repayment schedules are received by the Department of Education, subsidy will be recalculated to include the 2011-12 subsidizable payments.
  • Local only debt service:   The principal and interest payments or portion of principal and interest payments that are solely the responsibility of the local school administrative unit are not eligible to be included in the ED279; however, you must include these amounts in your budget for FY 2011-12.
  • Lines 43 & 43A – Lease and Lease Purchase of Space:  Approved lease-purchases and approved leases are in accordance with approvals by the Department of Education School Facilities staff and are available on the following website: http://www.maine.gov/education/const/lease/home.htm Subsidies for approved lease-purchases and for approved leases may change following a review of the unit’s reported actual end-of-year expenditures in the MEDMS Financial System for FY 2010-11.
  • Line 44 – Insured Value Factor:  The insured value factor on the 2011-12 ED279 will be based on 2009-10 expenditures (MEDMS Financial).

ED279 Section D. Local Contribution Calculation – Mill Expectation:

  • State Valuation:  The state valuation for each municipality is the certified state valuation for 2010 from Maine Revenue Services.
  • Average Calendar Year Resident Pupils – RSUs, SADs and CSDs only:   Resident student counts used for the calculation of the average calendar resident pupils are based on the average of the April 1, 2010 and the October 1, 2010 resident students from the MEDMS Student Information System excluding students transferred under a superintendent’s agreement.
  • Non-conforming unit penalties:  The penalties for the 2% increase in the mill expectation and one-half of system administration EPS per-pupil rate will appear in this section for non-conforming units.

ED279 Section E. Totals and Adjustments:

  • Line 49 – Total Allocation, Local and State Contribution:  Indicates the Total Allocation and the Local and State Contributions prior to any adjustments.
  • Lines 49A, 49B, 49C, or 49D:  These lines will only print if a school administrative unit is eligible for any of the following adjustments:
  • Line 49A Adjustment for Debt Service per 20-A MRSA Section 15689, subsection 2. For eligible school administrative units, this adjustment will reduce the local contribution and increase the state contribution.
  • Line 49B Adjustment for 30% of EPS Special Education Allocation per 20-A MRSA Section 15689, subsection 1. For eligible school administrative units, this adjustment will reduce the local contribution and increase the state contribution.  A 50% penalty has been applied for non-conforming units.
  • Line 49C Minimum State Allocation Adjustment per 20-A MRSA Section 15689, subsection 1. For eligible school administrative units, this adjustment will reduce the local contribution and increase the state contribution.  A 50% penalty has been applied for non-conforming units pursuant to 20-A MRSA Section 15696.
  • Line 49D Minimum Special Education Adjustment for Towns in Regional School Units per 20-A MRSA Section 15689, subsections 1-A and 1-B for 30% of the EPS Special Education Allocation. For eligible school administrative units, this adjustment will reduce the local contribution and increase the state contribution.  The reduction to the local contribution must be applied to the eligible municipality.  A 50% penalty has been applied for non-conforming units pursuant to 20-A MRSA Section 15696.
  • Line 49E Adjustment for Debt Service per 20-A MRSA Section 15689, subsection 2. For eligible school administrative units in Regional School Units, this adjustment will reduce the local contribution and increase the state contribution.
  • Line 50 – Adjusted Allocation, Local and State Contribution:  Indicates the Total Allocation and the Local and State Contributions after any adjustments on lines 49A, 49B, 49C, 49D and/or 49E.
  • Lines 51 and 52 – Plus or Less Audit Adjustments:  The subsidy amount has been adjusted for those units with existing audit adjustments as of the date of this printout.
  • Line 53 – Less Adjustment for Un-appropriated Required Local Contributions:  A school administrative unit’s subsidy may be reduced, if the unit does not raise the full amount of the required local contribution of the cost for funding public education from kindergarten to grade 12 for FY 2011-12 pursuant to 20-A MRSA Section 15690, subsection 1, paragraph C.  However, the unit’s state subsidy will not be reduced pursuant to 20-A MRSA Section 15690, subsection 1, paragraph C if the school administrative unit raises at least 82.22% of the required local contribution (Line 50).  The 82.22% represents the percentage that the proposed state share percent of 45.22% falls below the state’s target of 55% (proposed 45.22% / 55% = 82.22%).
  • Line 54 – Less Adjustment for Unallocated Ending Balances in Excess of 3%:  A school administrative unit’s subsidy may be reduced, if the unit has an unallocated ending balance exceeding 3% of the FY 2010-11 budget that the local school board has not agreed to disburse in the next fiscal year or over a period not to exceed 3 years pursuant to 20-A MRSA Section 15689-B, subsection 6.
  • Line 55 – Plus Long-Term Drug Treatment Centers Adjustment:  The subsidy amount has been adjusted for eligible units that provide educational programs to students in Long-Term Drug Treatment Centers pursuant to 20-A MRSA Chapter 327.
  • Line 56 – Adjustment for Emergency Bus Replacement:  This line should be zero.  The final payment occurred in 2008-09.
  • Line 59A – Minimum Teacher Salary Adjustments:  At this time, the subsidy amount has NOT been adjusted for the annual payments for those units for eligible staff with salaries below $30,000.   These amounts will be included once the 2011-12 Staff Information System data is available and each eligible unit’s 2011-12 Minimum Teacher Salary Report has been verified.
  • Line 59B – Regionalization and Efficiency Assistance:  At this time, the subsidy amount has NOT been adjusted for any regionalization and efficiency assistance.

ED279 Section F. Adjusted Local Contributions by Town (AOSs, RSUs, SADs and CSDs only):

This section appears only if an Alternative Organizational Structure (AOS), Regional School Unit (RSU), School Administrative District (RSU/SAD) or a Community School District (CSD) has adjustments on lines 49A, 49B, 49C, 49D and/or 49E.  This section provides an adjustment of the local contributions by municipality required for the unit’s warrant article pursuant to 20-A MRSA Section 15690, subsection 1, and paragraph B.

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