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TO:                  Superintendents of Schools


FROM:            Susan A. Gendron, Commissioner


DATE:             May 4, 2004


RE:                   GENERAL PURPOSE AID (GPA) FUNDING FOR FY 2004-05



This letter is to inform you that the Legislature has enacted the budget for FY 2004-2005, and Governor Baldacci has signed the bill into law. 

A summary of the education funding highlights is provided below:

General Purpose Aid for Education (GPA).  The enacted GPA appropriation for FY 2004-05 is $740,378,576 representing a $15 million increase over the initial FY 2004-05 appropriation of $725,410,576.

The FY 2005 appropriations for GPA are broken out as follows:



Foundation Allocation (Operating Costs, Program Costs, and Minimum Subsidy)



Debt Service







Specific highlights of the General Purpose Aid portion of education funding include:


·        For FY 2005, the Per-pupil Guarantee is $4,816. 

·        In FY 2005, the reduction percentage for Program Costs will be -2.99%

The enclosed ED261 subsidy printout(s) reflects what the Legislature has enacted into law and should be used in your budget calculations.  Please note that this printout is labeled “Enacted: 4/29/2004”, to distinguish it from other preliminary printouts provided to you earlier this year.

For the ED261 printout for each school unit, the following points should be noted.

·        Subsidies for approved bus purchases and for approved leases may change following receipt of the unit's EF-M-45 for FY 2003-2004.

·        NO ESTIMATES of the principal and interest amounts for unbonded school construction projects are included in this printout. Exact amounts will be added to a revised printout for your unit when actual repayment schedules are received.

·        The estimated subsidy reduction amounts for the Bureau of Indian Affairs school units will be replaced with final amounts, when available.

·        A school administrative unit's subsidy may be reduced, as a result of not raising the full amount of the required local share of the Foundation Allocation.

·        Special Education amounts on lines 32, 33A, and 33B have been reduced by the Out-of-District placement adjustments received in June 2003.

For questions regarding the ED261 printout, please contact Suzan Cameron or Joanne Allen of General Purpose Aid Support Services by email to or or call at (207) 624-6790.