Estimated Preliminary Subsidies for FY 2012
INFORMATIONAL LETTER: 103
POLICY CODE: DB
TO: Superintendents of Schools
FROM: Susan A. Gendron, Commissioner
DATE: April 1, 2010
SUBJECT: Estimated Preliminary Subsidies for FY 2012
At the request of superintendents looking to plan for future years, we have prepared a spreadsheet showing estimated preliminary subsidy amounts by school administrative unit for FY 2011-12.
As explained below, there are a number of variables that we cannot predict for next year and so we have used certain assumptions in preparing these estimates, and they are outlined further below. In particular, we do not know what enrollment figures will be for FY 2012 and we cannot know what the state revenue climate will be or what amount the Governor and Legislature will choose to allocate to General Purpose Aid to Local Schools.
THEREFORE, I URGE YOU TO USE THESE ESTIMATES WITH GREAT CAUTION.
However, used properly and carefully, these estimates can help you to develop a picture of the state subsidy outlook for your SAU and to use that information in making longer-term plans.
In order to help you understand these very preliminary estimates and to use them effectively, Jim Rier will be hosting a webinar for superintendents and business managers on Monday, April 5, at 1 p.m. Instructions on participating in the webinar can be found at:
The webinar can host up to 100 people. If you attempt to participate but are unable to, please let Jim Rier know and we will schedule a follow-up webinar.
It would be helpful for you to have copies of your FY 2008-09, FY 2009-10 (dated 6-22-09) and latest FY 2010-11 ED-279s in hand during the webinar as Jim will provide guidance on how to use them in conjunction with the Estimated Preliminary Subsidies for FY 2011-12.
It is vitally important that you read and understand the assumptions used in preparing these very preliminary estimates, as you may need to adjust these assumptions based on your own knowledge of the facts in your SAU. In addition, it is important that you use these as general guidance, and do not make specific plans based on these estimates which are likely to change as time progresses.
Assumptions made for the FY 2011-2012 preliminary estimates:
Essential Programs and Services (EPS) Total Allocation
- Operating allocation is frozen at the FY 2010-11 amount.
In order to look at how appropriate this frozen allocation will be, each unit may want to look at its recent history of operating allocation amounts. Generally, if a unit has relatively stable student populations, both regular and specialized, the frozen amount will be reasonably accurate for this projection. However, significant declines (lower allocations) or increases (higher allocations) can skew the accuracy of this estimated allocation.
- Other Subsidizable Costs are frozen at FY 2010-11 amounts. You will need to look at history here, as well, if you chose to fine-tune this category.
- The two components of Gifted and Talented and Vocational (CTE) Allocations are expenditure driven (but limited to approved programs and/or budgets) and more easily estimated based on current year FY 2009-10 projected expenditures.
- The Transportation Allocation is generally predictable based on historic amounts and bus allocations are based on approved purchases for this year FY 2009-10.
- Predicting the Special Education Allocation will be the most challenging. History will be a predictor but in small units the allocation can vary dramatically from year to year. If your special education population is declining, it is more likely that your allocation will decline.
- Debt Service allocation has been set to reflect FY 2011-12 debt scheduled payments – the actual amounts that will be used for the FY 2011-12 calculations. Debt Allocation for major capital construction projects that have not bonded yet have not been reflected but funds have been reserved for those projects that are projected to bond and have scheduled debt payments in FY 2011-12
State and Local Contributions
- The Local Required Share for FY 2011-12 is based on 2010 State Certified Valuations (SCV). These SCVs are the actual values that will be used for the FY 2011-12 calculations.
- The State Share is based on the current projected Base Budget amount for FY 2011-12 for GPA of $877,254,490 – a reduction of $59,879,644 from the current FY 2010-11 total GPA of $937,134,134. This reflects the removal of the following:
- Federal ARRA State Stabilization Funds of $58,759,112, which will no longer available in FY 2011-12, and
- The $1,120,532 one-time appropriation in FY 2010-11 for the waiver of penalties for the 15 units that had voted to reorganize and were not able to comply due to their partners voting “no.” The waiver language is Part VVV of the supplemental budget bill LD 1671.
- The minimum special education subsidy is set at 25%, minimum subsidy non-special education is set at 2%, and minimum subsidy for debt is unchanged.
- Required Local Share mill rate of 7.48 is based on items 1 and 2 above. Reduced mill expectation applicable to conforming units, based on statutory provisions, is 7.42.
- All SAUs that are currently non-conforming, including the 15 units that are receiving waivers for FY 2010-11, are considered non-conforming and subject to the penalties set forth in Title 20-A §15696 for this very preliminary FY 2011-12 estimate.
You can view the spreadsheet showing estimated preliminary subsidy amounts by school administrative unit for FY 2011-12 at:
If you have questions, I strongly encourage you to participate in the webinar scheduled on this topic. You may also contact Jim Rier at Jim.Rier@Maine.gov or 207-624-6794.