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Amend the amendment by striking out all of Part XXXX and inserting the following:
PART XXXX
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Sec. XXXX-1. 20-A MRSA §15680, sub-§1, ¶A,  as enacted by PL 2003, c. 504, Pt. A, §6, is amended to read:
 
A. System administration. The per-pupil amount for "system administration" is the actual system administration expenditures, as defined in the State's accounting handbook for local school systems, for the most recent year available excluding expenditures for leases and the purchase of land and buildings, less revenues to system administration for services to other governments and refunds from a statewide school management association, divided by the average October and April enrollment counts for that fiscal year and then inflated to an estimated allocation year level by a 10-year average increase in the Consumer Price Index or other comparable index. Beginning in school year 2008-2009, this per-pupil amount must be based on school year 2005-2006 system administration expenditures then reduced by 50% and inflated to an estimated allocation year level by a 10-year average increase in the Consumer Price Index or other comparable index;
Sec. XXXX-2. 20-A MRSA §15680, sub-§1, ¶B,  as enacted by PL 2003, c. 504, Pt. A, §6, is amended to read:
 
B. Operation and maintenance of plant. The per-pupil amount for "operation and maintenance of plant" is the actual operation and maintenance of plant expenditures, as defined in the State's accounting handbook for local school systems, for the most recent year available excluding expenditures for leases and the purchase of land and buildings, divided by the average October and April enrollment counts for that fiscal year and then inflated to an estimated allocation year level by a 10-year average increase in the Consumer Price Index or other comparable index. For school year 2008-2009, the resulting per-pupil amount must be reduced by 5%;
Sec. XXXX-3. 20-A MRSA §15681-A, sub-§2-A  is enacted to read:
 
2-A.  Reduction for fiscal year 2008-09.     For fiscal year 2008-09, the commissioner shall reduce by 5% the allocation for special education costs as described in subsection 2. These calculated special education costs for school administrative units for fiscal year 2008-09 are subject to the appeals procedure described in subsection 2.
Sec. XXXX-4. 20-A MRSA §15681-A, sub-§3-A  is enacted to read:
 
3-A.  Reduction for fiscal year 2008-09.     For fiscal year 2008-09, the commissioner shall reduce by 5% the allocation for transportation costs as described in subsection 3. These calculated transportation costs for school administrative units for fiscal year 2008-09 are subject to the appeals procedure described in subsection 3.
Sec. XXXX-5. Stakeholder group. The Department of Education shall convene a stakeholder group to study proposals and strategies to reduce costs and achieve savings, including proposals to consolidate school administrative units. The stakeholder group shall report by January 10, 2010 to the joint standing committee of the Legislature having jurisdiction over education and cultural affairs with its recommendations, including any proposed implementing legislation. Following receipt and review of the report, the joint standing committee may submit legislation to the Second Regular Session of the 124th Legislature.’
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
 
SUMMARY
This amendment retains the part of Committee Amendment "A" that makes decreases in essential programs and services funding. The amendment also requires the Department of Education to establish a stakeholder group to study proposals and strategies to reduce costs and achieve savings, including proposals to consolidate school administrative units and report to the joint standing committee of the Legislature having jurisdiction over education and cultural affairs by January 10, 2010.
 
FISCAL NOTE REQUIRED
(See attached)