122nd MAINE LEGISLATURE
LD (not known) LR 2170(01)
An Act to Provide a Schedule of School Funding that Provides 55% State Coverage of the Cost of EPS Over a Period of 2 Years
Fiscal Note for Original Bill
Sponsor:  Submitted by the Joint Select Committee on Property Tax Reform pursuant to Joint Order 2005, H.P. 108.
Fiscal Note Required: Yes
   
             
Fiscal Note
Contingent on voter approval at a statewide referendum in November 2005
Projections Projections
2005-06 2006-07 2007-08 2008-09
Net Cost (Savings)
General Fund ($16,092,328) $11,336,133 ($30,485,770) ($79,826,553)
Appropriations/Allocations
General Fund $13,590,462 $104,344,596 $66,248,807 $20,924,700
Other Special Revenue Funds $6,962,382 $19,929,786 $20,433,652 $20,730,626
Revenue
General Fund $29,682,790 $93,008,463 $96,734,577 $100,751,253
Other Special Revenue Funds $1,630,699 $5,134,661 $5,339,047 $5,559,371
Referendum Costs Month/Year Election Type Question Length
Nov-05 General Referendum Standard
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November. If the number or size of the referendum questions increases the ballot length, an additional appropriation of $8,000 or more may be required.
Fiscal Detail and Notes
General Fund Summary - Costs (Savings) 2005-06 2006-07 2007-08 2008-09
Additional approp needed to fund EPS in bill above Governor's Current Services Budget Proposal for the 2006-2007 Biennium1 $6,463,417 $84,241,825 $45,632,067 $0
Additional approp needed to fund Efficient Delivery of Educational Services Fund 2 $6,962,382 $19,929,786 $20,433,652 $20,730,626
Sales Tax to 5.5% March 1, 2006 ($22,786,435) ($71,246,466) ($74,299,500) ($77,595,696)
Amusement/Recreation Tax @ 5.5% ($6,850,801) ($21,168,840) ($21,841,920) ($22,562,400)
Sales Tax on Mooring/Docking Fees @ 7% ($45,554) ($593,157) ($593,157) ($593,157)
Maine Revenue Services Administrative Costs $164,663 $172,985 $183,088 $194,074
Net General Fund Cost (Savings) ($16,092,328) $11,336,133 ($30,485,770) ($79,826,553)
1 Amount of additional General Fund appropriation required is a function of funding EPS model as in LD 1 vs. what is included in the Governor's Proposed Current Services Budget for the 2006-2007 Biennium.  It does not reflect the impact of IB 2003, Chapter 2, approved by the voters on June 8, 2004, which becomes operative in January of 2005, barring legislative action.
2 Establishes the Fund for the Efficient Delivery of Educational Services as a dedicated fund within the Department of Education that was approved by the voter's in IB 2003, c. 2.  However, this bill differs from IB 2003, c. 2 in that it proposes to phase-in the requirement that 2% of the annual state appropriation for education be dedicated to providing incentive-based resources to those local school units or municipalities that develop sustainable cost savings in the delivery of educational services. It also allows for the funds to be used for transition adjustments in fiscal year 2005-06 only in order to minimize the adverse fiscal impact that may be experienced by some municipalities as a result of the phase-in of the Essential Programs and Services model.
Local Government Fund Impact 2005-06 2006-07 2007-08 2008-09
Revenue increase - Sales to 5.5%  $   1,249,889  $   3,908,034  $   4,075,500  $   4,256,304
Revenue increase - Amusement Tax @ 5.5%  $      375,782  $   1,161,160  $   1,198,080  $   1,237,600
Revenue increase - Mooring/Docking @ 7%  $         2,630  $       34,248  $       34,248  $       34,248
Net Change  $   1,628,301  $   5,103,442  $   5,307,828  $   5,528,152
This fiscal estimate is based on the Governor's draft budget proposals as presented on January 7, 2005 and may have to be revised based on final legislative actions.