PRIORITY NOTICE: 2017-18 Enacted ED279 subsidy printouts now available

FY 2017-2018 ED 279 subsidy printouts, based on Public Law 2017 Ch. 284 are now available on the Department’s website: http://www.maine.gov/education/data/eps/epsmenu.htm

The 279 printouts reflect statutory changes to the funding formula as enacted by this legislation. (REMINDER: there will be a scheduled outage of the NEO system, where the 279s are available, from 7/13 – 7/17.)

A comparison of the State Contribution from the Not Yet Enacted Governor’s Recommended Funding Level to the Enacted Funding Level, is available at the following link: http://www.maine.gov/education/data/eps/fy18/index.html

As a reminder, Chapter 284, Part JJJJJJJ of the enacted budget bill contains language regarding required local action on the use of any increase in State subsidy. Please review this statutory language below and consult your school unit’s legal counsel should you need additional guidance. Please note that this section applies for both fiscal years 2017-18 and 2018-19.

Should you have questions regarding the subsidy printout, please contact the School Finance Team: tyler.backus@maine.gov; paula.b.gravelle@maine.gov; ida.batista@maine.gov

Public Law 2017 Ch. 284 PART JJJJJJJ

Sec. JJJJJJJ-4. 20-A MRSA §15690-A is enacted to read:

  • 15690-A. Local action on increase in state share percentage Notwithstanding section 1485, subsection 5, this section applies to school budgets adopted for fiscal years 2017-18 and 2018-19.
  1. Required reduction in local contribution. If the budget of a school administrative unit is based on assumptions that include an increase in state share, pursuant to section 15690, subsection 1, paragraph C, over the amount used in the most recent approved budget as the result of an increase in the state share of the school administrative unit’s total cost of funding public education from kindergarten to grade 12 under this chapter, the increase in state share must be used as follows.
  2. Fifty percent of the increase in state share pursuant to section 15690, subsection 1, paragraph C that is attributable to the increase in the state share over the state share amount used in the most recent approved budget must be used to lower the school administrative unit’s local contribution to the total cost of funding public education from kindergarten to grade 12.
  3. The remaining 50% may be used only to increase expenditures for school purposes in cost center categories approved by the local school board, increase the allocation of finances for a reserve fund or provide an additional amount to lower the required local contribution to the total cost of education.
  4. Warrant. If the budget of the school administrative unit is based on assumptions that include an increase in state share, pursuant to section 15690, subsection 1, paragraph C, over the amount used in the most recent approved budget as the result of an increase in the state share of the school administrative unit’s total cost of funding public education from kindergarten to grade 12 under this chapter, an article in substantially the form in paragraph A must be used to authorize the use of the increase in state share for the expenditures specified in subsection 1, paragraph B after the requirements of subsection 1, paragraph A are met.
  5. “Article…….: To see what sums will be appropriated for the following purposes from the amount of the anticipated increase in state share of the school administrative unit’s total cost of funding public education from kindergarten to grade 12 over the amount used in the most recent approved budget as the result of an increase in the state share of the school administrative unit’s total cost of funding public education from kindergarten to grade 12 under this chapter:

(1) (Amount appropriated) To increase expenditures for school purposes in cost center categories approved by the board (list of amounts by category should be provided);

(2) (Amount appropriated) To increase the allocation of finances in a reserve fund for the purpose of (name of reserve fund); and

(3) (Amount appropriated) To provide a decrease in the local contribution, as defined in the Maine Revised Statutes, Title 20-A, section 15690, subsection 1, paragraph A or B, section 15690, subsection 2 or section 15690, subsection 3 for local property taxpayers for funding public education.”

  1. If as a result of a vote on the article specified in paragraph A, subparagraph (3) a school administrative unit does not raise 100% of the required local contribution pursuant to section 15690, subsection 1, the school administrative unit may petition the commissioner to waive the required proration of the state share pursuant to section 15690, subsection 1, paragraph C.
  2. If the article is approved by the voters at the budget meeting, the board of the school administrative unit may increase expenditures for the purposes approved in the article without holding a special budget meeting and budget validation referendum.

Sec. JJJJJJJ-5. Permitted use of additional funding for 2017-18 school budget. Notwithstanding the Maine Revised Statutes, Title 20-A, section 15690-A, for school budgets for the 2017-18 fiscal year only, articles approved by the voters that earmarked additional state funding contributions for increased expenditures for school purposes in fiscal year 2017-18 are permitted as approved.