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Update 02/22/2013...pg

PRELIMINARY FY 2013-14 FUNDING (Estimate)

February 22, 2013

These subsidy amounts for FY 2013-14 are only preliminary and do not represent final action of the 126th Legislature and therefore should only be used as “initial” guidance for your budget preparations.  Some calculations included in these amounts are dependent on enactment of statutory changes. 

The spreadsheet indicates the estimated local and State share.  This document provides unit-by-unit amounts including a comparison to FY 2012-13 funding including the FY 13 curtailment.

Please note that the subsidy amounts do not include the additional $9 million in the proposed biennial budget targeted to supporting activities such as implementation of the proficiency-based diploma. Nearly all of these funds will be distributed to school districts, though the exact mechanism will vary and has not been finalized. These include: Adult Education College Readiness programs ($550k), transition to the proficiency-based diploma - LD 1422/PL2011 Ch. 669 ($2m), implementation of educator evaluation systems - LD 1858/PL 2011 Ch. 635 ($2.5m), replication of Bridge Year program ($1m), CTE national industry certification support ($1.5m), and School Improvement and Support ($1.5m).

 

Key factors and changes to this year's subsidy calculations include the following:

  • Mill expectation – the mill expectation is 8.11 mills.
  • The Normal Cost of Teacher Retirement - (2.65% of salary for eligible employees) is included in the EPS Total Allocation (a total of $28.9 million for all units) and an additional $14.5 million has been included in the State share. Read more about the retirement provision included in the biennial budget.
  • Adult Education course counts – the adult education course counts are estimated and will be replaced at a later date with actual counts from the EF-M-39A (January to June 2012) and the EF-M-39B (July to December 2012).
  • Minimum special education adjustment – the minimum special education adjustment pursuant to 20-A MRSA Section 15689, subsection 1, as amended, is 25% of the EPS Special Education Allocation.
  • Minimum state allocation adjustment – the minimum state allocation adjustment pursuant to 20-A MRSA Section 15689, subsection 1, as amended, is 2% of the EPS per-pupil rates.
  • Miscellaneous adjustments – miscellaneous adjustments such as audit adjustments and educating students in long-term drug treatment centers adjustments are NOT included in these estimates.
  • 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 2013-14 pursuant to 20-A MRSA Section 15690, subsection 1, paragraph C.  However, proposed legislation will be submitted to change the repeal date for 20-A MRSA Section 15690, subsection 1, paragraph D to June 30, 2014.  Under this proposed revision a unit’s state subsidy will not be reduced for 2013-14, if the school administrative unit raises at least 82.10% (preliminary percentage) of the required local contribution.  The 82.10% represents the percentage that the proposed state share percent of 45.16% falls below the state’s target of 55% (proposed 45.16% / 55% = 82.10%).

You can view the spreadsheet showing estimated preliminary subsidy amounts by school administrative unit for FY 2013-14 by clicking the link below:

Explanation of columns on spreadsheet:

  1. EPS Total Allocation at 100% - the 100% total essential programs and services allocation.
  2. EPS Total Allocation at 97% - the 100% total essential programs and services allocation with the operating allocation reduced by the 97% transition percentage.
  3. Adjusted Required Local Share - the required amount of the local contribution (local raised) of the EPS Total Allocation at 97%.
  4. Local Share Mill Rate, represents the mill rate based on adjusted required local share for the school administrative unit divided by 1/1000th of the State valuation of the school administrative unit.
  5. Adjusted State Share - the State allocation amount equal to the EPS Total Allocation at 97% less the Adjusted Required Local Share.
  6. 2012-13 Adjusted State Share (includes $12.58m curtailment) - the State share for the current year after the curtailment has been implemented.
  7. 2012-13 Est. to 2013-14 Est. - the difference from the preliminary 2013-14 State share and the 2012-13 State share with curtailment.
  8. 2012-13 Total State & Local Approved Spending - the total State and local funds (excluding local only debt service) as approved through the local budget process for 2012-13.
  9. Percent Gain or (Loss) of Total State & Local Approved Spending - the gain or loss of State share from 2012-13 to 2013-14 as a percentage of total State and Local funds in 2012-13.
  10. Percentage Change for State Valuations - the percentage change in fiscal capacity from 2011 State valuation to the 2012 State valuation.
  11. Percentage Change for Calendar Year Average Pupils - the percentage change in number of students from the 2011 average subsidizable students to the 2012 average subsidizable students.
  12. Amount Change in Debt Service 2012-13 to 2013-14 - the increase or decrease in state approved debt service obligations - includes principal & interest payments on school construction projects, leases, lease-purchases and insured value factor (IVF).
  13. Project FY 14 Calculated Normal Cost Teacher Retirement - stimated 2013-14 cost of teacher retirement for staff at school administrative units - based on estimated eligible teacher salaries for 2013-14 times 2.65%.
  14. Net New Costs - the sum of the amount change in debt service and the projected FY 14 calculated normal cost teacher retirement.
  15. Net Change including Net New Costs - the gain or loss of funds after including changes in debt services and adding in the teacher retirement obligation.

Preliminary 2013-14 Subsidy Amounts by School Administrative Unit - pdf version

Preliminary 2013-14 Subsidy Amounts by School Administrative Unit - Excel version

Dated February 22, 2013

For additional questions regarding these estimates please contact:

Jim Rier, Suzan Beaudoin,

Joanne Allen or Paula Gravelle

Department of Education
School Finance and Operations
23 State House Station, Augusta, ME 04333
Phone: (207) 624-6790
Fax: (207) 624-6791

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