123rd MAINE LEGISLATURE
		LD 1020		LR 96(02)
	An Act To Renew the Promise of Higher Education
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$3,330,300	$3,363,182	$3,436,150	$3,511,745
Appropriations/Allocations
	General Fund		$3,330,300	$3,363,182	$3,436,150	$3,511,745
Fiscal Detail and Notes
	This bill includes ongoing General Fund appropriations totaling $3,330,300 in fiscal year 2007-08 and $3,363,182 in fiscal year 2008-09 for the Finance Authority of Maine to establish and administer the Maine's Promise Grant Program.  Of these amounts,  $3,281,000 and $3,353,182 is appropriated in fiscal years 2007-08 and 2008-09, respectively, to provide need-based grants to students from low-income households who have been admitted to a public institution of higher education in the State.  The cost estimates are based on the following assumptions:  1)  the grant award is available to individuals with an expected family contribution (EFC) of zero; 2)  the cost of attendance at the Community College is estimated to be $10,500; 3) an estimated unmet need of approximately 15%; 4) the number of students with a zero EFC is estimated to be 2,500 based on the 2006 FAFSA filings for Maine residents; and 5) a 75% anticipated participation rate.  The cost will be higher or lower based on actual experience.
	This bill also includes ongoing General Fund appropriations of $49,300 in fiscal year 2007-08 and $10,000 per year beginning in fiscal year 2008-09 for the initial start-up costs and ongoing administrative costs associated with administering the program.