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ME LD1518
ME LD1518An Act to Clarify the Amount and Use of Unallocated Balances in a School Administrative Unit Budget
summary
Introduced
04/08/2025
04/08/2025
In Committee
04/08/2025
04/08/2025
Crossed Over
Passed
Dead
05/21/2025
05/21/2025
Introduced Session
132nd Legislature
Bill Summary
This bill amends the laws governing unexpended balances and unallocated general operating fund balances of school administrative units in the following ways. 1. It changes the current requirement that the unexpended balance of all money raised by a school administrative unit received for school purposes be carried forward and credited to the unit for educational programs in the ensuing year, to instead require that the unexpended balance be carried forward and spent by the unit in the ensuing year. 2. It changes the current requirement that unallocated general operating fund balances in excess of 5% of the previous fiscal year's school budget be used to reduce the state and local share of the total allocation for the purpose of computing state subsidy, to instead require that the unallocated balances in excess of 5% be used to fund educational programs. It authorizes school boards to carry forward unallocated balances in excess of 5% of the previous year's school budget and spend those funds for educational programs in the next year or over a period not to exceed 3 years. 3. It strikes language that applies only to fiscal years 2021-22, 2022-23, 2023-24 and 2024-25.
AI Summary
This bill modifies how school administrative units in Maine handle unexpended and unallocated financial balances. It changes the language from "shall" to "must" regarding the carrying forward of unspent funds, and explicitly requires that unexpended money from various sources (including state aid, federal funds, tuition payments, and other receipts) be spent by the school unit for educational programs in the following year. The bill also revises how unallocated general operating fund balances exceeding 5% of the previous year's school budget are managed. Instead of using these excess funds to reduce state and local subsidy calculations, schools must now use these funds to directly support educational programs. Additionally, the bill allows school boards to carry forward and spend these excess balances over a period of up to three years, and requires that these unallocated funds be kept separate from other monetary accounts. The legislation removes specific language that previously applied only to fiscal years 2021-22 through 2024-25, making the new provisions more permanent and standardized across school administrative units.
Committee Categories
Education
Sponsors (5)
Last Action
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/21/2025)
bill text
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1518&snum=132 |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1003&item=1&snum=132 |
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