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General Purpose Aid for Local Schools (GPA) Funding for FY 2008-09 based on Public Law 2007 Chapter 539, Part C

Administrative Letter No. 35 and the enacted ED 279 subsidy printouts were mailed by U.S. Mail to Superintendents of Schools on Friday April 4, 2008. The ED 279 subsidy printouts are not available electronically however a hard copy should be available from the Superintendent of Schools office.

 

ADMINISTRATIVE LETTER: 35
POLICY CODE: DB

TO:    Superintendents of Schools

FROM:    Susan A. Gendron, Commissioner

DATE:    April 4, 2008

RE:    Enacted General Purpose Aid for Local Schools (GPA) Funding for FY 2008-09 based on Public Law 2007 Chapter 539, Part C

The enclosed is a subsidy printout (ED 279 – new number) for your unit(s). These subsidy amounts for the FY 2008-09 represent final action of the 123rd Legislature and replace all previous FY 2008-09 ED 281 subsidy printouts.

The amounts on the subsidy printouts (ED 279) 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 Public Law 2007, Chapter 539. The State share is based on the level of the funding for 2008-09 of $983,537,536, enacted into law in Chapter 539, Part C. This represents an increase of $5.6 million in State aid to local schools from 2007-08 to 2008-09.

School administrative unit 2008-09 budgets and warrant articles should be submitted to the Department of Education MEDMS Financial System by August 15, 2008. Warrant articles should be based on 20-MRSA Section 15690; please refer to Administrative Letter #27 dated February 15, 2008, “2008-09 Budget Reporting” for procedures in reporting your unit’s 2008-09 budget information – available at the website below:

http://www.maine.gov/education/forms/misteam/efm46/46menu.htm
Key changes in the ED 279 and resulting from Public Law 2007 Chapter 539, Part C include the following:

  • New printout format and number – the ED 279 has replaced the ED 281 format in order to incorporate new features for regional school units. The Debt Allocation column in Section D is solely for regional school units.
  • Mill expectation – the mill expectation is 6.55 mills, reflecting the funding level enacted in Public Law 2007, Chapter 539 and resulting in a State share percentage of 54.01%.
  • EPS transition percentage – the EPS transition percentage for operating allocation has been established at 97% for 2008-09.
  • Limited English proficient (LEP) weights – the limited English proficient (LEP) weights have been established as follows:
    • .70 for units with 15 or less LEP students
    • .50 for units with greater than 15 but less than 251 LEP students
    • .525 for units with 251 or greater LEP students
  • Insured value factor – the insured value factor on the 2008-09 ED 279 will be based on 20% of 2006-07 expenditures (EF-M-45 data filed by 12/15/07). For the school year 2008-09, the insured value factor pursuant to 20-A MRSA Section 5806, subsection 2 for students attending private schools will be limited to 5% of the tuition rate. This is a one-year reduction in the insured value factor.
  • Minimum special education adjustment – the minimum special education adjustment pursuant to 20-A MRSA Section 15689 subsection 1 has been reduced to 50% of the EPS Special Education Allocation.
  • Reporting requirements, subsidy payments, and penalty for late reporting – included in Chapter 539, Part C are the following statutory changes regarding late reporting, subsidy payments and penalty for late reporting:
    • 20-A MRSA §15689-B sub§7. Required data; subsidy payments withheld. A school administrative unit shall provide the commissioner with information that the commissioner requests to carry out the purposes of this chapter, according to time schedules that the commissioner establishes. The commissioner may withhold monthly subsidy payments from a school administrative unit when information is not filed in the specified format and with specific content and within the specified time schedules. If the school administrative unit files the information in the specified format, the Department of Education shall include the payment of the withheld subsidy in the next regularly schedule monthly subsidy payment.
    • 20-A MRSA §15689-B sub§7. Penalty for late submission of required data. Notwithstanding any other provision of this Title, the commissioner may implement the following subsidy penalty for a school administrative unit that is not in compliance with subsection 7. If a school administrative unit has not filed the required data pursuant to section 7 within three months of the due date then a penalty equal to 1% of that unit’s monthly subsidy check times the number of months past due.

Answers to many frequently asked questions regarding the enacted General Purpose Aid for Local Schools (GPA) Funding for FY 2008-09 (based on PL 2007 Chapter 539, Part C) are provided in the “Fact Sheet” that is included with this letter.

For additional questions regarding these estimates, please contact Jim Rier, Suzan Beaudoin, Joanne Allen or Karla Miller of the Department of Education’s School Finance and Operations by email to jim.rier@maine.gov , suzan.beaudoin@maine.gov , joanne.allen@maine.gov , or karla.miller@maine.gov


Updated April 04, 2008

FACT SHEET

ED 279 “Computation of Unit Allocation to Fund Public Schools”
For use with ENACTED FY 2008-09 subsidy amounts based on the
Public Law 2007, Chapter 539, Part C

  Please use the following notes to analyze your school unit’s subsidy amount(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). A comparison of valuations and pupils is available at the following website:
http://www.maine.gov/education/data/statevaluation/statevalmenu.htm

2008-09 ENACTED Subsidy Amounts:

The subsidy for your unit(s) is based on the following information:

Note: The data used for 2008-09 subsidy calculations must have been received in accordance with the due dates established in Administrative Letter #6, dated 9/10/07.

ED 279 Student Information:

  • Page 1 Lines 9, 10 and 11: Attending student counts used for the calculation of EPS Per-Pupil Rates are based on the average of the April 1, 2007 attending students and the October 1, 2007 attending students from the MEDMS Student Information System.
  • Page 2 Lines 19 Resident Pupils and 21 Basic Counts: Resident student counts used for the calculation of Operating allocations are based on the average of the April 1, 2007 and the October 1, 2007 subsidizable students from the MEDMS Student Information System.
  • Page 2 Line 21 Basic Counts: Adult Education course counts used for the calculation of Operating allocations are derived from the EF-M-39A for January 2007 through June 2007 and the EF-M-39B for July 2007 through December 2007.
  • Page 2 Line 21 Basic Counts: Equivalent Instruction student counts used for the calculation of Operating allocations are based on the average of the April 1, 2007 subsidizable students and the October 1, 2007 subsidizable students from the MEDMS Student Information System.
  • Page 2 Line 21 Weighted Counts: The percentage of “resident” disadvantaged students is derived from information reported as of October 1, 2007 from the MEDMS Student Information System.
  • Page 2 Line 21 Weighted Counts: The count of limited English proficient students is derived from information reported as of October 1, 2007 from the MEDMS Student Information System.
  • Page 2 Line 21 Targeted Funds: Kindergarten through Grade 2 resident student counts used for the calculation of Operating allocations are based on the average of the April 1, 2007 and the October 1, 2007 subsidizable students from the MEDMS Student Information System.

Note: April 1, 2007 counts were downloaded from the MEDMS Student Information System as of November 4, 2007 and October 1, 2007 counts were downloaded from the MEDMS Student Information System as of December 7, 2007.

ED 279 EPS Per-Pupil Rates:

  • Page 1 Line 13 B. through G.: The EPS Per-Pupil Rates for each school administrative unit have been updated and based on 2007-08 MEDMS staff information data for FTE counts as of December 20, 2007. Each school administrative unit’s EPS Per-Pupil Rates include the following per-pupil amounts not related to staffing, pursuant to 20-A MRSA §15680, in accordance with the amounts determine pursuant to 20-A MRSA Section 15680:

Category

K-8 Per Pupil Amount

9- 12 Per Pupil Amount

System Administration

$204

$204

Operation & Maintenance of Plant

$935

$1111

Supplies and Equipment

$320

$442

Co-curricular and Extra-curricular

$31

$105

Professional Development

$54

$54

Instructional Leadership Support

$22

$22

ED 279 EPS Per-Pupil Rates for Targeted Funds:

  • Page 2 Line 21 Targeted Funds: Targeted EPS Per-Pupil Rates not related to staffing, pursuant to 20-A MRSA §15680, are listed separately on the subsidy printouts. The amounts determine pursuant to 20-A MRSA Section 15680 are as follows:

Category

K-8 Per Pupil Amount

9- 12 Per Pupil Amount

Standards Based Implementation

$40

$40

Technology Resource

$90

$273**

*An additional funds per student will be provided by the State Department of Education for the standards based implementation.
**Includes $176 per student for one-to-one high school technology for two grades.

ED 279 Section B. Other Subsidizable Costs:

  • Line 31: The Gifted & Talented Allocation is based on expenditures from the EF-S-02 report but not exceeding the approved budget amount for 2006-07 approved gifted and talented programs.
  • Line 32, Special Education – EPS Allocation: The Special Education EPS allocation based on 20-A MRSA Section 15681-A,subsection 2, and 2-A. This allocation includes an estimated amount for the High Cost Out-of-District placement adjustments. These estimates will be replaced with actual amounts when the data is available later in the 2008-09 fiscal year from the EF-S-214 report. For those units that are eligible for a “maintenance of effort” adjustment, the amount that the EPS Allocation is compared to is based on the State & Local expenditures report on your units EF-S-02 report (excluding Gifted & Talented) and EF-S-07 report less MaineCare revenues and has been adjusted for changes in students from 2006-07 school year to 2007-08 school year.
  • Line 34: Vocational Education Expenditures – The Vocational Education Expenditures is based on expenditures from the EF-M-45 report for 2006-07 for approved CTE programs.
  • Line 35, Transportation – EPS Allocation: The Transportation EPS allocation based on 20-A MRSA Section 15681-A, subsections 3 and 3-A.
  • Line 36: Bus Purchases: Approved bus purchases amounts are in accordance with approvals by the Department of Education’s School Transportation Specialist and are based on the new State bus contract and are available on the following website: http://www.maine.gov/education/const/pt005.htm Subsidies for approved bus purchases may change following a review of the unit's reported actual end-of-year expenditures in the MEDMS Financial System for FY 2007-08.

ED 279 Section C. Debt Service Allocations:

  • Line 41: Principal and Interest: Includes the principal and interest payments or portion of principal and interest payments for school construction projects that have already been bonded and that have been approved for State participation.
    • School Construction projects approved for State participation that have not been bonded: The principal and interest amounts for un-bonded school construction projects are NOT included in this ED 279 printout. If you have an un-bonded project, you must estimate the local AND state impact and include these amounts in your budget for FY 2008-09. Once these projects have been bonded and actual repayment schedules are received by the Department of Education, subsidy will be recalculated to include the 2008-09 subsidizable payments.
    • Local only debt service – principal and interest payments or portion of principal and interest payments that are solely the responsibility of the local school administrative unit are not eligible to be included in the ED 279 however, you must include these amounts in your budget for FY 2008-09.
  • Lines 43 & 43A – Lease and Lease Purchase of Space: Approved lease-purchases and approved leases are in accordance with approvals by the Department of Education School Facilities staff and are available on the following website: http://www.maine.gov/education/const/lease.htm Subsidies for approved lease-purchases and for approved leases may change following a review of the unit's reported actual end-of-year expenditures in the MEDMS Financial System for FY 2007-08.
  • Line 44 – Insured Value Factor: The insured value factor on the 2008-09 ED 281 will be based on 20% of 2006-07 expenditures (EF-M-45 data filed by 12/15/07). For the school year 2008-09, the insured value factor pursuant to 20-A MRSA Section 5806, subsection 2 for students attending private schools will be limited to 5% of the tuition rate. This is a one-year reduction in the insured value factor.

ED 279 Section D. Local Contribution Calculation – Mill Expectation:

  • State Valuation: The State valuation for each municipality is the certified State valuation for 2007 from Maine Revenue Services.
  • Average Calendar Year Resident Pupils – SADs and CSDs only: Resident student counts used for the calculation of the average calendar resident pupils are based on the average of the April 1, 2007 and the October 1, 2007 resident students from the MEDMS Student Information System excluding students transferred under a superintendent’s agreement.

ED 279 Section E. Totals and Adjustments:

  • Line 49 – Total Allocation, Local and State Contribution: Indicates the Total Allocation and the Local and State Contributions prior to any adjustments.
  • Lines 49A, 49B, 49C, or 49D: These lines will only print if a school administrative unit is eligible for any of the following adjustments:
    • Line 49A Adjustment for Debt Service per 20-A MRSA Section 15689, subsection 2. For eligible school administrative units, this adjustment will reduce the local contribution and increase the State contribution.
    • Line 49B Adjustment for 50% of EPS Special Education Allocation per 20-A MRSA Section 15689, subsection 1. For eligible school administrative units, this adjustment will reduce the local contribution and increase the State contribution.
    • Line 49C Minimum State Allocation Adjustment per 20-A MRSA Section 15689, subsection 1. For eligible school administrative units, this adjustment will reduce the local contribution and increase the State contribution.
    • Line 49D Minimum State Allocation Adjustment for Towns in SAD/CSD per 20-A MRSA Section 15689, subsection 1. For eligible school administrative units, this adjustment will reduce the local contribution and increase the State contribution. The reduction to the local contribution must be applied to the eligible municipality.
  • Line 50 – Adjusted Allocation, Local and State Contribution: Indicates the Total Allocation and the Local and State Contributions after any adjustments on lines 49A, 49B, 49C and/or 49D.
  • Lines 51 and 52 – Audit Adjustments: The subsidy amount has been adjusted for those units with existing audit adjustments.
  • Line 53 – Adjustment for Un-appropriated Required Local Contributions: A school administrative unit's subsidy may be reduced, as a result of not raising the full amount of the required local contribution of the cost for funding public education from kindergarten to grade 12 for FY 2008-09 pursuant to 20-A MRSA Section 15690, subsection 1, paragraph C. However, school administrative units purchasing supplies using an electronic bidding forum may request a waiver from the Commissioner pursuant to 20-A MRSA Section 15690, subsection 1, paragraph C.
  • Line 54 – Adjustment for Unallocated Ending Balances in Excess of 3%: A school administrative unit's subsidy may be reduced, as a result of having an unallocated ending balance exceeding 3% of the FY 2007-08 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 pursuant to 20-A MRSA Section 15689-B, subsection 6.
  • Line 55 – Long-Term Drug Treatment Centers Adjustment: The subsidy amount has been adjusted for eligible units that provide educational programs to students in Long-Term Drug Treatment Centers pursuant to 20-A MRSA Chapter 327.
  • Line 56 – Emergency Bus Replacement Loan: The subsidy amount has been adjusted for the annual payments for those units that purchased Carpenter replacement buses. 2008-09 is the fifth year of the five-year repayment schedule; 2008-09 will be the final repayment year.
  • Line 59A – Minimum Teacher Salary Adjustments: At this time, the subsidy amount has NOT been adjusted for the annual payments for those units for eligible staff with salaries below $30,000. These amounts will be included once the 2008-09 Staff Information System data is available and has been verified.

ED 279 Section F. Adjusted Local Contributions by Town (SADs and CSDs only):
This section appears only if a school administrative district or a community school district has adjustments on lines 49A, 49B, 49C and/or 49D. This section provides an adjustment of the local contributions by municipality required for the unit’s warrant article pursuant to 20-A MRSA Section 15690, subsection 1, paragraph B.