121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1391
		An Act To Approve Public Charter Schools in Maine
		LR 0960(02)
		Fiscal Note for Bill as Amended by Committee Amendment " "
		Committee: Education and Cultural Affairs
		Fiscal Note Required: Yes
		Minority Report
Fiscal Note
Undetermined current biennium cost increase - General Fund
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Appropriations/Allocations
	Other Special Revenue Funds		$1,000	$1,000	$1,000	$1,000
Fiscal Detail and Notes
	This bill establishes charter schools as a new type of public school that will be part of the State's program of public education.  The requirement that all state and local funding associated with operating, program and special education costs follow each child to the charter school the child attends will result in a significant redistribution of the funds available from the General Purpose Aid for Local Schools program.  The impact to individual school units can not be determined at this time.  Additionally, although this bill defines charter schools as a "school administrative unit" and therefore allows charter schools to be eligible for General Purpose Aid for Local Schools, it is not clear how the charter schools will raise the local share required in order to receive state subsidy.  The additional cost to the Department of Education and the State Board of Education associated with implementing this legislation can not be determined at this time.
	This bill establishes the Charter School Fund within the Department of Education to obtain funds from private and public sources to support activities related to developing an effective charter school program in the State.  This bill includes Other Special Revenue Funds base allocations of $500 in fiscal years 2003-04 and 2004-05 for the Department of Education to establish the Charter School Fund.
	This bill also establishes the Impact Aid Fund within the Department of Education to provide financial support to school administrative units with fewer than 600 students who may have been negatively impacted by the establishment of a public charter school in their area and authorizes the Department to contribute $50,000 per year for the next four years.  This legislation allows funds to be transferred from the Charter School Fund to support the Impact Aid Fund.  However, it is unclear whether sufficient funds will be available from the Charter School Fund for this purpose.  The ability of the Department to contribute $50,000 to this fund without additional General Fund appropriations can not be determined at this time.  This bill includes an additional Other Special Revenue Fund base allocation of $500 in fiscal year 2003-04 and $500 in fiscal year 2004-05 for the Department of Education to establish the Impact Aid Fund.
	Finally, this bill allows for teachers in a non-charter school who are members of the Maine State Retirement System and take a leave of absence to teach in a charter school to continue to participate in the retirement system while on leave.  Although this legislation is not clear who will be responsible for the cost, the employee and employer contribution rate for those teachers must continue to be paid.