Skip First Level Navigation | Skip All Navigation

Home > Rules & Legislation > Letters from the Commissioner > Administrative Letter 029

Preliminary 2010-11 General Purpose Aid for Local Schools

Administrative Letter No. 29 and the preliminary 2010-11 ED279 subsidy printouts were mailed by U.S. Mail to Superintendents of Schools on February 5, 2009.  The ED279 subsidy printouts are not available electronically however a hard copy should be available from the Superintendent of Schools office.

 

 

ADMINISTRATIVE LETTER:  29
POLICY CODE:  DB
                                                           

TO:                  Superintendents of Schools
FROM:            Susan A. Gendron, Commissioner
DATE:             February 5, 2010
RE:                  Preliminary 2010-11 General Purpose Aid for Local Schools

The enclosed is a preliminary subsidy printout (ED279) for your school administrative unit(s).  These subsidy amounts for the FY 2010-11 are only preliminary and do not represent final action of the 124th Legislature and therefore should be used only as initial guidance for your budget preparations until the Legislature enacts the FY 2010-11 funding level.  This enclosed ED279 subsidy printout(s) is based on the Governor’s proposed budget change package.  I advise you to be conservative in estimating GPA for your 2010-11 budget preparations.  Also, please note that some calculations included in these printouts are estimated and some are dependent upon enactment of statutory changes. 

Answers for many frequently asked questions on the Preliminary General Purpose Aid for Local Schools (GPA) Funding for FY 2010-11 are provided in the “Fact Sheet” that is included with this letter.
Key changes in the ED279 include the following:

  • Mill expectation – the mill expectation is 7.15 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).
  • Adult Education Course counts – the adult education course counts on line 21 are estimated and will be replaced at a later date with actual counts from the EF-M-39A (January to June 2009) and the EF-M-39B (July to December 2009).
  • Un-bonded School Construction projects – 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 estimate.    If you have an un-bonded project, you must estimate the local AND state impact and include these amounts in your budget for FY 2010-11.
  • Insured value factor – the insured value factor on the 2010-11 ED279 will be based on 2008-09 expenditures (MEDMS Financial) but limited to an insured value factor no greater than 5% pursuant to 20-A MRSA  §15683-A.  
  • Minimum special education adjustment – the minimum special education adjustment pursuant to 20-A MRSA Section 15689, subsection 1, as amended by PL 1671 Part E, has been increased from the originally proposed 20% to 30% 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).
  • Minimum state allocation adjustment – the minimum state allocation adjustment pursuant to 20-A MRSA Section 15689, subsection 1, as amended by PL 1671 Part E, has been increased from the originally proposed 2% of the EPS per-pupil rates to 3% of the EPS per-pupil rates 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 been applied for non-conforming units.  The results of these penalties will appear on the ED279 in Section D and/or on Lines 49B, 49C and 49D.
  • Federal ARRA Title XIV Stabilization Funds – amount of subsidy 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   


February 4, 2010

FACT SHEET

ED279 “Computation of Unit Allocation to Fund Public Schools”
For use with PRELIMINARY FY 2010-11 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

2010-11 PRELIMINARY Subsidy Amounts:

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

Note:  The data used for 2010-11 subsidy calculations must have been received in accordance with the due dates established in Administrative Letter #11, dated 9/17/09.

ED279 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, 2009 attending students and the October 1, 2009 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, 2009 and the October 1, 2009 subsidizable students from the MEDMS Student Information System.
  • Page 2 Line 21 Basic Counts:  Adult Education course counts are currently estimated but will be updated from the EF-M-39A for January 2009 through June 2009 and the EF-M-39B for July 2009 through December 2009.
  • 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, 2009 subsidizable students and the October 1, 2009 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, 2009 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, 2009 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, 2009 and the October 1, 2009 subsidizable students from the MEDMS Student Information System.

Note:  April 1, 2009 counts were downloaded from the MEDMS Student Information System as of June 30, 2009 and October 1, 2009 counts were downloaded from the MEDMS Student Information System as of December 14, 2009.

ED279 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 2009-10 MEDMS staff information data for FTE counts as of December 1, 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

$215

$215

Operation & Maintenance of Plant

$986

$1172

Supplies and Equipment

$337

$466

Co-curricular and Extra-curricular

$33

$111

Professional Development

$57

$57

Instructional Leadership Support

$24

$24

ED279 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

$42

$42

Technology Resource

$95

$288

ED279 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 2008-09 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 2010-11 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 2008-09 school year to 2009-10 school year.
  • Line 34, Vocational Education Expenditures:  The Vocational Education Expenditures are based on expenditures reported to the MEDMS Financial System for 2008-09 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 purchase payment 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 2009-10.

ED279 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 ED279 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 2010-11.  Once these projects have been bonded and actual repayment schedules are received by the Department of Education, subsidy will be recalculated to include the 2010-11 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 ED279; however, you must include these amounts in your budget for FY 2010-11.
  • 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 2009-10.
  • Line 44 – Insured Value Factor:  The insured value factor on the 2009-10 ED279 will be based on 2008-09 expenditures (MEDMS Financial) but limited to an insured value factor no greater than 5% pursuant to 20-A MRSA  §15683-A.

ED279 Section D. Local Contribution Calculation – Mill Expectation:

  • State Valuation:  The state valuation for each municipality is the certified state valuation for 2009 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, 2009 and the October 1, 2009 resident students from the MEDMS Student Information System excluding students transferred under a superintendent’s agreement.
  • Non-conforming unit penalties:  The penalties for the 2% increase in the mill expectation and one-half of system administration EPS per-pupil rate will appear in this section for non-conforming units.

ED279 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 30% 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.  A 50% penalty will be applied for non-conforming units.
    • 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.  A 50% penalty has been applied for non-conforming units pursuant to 20-A MRSA Section 15696.
    • Line 49D Minimum Special Education Adjustment for Towns in SADs/CSDs/RSUs/AOSs per 20-A MRSA Section 15689, subsections 1-A and 1-B for 30% of the EPS Special Education Allocation. 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.  A 50% penalty has been applied for non-conforming units pursuant to 20-A MRSA Section 15696.
    • 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 2010-11 pursuant to 20-A MRSA Section 15690, subsection 1, paragraph C.  However, the Governor has proposed a waiver to this requirement for 2010-11 in the supplement budget (LD 1671 Part E).
  • 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 2009-10 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 2010-11 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 2010-11.  School administrative units must meet the federal assurances and reporting requirements in order to receive these funds.

 ED279 Section F. Adjusted Local Contributions by Town (AOSs, RSUs, SADs and CSDs only):
This section appears only if an Alternative Organizational Structure (AOS), Regional School Unit (RSU), School Administrative District (RSU/SAD) or a Community School District (CSD) has adjustments 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.