ADMINISTRATIVE LETTER  # 35

 

POLICY CODE: DB

                                                           

 

TO:                  Superintendents of Schools

 

FROM:            Susan A. Gendron, Commissioner

 

DATE:             May 4, 2004

 

RE:                   GENERAL PURPOSE AID (GPA) FUNDING FOR FY 2004-05

 

 

This letter is to inform you that the Legislature has enacted the budget for FY 2004-2005, and Governor Baldacci has signed the bill into law. 

A summary of the education funding highlights is provided below:

General Purpose Aid for Education (GPA).  The enacted GPA appropriation for FY 2004-05 is $740,378,576 representing a $15 million increase over the initial FY 2004-05 appropriation of $725,410,576.

The FY 2005 appropriations for GPA are broken out as follows:

	Foundation Allocation (Operating Costs, Program Costs, and Minimum Subsidy)	$636,029,337
	Debt Service	$59,045,587
	Adjustments	$45,303,652

 

 

Specific highlights of the General Purpose Aid portion of education funding include:

 

·        For FY 2005, the Per-pupil Guarantee is $4,816. 

·        In FY 2005, the reduction percentage for Program Costs will be -2.99%

The enclosed ED261 subsidy printout(s) reflects what the Legislature has enacted into law and should be used in your budget calculations.  Please note that this printout is labeled “Enacted: 4/29/2004”, to distinguish it from other preliminary printouts provided to you earlier this year.

For the ED261 printout for each school unit, the following points should be noted.

·        Subsidies for approved bus purchases and for approved leases may change following receipt of the unit's EF-M-45 for FY 2003-2004.

·        NO ESTIMATES of the principal and interest amounts for unbonded school construction projects are included in this printout. Exact amounts will be added to a revised printout for your unit when actual repayment schedules are received.

·        The estimated subsidy reduction amounts for the Bureau of Indian Affairs school units will be replaced with final amounts, when available.

·        A school administrative unit's subsidy may be reduced, as a result of not raising the full amount of the required local share of the Foundation Allocation.

·        Special Education amounts on lines 32, 33A, and 33B have been reduced by the Out-of-District placement adjustments received in June 2003.

For questions regarding the ED261 printout, please contact Suzan Cameron or Joanne Allen of General Purpose Aid Support Services by email to suzan.cameron@maine.gov or joanne.allen@maine.gov or call at (207) 624-6790.

 

Attachment