H-717    House amendment "E" to Committee amendment "A"           

Sponsored By: Representative MACDONALD of Boothbay

Summary

This amendment:

1. Incorporates the substance of Senate Amendment "D" to Committee Amendment "A" to S.P. 741, L.D. 1932;

2. Incorporates the substance of Senate Amendment "C" to S.P. 741, L.D. 1932 and allocates it within the proper statutory context; and

3. Corrects 2 errors in which the terms "school administrative unit" and "school union" were erroneously employed.

Fiscal Note      

Potential future biennium cost increase - General Fund    

Fiscal Detail and Notes                                                                       

            Providing school administrative units with the option of forming a regional school union that allows for the dispersion of decision making authority to local education units within the regional school union except for certain core functions may increase the total cost of K-12 public education in future biennia due to less savings being achieved versus what was anticipated in Public Law 2007, chapter 240, Part XXXX.  The amount can not be determined at this time and will depend on the number of regional school unions established and the ability of regional school unions and local education units within the regional school union to implement efficiencies.  Two areas which could impact future General Fund costs include special education and transportation.            

            Title 20-A, §15681-A, sub-§2(D) requires that school administrative units receive sufficient funds for special education to ensure that the SAU's meet the federal maintenance of effort requirement for receiving federal Individuals with Disabilities Act funds.  The maintenance of effort requirement states that the total amount of state and local funds budgeted by the local education agency for expenditures in a current fiscal year for the education of children with disabilities must be at least equal to the total amount of state and local school funds actually expended for the education of children with disabilities in the most recent preceding fiscal year.  Less savings being achieved versus what was anticipated in Public Law 2007, chapter 240, Part XXXX may require a higher level of state and local funding in order to fulfill the maintenance of effort requirement.          

            Title 20-A, §15681-A, sub-§3 requires that school administrative units receive no less than 90% of the most recent year's reported net transportation expenditures.  Less savings being achieved versus what was anticipated in Public Law 2007, chapter 240, Part XXXX may require a higher level of funding in order to meet the statutory requirement.