Gains in Funding for Education
The good news is that small gains are being made in funding for education. The sad news is that there are still losses which will severely impact many communities in 2010-11.
Even more problematic, the prospects for funding in 2011-12 are grim because federal American Recovery and Reinvestment Act money will run out.
Thanks to revenues that exceeded gloomy forecasts, more money was found in the state budget for higher education and K-12 schools for next year.
As a result, Governor John Baldacci submitted a change package restoring $28 million in Fiscal Year 2010-11; nearly $8 million for higher education, with full restoration of the proposed cuts to the University of Maine System ($6 million) and to the Community College System ($1.7 million), and a $20 million increase in state aid to K-12 schools.
The $20 million restoration for K-12 schools has varying impacts from north to south. Portland ($1.4 million) and South Portland ($600,000) received 10% of the new money, while rural Maine communities that had increasing valuations and decreasing student populations received little relief from the monies restored to schools.
This chart on funding losses offers a snapshot of impact on rural communities that will be hard hit by declining enrollments and rising property values.
"The Governor's change order is a good first step," says MEA President Chris Galgay, "but we are continuing to press our case for more funding because the long-term impact of these potential cuts on our schools will be devastating."
The other bright spots for school budgets are negative events that were predicted to happen, but did not. Most school financial officers had planned on an 8% to 10% increase in health insurance costs given the spiraling costs of health care. Thanks to the MEA Benefits Trust the actual increase was held to 2%
And, proposed state rules governing Medicare reimbursement for medically necessary services will be delayed. If implemented, they could drain another $20 to 30 million out of state aid.
School Consolidation
On the vexing problem of school consolidation the Education Committee voted in favor of LD 570, that provides more flexibility for non-complying school districts so that they can conform with consolidation guidelines
This bill allows districts smaller than the current 1,200 student minimum to form Regional School Units (RSU), or Alternative Organizational Structures (AOS), if their plan is approved by the Commissioner of Education and local voters.
The formation of a new RSU or AOS will require the filing of a notice of intent to show that all reasonable and practical means have been exhausted, and that the Commissioner's approval be based on the unique and particular circumstances of the unit or units.
LD 570 also establishes collective bargaining procedures for the AOS's central office if they become an employer of individuals in a collective bargaining unit who have previously been employed by a school administrative unit.
Those rural schools that were facing stiff penalties for resisting consolidation now have alternative pathways to come into compliance.
Legislative Action
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