LR #: 349101                                                               Education Committee Bill “B”

Sponsor: EDU Cmte Pursuant to Law

Drafted by: PDM

Date:    2/8/2008

File Name:  G:\COMMITTEES\EDU\BILLDRFT\123rd2nd\349101.doc (2/8/2008 3:21 PM)

Title:  An Act To Fully Implement the School Administrative Unit Reorganization Law

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 20-A MRSA §1486, sub-§5 is enacted to read:

5. Exception.  A regional school unit where the school board has approved a budget that proposes to raise an amount that exceeds the maximum state and local spending target determined pursuant to section 15671-A, subsection 5 by less than 5% is exempt from the provisions of this section.

Sec. 2. 20-A MRSA §2307 is amended to read:

§2307.  School budgets; exceptions

            Notwithstanding any other law, municipal school budgets developed after January 1, 2008 must follow the same school budget requirements as regional school units pursuant to chapter 103-A.  Except as described in subsections 1 and 2, a municipal school unit is deemed to be a regional school unit solely for the purpose of developing a budget pursuant to chapter 103-A.

1. Municipal charter; exception.  A municipal school unit where the responsibility for the formation and approval of the school budget is vested in the municipal council or other municipal legislative body by municipal charter is exempt from the provisions of this section.

2. Additional exception.  A municipal school unit where the school committee has approved a budget that proposes to raise an amount that exceeds the maximum state and local spending target determined pursuant to section 15671-A, subsection 5 by less than 5% is exempt from the provisions of this section.

Sec. 3.  20-A MRSA §15671-A, sub-§2, ¶B is amended to read:

B. For property tax years beginning on or after April 1, 2005, the commissioner shall calculate the full-value education mill rate that is required to raise the statewide total local share. The full-value education mill rate is calculated for each fiscal year by dividing the applicable statewide total local share by the applicable statewide valuation. The full-value education mill rate must decline over the period from fiscal year 2005-06 to fiscal year 2008-09 and may not exceed 9.0 mills in fiscal year 2005-06 and may not exceed 8.0 mills in fiscal year 2008-09. The full-value education mill rate must be applied according to section 15688, subsection 3-A, paragraph A to determine a municipality’s local cost share expectation. Full-value education mill rates must be derived according to the following schedule.

(1) For the 2005 property tax year, the full-value education mill rate is the amount necessary to result in a 47.4% statewide total local share in fiscal year 2005-06.

(2) For the 2006 property tax year, the full-value education mill rate is the amount necessary to result in a 46.14% statewide total local share in fiscal year 2006-07.

(3) For the 2007 property tax year, the full-value education mill rate is the amount necessary to result in a 45.56% statewide total local share in fiscal year 2007-08.

(4) Except as provided in subparagraph (6), for For the 2008 property tax year and subsequent tax years, the full-value education mill rate is the amount necessary to result in a 45.0% statewide total local share in fiscal year 2008-09 and after.

(6) For school administrative units that do not conform to the requirements of chapter 103-A for the 2009 property tax year, the full value education mill rate is the amount necessary to result in a 46.14% statewide total local share in fiscal year 2009-10 and after.

Sec. 4. 20-A MRSA §15696, sub-§ 1 is amended to read:

§ 15696.  Penalties for nonconforming school administrative units

1.  Authorized adjustments.  Notwithstanding any other provision of this Title, the following adjustments to the calculation of subsidy under chapter 606-B are required beginning July 1, 2009 for a school administrative unit that is not a conforming school administrative unit:

A.  The school administrative unit is eligible for only 50% of the minimum state allocation under Title 20-A, section 15689, subsection 1;

B.  The school administrative unit’s total cost of education is reduced by adjusting the cost component for system administration under section 15680, subsection 1, paragraph A by half;

C.  The school administrative unit is not eligible for a transition adjustment under section 15686 or any comparable year-over-year transition amount; and

D.  The school administrative unit receives less favorable consideration for approval and funding for school construction pursuant to rules of the state board. ; and

E.  The school administrative unit’s full-value education mill rate pursuant to section 15671-A is increased by 2% for the purpose of calculating the school administrative unit’s required contribution to meet the local share of education costs established pursuant to section 15688, subsection 3-A.

            Sec. 4. PL 2007, c. 240, Sec. XXXX-36, sub-§2 is amended to read:

2. Notice of intent. By August 31, 2007, each school administrative unit shall file with the Commissioner of Education:

A. A notice of intent to engage in planning and negotiations with other school administrative units for the purpose of developing a reorganization plan to form a regional school unit under this Part and Title 20-A, chapter 103-A; or

B. A notice of intent to submit an alternative plan that meets the requirements of subsection 6, paragraph F. An alternative plan may be submitted only by a unit that is:

(1) An offshore island;

(2) A school operated by a tribal school committee pursuant to the Maine Revised Statutes, Title 30, section 6214;

(3) A school administrative unit that serves more than 2,500 students, or 1,200 students where circumstances justify an exception to the requirement of 2,500 students under subsection 6, paragraph A, where expansion of the unit would be inconsistent with the policies set forth in Title 20-A, section 1451; or

(4) A school administrative unit that is designated as an efficient, high-performing district. For purposes of this subparagraph, a school administrative unit is designated an “efficient, high-performing district” if:

(a) It contains at least 3 schools identified as “higher performing” in the May 2007 Maine Education Policy Research Institute report “The Identification of Higher and Lower Performing Maine Schools”; and

(b) Its reported 2005-2006 per-pupil expenditures for system administration represent less than 4% of its total per-pupil expenditures; or.

C.  A notice of intent to submit an alternative plan that meets the requirements of subsection 6, paragraph F may also be filed by August 31, 2008 by a school administrative unit that is designated as an efficient, high-performing district.  For purposes of this paragraph, a school administrative unit is designated an “efficient, high-performing district” if:

(a) It is a school administrative unit that provides kindergarten to grade 12 public education;

(b) All of the schools contained in the units are identified as “higher performing” in the May 2007 Maine Education Policy Research Institute report “The Identification of Higher and Lower Performing Maine Schools” or if it files a notice of intent by August 31, 2008; and

(c) Its reported 2005-2006 per-pupil expenditures for system administration represent less than 4% of its total per-pupil expenditures.

SUMMARY

            This bill is introduced by the Joint Standing Committee on Education and Cultural Affairs pursuant to Public Law 2007, Chapter 240, Section XXXX-47.  The bill proposes to make the following changes to fully implement the laws governing the formation of regional school units.

1.  It provides an exemption for those regional school units -- where the regional school unit board has approved a budget that proposes to spend less than 5% above the level of funding outlined in the essential programs and services funding model -- from the budget validation referendum process until the regional school unit board proposes a budget that meets or exceeds that funding level.

2.  It provides an exemption for municipal school units from the budget validation referendum process in cases where the municipal charter defines roles and process for developing and approving the school budget.

3.  It provides an exemption for efficient, high-performing school units that provide kindergarten to grade 12 public education where all schools in the school unit qualify as efficient, high-performing schools and meet the requirement that the fiscal year 2005-06 administrative spending for the school unit is less than 4% of its total spending.  It also provides these qualifying school units an extension to file for an alternative plan under this exemption until August 31, 2008.

4.  It replaces the so-called “53.86%” penalty for any school administrative unit that fails to approve a reorganization plan on or before November 4, 2008 and to implement that plan by July 1, 2009 with a penalty that provides that the school administrative unit’s full-value education mill rate pursuant to Maine Revised Statutes, Title 20-A, section 15671-A is increased by 2% for the purpose of calculating the school administrative unit’s required contribution to meet the local share of education costs established pursuant to Maine Revised Statutes, Title 20-A, section 15688, subsection 3-A.