LD 1131 LR 1201(01)
An Act To Create Education Savings Accounts for Maine Students
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Hanley of Pittston
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Reduction in state subsidy - local school administrative units
FY 2017-18 FY 2018-19 Projections  FY 2019-20 Projections  FY 2020-21
Net Cost (Savings)
General Fund $107,825 $57,735 $59,360 $61,033
General Fund $107,825 $57,735 $59,360 $61,033
Fiscal Detail and Notes
The General Purpose Aid for Local Schools program within the Department of Education will require a one-time General Fund appropriation of $51,666 in fiscal year 2017-18 for the cost of making necessary changes to its essential programs and services system in order to implement the requirements of this legislation.
This bill requires the Department of Education to deposit 90% of the state subsidy for each child approved for an education savings account that would otherwise be paid to the child's local school administrative unit (SAU) into a savings account established for that child.  This bill also requires the SAU of the child approved for the education savings account to deposit 90% of its required local contribution attributable to that child into the child's education savings account.  The impact to individual SAU's affected by this requirement will depend on the number of students in each SAU that participate in the program each year.
The State Treasurer will also require General Fund appropriations of $56,159 in fiscal year 2017-18 and $57,735 in fiscal year 2018-19 for one Management Analyst I position and related costs to establish and administer education savings accounts.