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ADMINISTRATIVE LETTER: 28
POLICY CODE: DB
TO: Superintendents of Schools
FROM: Susan A. Gendron, Commissioner
DATE: April 21, 2006
RE: Enacted General Purpose Aid for Local Schools (GPA) Funding for FY 2006-07
The enclosed subsidy printout (ED 281) for your unit(s) is based on the Chapter 519 enacted budget and includes the following proposed items that may require legislative action:
New Elementary Small Isolated School Adjustment – as presented to the Education & Cultural Affairs Committee in February 2006.
Amended EPS Transportation Model – as presented to the Education & Cultural Affairs Committee in February 2006.
Transition Adjustment – pursuant to 20-A MRSA Section 15686 - line 58E
Tier 1 Transition Adjustment – pursuant to Chapter 519, Part AAAA-11 – line 58E.
Tier 2 Transition Adjustment pursuant to Chapter 519, Part AAAA-11 – line 58F.
Transition Adjustment for eligible school administrative districts and community school districts with significant increases in property valuations – line 58F.
Transition Adjustment for eligible school administrative districts and community school districts for special education costs for minimum State allocation receivers – line 58F.
The amounts on the subsidy printouts (ED 281) are based on the Essential Programs and Services Model and the Mill Expectation Formula pursuant to 20-A MRSA Chapter 606-B as amended by Chapter 519. The State share is based on the level of the funding for 2006-07, $914,098,222, enacted into law in Chapter 519, Part J.
The Minimum Teacher Salary Adjustment on line 59 has been removed pending the Legislature’s consideration of L.D. 1381.
School administrative unit 2006-07 budgets and warrant articles should be based on 20-MRSA Section 15690.
A summary of the education funding highlights is provided below:
The proposed General Purpose Aid for Education (GPA) for FY 2006-07 is $914,098,222 – this represents an additional appropriation of $41,295,278.
The EPS Allocations include the total of Operating Allocation, Other Subsidizable Costs, and Debt Service Costs defined as follows:
Operating Allocations include weighted amounts for disadvantaged students; weighted amounts for limited English proficient students; targeted funds for assessment, technology, and kindergarten through grade two; and adjustments for isolated small schools including the new proposed elementary isolated small schools adjustment.
Other Subsidizable Costs include allocations for approved gifted and talented programs; EPS special education allocation; approved vocational educational programs; EPS transportation operating allocation based on the new proposed amendments; and approved bus purchases in accordance with Administrative Letter #20, dated January 17, 2006 and legislation enacted in Chapter 519.
Debt Service Costs include principal and interest payments for school construction bonds or portion of bonds that are approved for subsidy; approved leases and lease-purchases; and insured value factor expenditures.
The State Share includes adjustments for debt service, per 20-A MRSA Section 15689, 84% special education based on the EPS special education model, and minimum State allocation. The “Fact Sheet” included with this letter includes estimated subsidy and data that has been updated and corrected.
For questions regarding estimates, please contact Jim Rier, Suzan Cameron or Joanne Allen of the Management Information Systems Team by email to jim.rier@maine.gov , suzan.cameron@maine.gov or joanne.allen@maine.gov
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FACT SHEET
For use with ENACTED FY 2006-07 subsidy amounts
Please use the following notes to analyze your school unit’s subsidy estimate(s):
Please, keep in mind the power of the variables of State valuation, student enrollment, and the overall amount of GPA recommended. For your unit(s), subsidy is largely determined by these trends. In general, if a unit’s pupil count decreases from one year to the next, then its GPA amount will decline (assuming all other factors remain unchanged). Current statute, which provides for averaging pupil counts over six (6) census points if there is a decline in the number of pupils, will help soften this impact. Similarly, if a unit’s State valuation amount increases from one year to the next, then its GPA State share amount will also decline (again assuming all other factors remain unchanged).
2006-07 Estimate Subsidy Printout (ED281) Amounts:
The enclosed subsidy printout (ED 281) for your unit(s) is based on the Governor’s proposed budget and includes the following proposed items that may require legislative action:
New Elementary Small Isolated School Adjustment – as presented to the Education & Cultural Affairs Committee in February 2006.
Amended EPS Transportation Model – as presented to the Education & Cultural Affairs Committee in February 2006.
Transition Adjustment – pursuant to 20-A MRSA Section 15686 - line 58E
Tier 1 Transition Adjustment – pursuant to Chapter 519, Part AAAA-11 – line 58E.
Tier 2 Transition Adjustment pursuant to Chapter 519, Part AAAA-11 – line 58F.
Transition Adjustment for eligible school administrative districts and community school districts with significant increases in property valuations – line 58F.
Transition Adjustment for eligible school administrative districts and community school districts for special education costs for minimum State allocation receivers – line 58F.
The following additional points should be noted:
The EPS Per-Pupil Rates for each school administrative unit have been updated and based on 2005-06 MEDMS staff information data as of January 24, 2006. Each school administrative unit’s EPS Per-Pupil Rates include the following per-pupil amounts not related to staffing, pursuant to 20-A M.R.S.A. §15680, in accordance with the amounts determined pursuant to 20-A MRSA Section 15680:
Category |
K-8 Per Pupil Amount |
9- 12 Per Pupil Amount |
System Administration |
$349 |
$346 |
Operation & Maintenance of Plant |
$929 |
$1104 |
Supplies and Equipment |
$302 |
$418 |
Co-curricular and Extra-curricular |
$29 |
$99 |
Professional Development |
$51 |
$51 |
Instructional Leadership Support |
$20 |
$20 |
Targeted EPS Per-Pupil Rates not related to staffing, pursuant to 20-A M.R.S.A. §15680, are listed separately on the subsidy printouts. The amounts determined pursuant to 20-A MRSA Section 15680 are as follows:
Category |
K-8 Per Pupil Amount |
9- 12 Per Pupil Amount |
Student Assessment |
$79 |
$79 |
Technology Resource |
$85 |
$258 |
The Special Education EPS allocation includes estimated amounts for the High Cost Out-of-District placement adjustments. These estimates will be replaced with actual amounts when the data is available late in the 2006-07 fiscal year.
Adult Education course counts, per 20-A MRSA, Section 8605(2), are actual counts, based on course counts submitted for the previous year – Report of Adult Education for Subsidy Purposes, January 1, to June 30, 2005 (EF-M-39A) and July 1 to December 31, 2005 (EF-M-39B).
Approved bus purchase amounts are in accordance with the method described in Administrative Letter #20, dated January 17, 2006 and legislation enacted in Chapter 519. Subsidies for approved bus purchases may change following receipt of the unit's end-of-year financial report (EF-M-45) for FY 2005-06.
Subsidies for approved bus lease-purchases and for approved leases may change following receipt of the unit's end-of-year financial report (EF-M-45) for FY 2005-06.
NO ESTIMATES of the principal and interest amounts for unbonded school construction projects are included in this estimate. Exact amounts will be added to a revised estimate for your unit when actual repayment schedules are received. If you have an unbonded project, you must estimate the local AND State impact and include these amounts in your budget for FY 2006-07.
A school administrative unit's subsidy may be reduced, as a result of: (a) not raising the full amount of the required local contribution of the cost for funding public education from kindergarten to grade 12 for FY 2006-07; or (b) having an unallocated ending balance exceeding 3% of the FY 2005-06 budget that the local school board has not agreed to disburse in the next fiscal year or over a period not to exceed 3 years.
The subsidy amount has been adjusted for the annual payments for those units that purchased Carpenter replacement buses.
At this time, the subsidy amount has NOT been adjusted for the annual payments for those units which are participating in the high school laptop program that began in 2004-05. These amounts will be included at a later date.
The subsidy amount has been adjusted for the Long-Term Drug Treatment adjustment for those eligible units.