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Enacted 2009-10 General Purpose Aid for Local Schools

Administrative Letter No. 56 and the enacted ED 279 subsidy printouts were mailed by U.S. Mail to Superintendents of Schools on Monday June 29, 2009. The ED 279 subsidy printouts are not available electronically however a hard copy should be available from the Superintendent of Schools office.

 

 

ADMINISTRATIVE LETTER: 56
POLICY CODE: DB

TO: Superintendents of Schools
FROM: Susan A. Gendron, Commissioner
DATE: June 29, 2009
RE: Enacted 2009-10 General Purpose Aid for Local Schools

The enclosed is a 2009-10 subsidy printout (ED 279) for your school administrative unit(s) based on the 124th Legislature’s enacted funding level pursuant to Public Law 2009 Chapter 213 Part C. These printouts already take into consideration the following legislation:

  • Penalty Reserve (PL 2009 Chapter 213 Part CCCC). The legislation requires the Department of Education to file a report on January 15, 2010 to the Joint Standing Committee on Education and Cultural Affairs and the 124th Legislature will act on the distribution of these funds. However, with the enactment of LD 285 which provides a one year delay of “all” penalties pursuant to 20-A MRSA Section 15696 for non-conforming units, the penalty reserve will consist of no funds to be distributed in 2009-10.
  • One year exemption (PL 2009 Chapter 213 Part KKKK). The school administrative units that voted “yes” to a reorganization plan but whose plan was rejected at referendum by one or more of its partners will be exempt from the non-conforming unit penalties for the 2009-10 funding.
  • Exempt School Administrative Units (PL 2009 Chapter 19). This chaptered law establishes that the school administrative units listed in Chapter 19 be geographically isolated and provides exemptions to these towns similar to those provided coastal islands Title 20-A, chapter 103-A.
  • 2009-10 Transition Adjustment (PL 2009 Resolve 125). Establishes a transition adjustment to minimize the adverse fiscal impact that may be experienced by some municipalities as a result of unique changes in property fiscal capacity.

 

Answers for many frequently asked questions on the Enacted General Purpose Aid for Local Schools (GPA) Funding for FY 2009-10 are provided in the “Fact Sheet” that is included with this letter.
Key factors in the ED 279 include the following:

  • Mill expectation – the mill expectation is 6.37 mills, reflecting the funding level adjusted due to the estimated federal stabilization funding provided under Title XIV, the State Fiscal Stabilization Fund of the American Recovery and Reinvestment Act (ARRA) of 2009 (H.R. 1, P.L. 111-5).
  • Insured value factor – the insured value factor on the 2009-10 ED 279 will be based on 20% of 2007-08 expenditures (MEDMS Financial). For the school year 2009-10, 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.
  • Minimum special education adjustment – the minimum special education adjustment pursuant to 20-A MRSA Section 15689, subsection 1 has been increased from the originally proposed 45% to 50% of the EPS Special Education Allocation due to the estimated federal stabilization funding provided under Title XIV, the State Fiscal Stabilization Fund of the American Recovery and Reinvestment Act of 2009 (H.R. 1, P.L. 111-5).
  • Non-conforming unit penalties – penalties pursuant to 20-A MRSA Section 15696 have not been applied due to due to the recent enactment of LD 285 which delays the penalties for non-conforming units for one year. The penalties for 2009-10 that were applied on the preliminary ED 279s issued with Administrative Letter #45 dated April 13, 2009 will no longer appear on the 2009-10 enacted ED 279 printouts in Section D and/or on Lines 49B, 49C and 49D.
  • Federal ARRA Title XIV Stabilization Funds – the amount of federal funding that is to be paid separately from Title XIV, the State Fiscal Stabilization Fund of the American Recovery and Reinvestment Act of 2009 (H.R. 1, P.L. 111-5) is indicated on Line 59C.

 

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 June 25, 2009

FACT SHEET

ED 279 “Computation of Unit Allocation to Fund Public Schools”
For use with ENACTED FY 2009-10 subsidy amounts

  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

2009-10 ENACTED Subsidy Amounts:

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

Note: The data used for 2009-10 subsidy calculations must have been received in accordance with the due dates established in Administrative Letter #3, dated 7/09/08.

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, 2008 attending students and the October 1, 2008 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, 2008 and the October 1, 2008 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 2008 through June 2008 and the EF-M-39B for July 2008 through December 2008.
  • 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, 2008 subsidizable students and the October 1, 2008 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, 2008 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, 2008 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, 2008 and the October 1, 2008 subsidizable students from the MEDMS Student Information System.

Note: April 1, 2008 counts were downloaded from the MEDMS Student Information System as of May 16, 2008 and October 1, 2008 counts were downloaded from the MEDMS Student Information System as of January 13, 2009.

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 2008-09 MEDMS staff information data for FTE counts as of January 13, 2009. 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

$210

$210

Operation & Maintenance of Plant

$962

$1143

Supplies and Equipment

$329

$455

Co-curricular and Extra-curricular

$32

$108

Professional Development

$56

$56

Instructional Leadership Support

$23

$23

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

$41

$41

Technology Resource

$93

$281

ED 279 Section B. Other Subsidizable Costs:

  • Line 31, Gifted and Talented Expenditures: The Gifted & Talented Allocation is based on expenditures reported to the MEDMS Financial System but not exceeding the approved budget amount for 2007-08 approved gifted and talented programs.
  • Line 32, Special Education – EPS Allocation: The Special Education EPS allocation is 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 are available later in the 2009-10 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 reported to the MEDMS Financial System (excluding Gifted & Talented) and the MEDMS web-based EF-S-07 report less MaineCare revenues reported to the MEDMS Financial System, and has been adjusted for changes in students from 2007-08 school year to 2008-09 school year.
  • Line 34, Vocational Education Expenditures: The Vocational Education Expenditures are based on expenditures reported to the MEDMS Financial System for 2007-08 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 2008-09.

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 2009-10. Once these projects have been bonded and actual repayment schedules are received by the Department of Education, subsidy will be recalculated to include the 2009-10 subsidizable payments.
    • Local only debt service: The 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 2009-10.
  • 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 2008-09.
  • Line 44 – Insured Value Factor: The insured value factor on the 2009-10 ED 279 will be based on 20% of 2007-08 expenditures (MEDMS Financial System). For the school year 2009-10, 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.

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

  • State Valuation: The State valuation for each municipality is the certified State valuation for 2008 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, 2008 and the October 1, 2008 resident students from the MEDMS Student Information System excluding students transferred under a superintendent’s agreement.
  • Non-conforming unit penalties: Due to the recent enactment of LD 285, the penalties for the 2% increase in the mill expectation and one-half of system administration will no longer appear in this section for non-conforming units for 2009-10.

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. Due to the recent enactment of LD 285, a 50% penalty will not be applied for non-conforming units for 2009-10.
    • 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. Due to the recent enactment of LD 285, a 50% penalty has not been applied for non-conforming units for 2009-10.
    • 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. Due to the recent enactment of LD 285, a 50% penalty has not been applied for non-conforming units for 2009-10.
    • Line 49E Adjustment for Debt Service per 20-A MRSA Section 15689, subsection 2. For eligible school administrative units in Regional School Units or Alternative Organizational Structures, this adjustment will reduce the local contribution and increase the State contribution.
  • 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, 49D and/or 49E.
  • Lines 51 and 52 – Plus or Less Audit Adjustments: The subsidy amount has been adjusted for those units with existing audit adjustments as of the date of this printout.
  • Line 53 – Less 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 2009-10 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 – Less 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 2008-09 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 – Plus Long-Term Drug Treatment Centers Adjustment: The subsidy amount hasbeen 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 – Adjustment for Emergency Bus Replacement: This line should be zero. The final payment occurred in 2008-09.
  • 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 2009-10 Staff Information System data is available and has been verified.
  • Line 59B – Regionalization and Efficiency Assistance: At this time, the subsidy amount has NOT been adjusted for any regionalization and efficiency assistance.
  • Line 59C – Less Amount to be Paid by Federal ARRA Title XIV Stabilization Funds: This amount represents the estimated ARRA Title XIV Stabilization Funds that will be paid separately to school administrative units for 2009-10. School administrative units must meet the federal assurance and reporting requirements in order to receive these funds.

 

ED 279 Section F. Adjusted Local Contributions by Town:
This section appears only if a school administrative unit has adjustments that change the required local contribution amount for the school administrative unit. Adjustments such as those AOSs, RSUs, SADs, and CSDs have on lines 49A, 49B, 49C, 49D and/or 49E. 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.