123rd MAINE LEGISLATURE
		LD 1932		LR 3324(04)
	An Act To Amend the Laws Regarding School Funding
	Fiscal Note for Senate Amendment "     "
	Sponsor: Sen. Raye of Washington
	Fiscal Note Required: Yes
Fiscal Note
Potential future biennium cost increase - General Fund
Fiscal Detail and Notes
	Although this legislation will not impact the total state and local cost of funding K-12 public education in fiscal year 2008-09, it may affect the distribution of subsidy to local school administrative units (SAU's) with some units receiving more subsidy and some units receiving less subsidy.  The impact to individual school administrative units can not be determined at this time.
	Providing school administrative units with the option of forming a union school association that serves a minimum of 1,000 students versus the paramenters established in Public Law 2007, chapter 240, Part XXXX may increase the total cost of K-12 public education in future biennia due to less savings being achieved.  The amount can not be determined at this time and will depend on the number of union school associations established, the number of students served by the associations, and the ability of union school associations to implement efficiencies that will reduce its per-pupil expenditures in order to be more in line with the state average.  Information provided by the Department of Education indicates that, for fiscal year 2005-06,  the average per-pupil expenditures for school unions that served pre-kindergarten to grade 8 students was $1,009 higher than the state average and $1,385 higher for school unions that served pre-kindergarten to grade 12 students.
	One example is in the special education area.  Title 20-A, §15681-A, sub-§2(D) requires that school administrative units receive sufficient funds for special education to ensure that the SAU's meet the federal maintenance of effort requirement for receiving federal Individuals with Disabilities Act funds.  The maintenance of effort requirement states that the total amount of state and local funds budgeted by the local education agency for expenditures in a current fiscal year for the education of children with disabilities must be at least equal to the total amount of state and local school funds actually expended for the education of children with disabilities in the most recent preceding fiscal year.  A smaller composition of school administrative units (1,000 students vs. 1,200 students) may result in less savings being achieved, thus requiring a higher level of state and local funding in order to fulfill the maintenance of effort requirement.
	A second example is in the transportation area.  Title 20-A, §15681-A, sub-§3 requires that school administrative units receive no less than 90% of the most recent year's reported net transportation expenditures.  A smaller composition of school administrative units (1,000 students vs. 1,200 students) may result in less savings being achieved, resulting in a higher level of funding to meet the statutory requirement.