1. Recommended Funding Level Commissioner’s Maine State Board of Education December 12, 2007 Maine State Board of Education December 12, 2007

2. Essential Programs and Services Model Operating Costs – Per Pupil Amounts for System Administration and Operation & Maintenance of Plant Reduced as Required by §15680, sub-§1A&B – Per Pupil Weights for Economically Disadvantaged, Limited English Proficiency, And K-2 Specialized Population – All Other Per Pupil Dollar Amounts Inflated One Year – An Adjustment for Isolated Small Schools Continues Other Subsidizable Costs – EPS Special Education Model As Defined in 20-A MRSA Chapter 606-B including the Reduction Required by §15681-A, sub-§-2A – EPS Transportation Model As Defined in Chapter 606-B including the Reduction Required by §15681-A, sub-§-3A – Vocational Education and Gifted & Talented Continue Using Current Method Until an EPS Model is Approved Essential Programs and Services Model Operating Costs – Per Pupil Amounts for System Administration and Operation & Maintenance of Plant Reduced as Required by §15680, sub-§1A&B – Per Pupil Weights for Economically Disadvantaged, Limited English Proficiency, And K-2 Specialized Population – All Other Per Pupil Dollar Amounts Inflated One Year – An Adjustment for Isolated Small Schools Continues Other Subsidizable Costs – EPS Special Education Model As Defined in 20-A MRSA Chapter 606-B including the Reduction Required by §15681-A, sub-§-2A – EPS Transportation Model As Defined in Chapter 606-B including the Reduction Required by §15681-A, sub-§-3A – Vocational Education and Gifted & Talented Continue Using Current Method Until an EPS Model is Approved Key Funding Level Assumptions

3. Essential Programs and Services Model Debt Service – Continues to Include State Approved Major Capital Debt, Lease, Lease Purchase, and Insured Value Factor Costs Adjustments & Miscellaneous Costs – Includes State Agency Clients and Wards Essential Programs and Services Model Debt Service – Continues to Include State Approved Major Capital Debt, Lease, Lease Purchase, and Insured Value Factor Costs Adjustments & Miscellaneous Costs – Includes State Agency Clients and Wards Key Funding Level Assumptions State Local Share of K-12 Public Education State Share per 20-A MRSA Chapter 606-B Requirements – 55% of EPS Defined Costs – Phase-in Now Complete Local Share per 20-A MRSA Chapter 606-B Requirements – Mill Rate Required to Achieve 45% EPS Defined Costs State Local Share of K-12 Public Education State Share per 20-A MRSA Chapter 606-B Requirements – 55% of EPS Defined Costs – Phase-in Now Complete Local Share per 20-A MRSA Chapter 606-B Requirements – Mill Rate Required to Achieve 45% EPS Defined Costs

4. Amount Required (State & Local) to Fund the EPS Model for FY2009 Adjustments State Agency Clients & Wards Other Misc. Costs 4% $74,937,629 Debt Service Major Capital Construction Debt Temporary Lease Space Lease Purchase Conversions Major Capital Construction Debt Temporary Lease Space Lease Purchase Conversions $99,220,409 5% Current Practice Continues Other Subsidizable Costs Special Education Transportation Vocational Education Gifted & Talented Special Education Transportation Vocational Education Gifted & Talented $373,299,516 20% Operating Costs Salary and Benefits System Administration Operation & Maintenance Supplies & Equipment Other Instructional Support Transition Adjustments Salary and Benefits System Administration Operation & Maintenance Supplies & Equipment Other Instructional Support Transition Adjustments $1,328,039,781 71% Applying the EPS Model to FY2009 Adjustments State Agency Clients & Wards Other Misc. Costs $74,937,629 Debt Service Major Capital Construction Debt Temporary Lease Space Lease Purchase Conversions Major Capital Construction Debt Temporary Lease Space Lease Purchase Conversions $99,220,409 5% Current Practice Continues Other Subsidizable Costs Special Education Transportation Vocational Education Gifted & Talented Special Education Transportation Vocational Education Gifted & Talented $373,299,516 20% $1,875,497,335 State & Local $1,875,497,335 State & Local 100% EPS Model Operating Costs Salary and Benefits System Administration Operation & Maintenance Supplies & Equipment Other Instructional Support Transition Adjustments Salary and Benefits System Administration Operation & Maintenance Supplies & Equipment Other Instructional Support Transition Adjustments $1,328,039,781 71% 20-A MRSA Chapter 606B

5. The Cost of Funding Public Education K-12 for FY2008-09 Total Operating Allocation 100% Operating Costs $1,328,039,781 per 20-A MRSA Section 15683 Other Subsidizable Costs $373,299,516 per 20-A MRSA Section 15681-A Total Operating & Other Subsidizable Allocation $1,701,339,297 Total Debt Service Allocation $99,220,409 Total Adjustments and Miscellaneous $74,937,629 Total Cost of Funding Public Education $1,875,497,335 from Kindergarten to Grade 12 for 2008-09 State Contribution @ 55% $1,031,523,534 Local Contribution @ 45% $843,073,801 Local Mill Expectation 6.64 Mills The Cost of Funding Public Education K-12 for FY2008-09 Total Operating Allocation 100% Operating Costs $1,328,039,781 per 20-A MRSA Section 15683 Other Subsidizable Costs $373,299,516 per 20-A MRSA Section 15681-A Total Operating & Other Subsidizable Allocation $1,701,339,297 Total Debt Service Allocation $99,220,409 Total Adjustments and Miscellaneous $74,937,629 Total Cost of Funding Public Education $1,875,497,335 from Kindergarten to Grade 12 for 2008-09 State Contribution @ 55% $1,031,523,534 Local Contribution @ 45% $843,073,801 Local Mill Expectation 6.64 Mills

6. The Cost of Funding Public Education K-12 for FY2008-09

8. K-12 EDUCATION COSTS TOTAL (BILLIONS).8 1.0 1.2.6.4 1.4 1.6 1.8 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Education Funding Law Implementation State / Local Share of Education Costs.2 84%EPS 2.0 Local Share $ $737,013,147 100%EPS $1,786,037,540 100%EPS $1,786,037,540 FY2008 and FY2009 Funding Requirements $836,115,966 State Share $ FY08FY09 RFL $742,331,574 8.26 Mills 46.5% State Share (of 100% EPS) 46.5% State Share (of 100% EPS) 55.0% 100% of EPS Model Costs Phase-in of EPS / LD-1 J.E. Rier 12-11-07 Department of Education $846,003,440 7.44 Mills 100%EPS $1,895,210,824 100%EPS $1,895,210,824 $1,578,447,540 51.60% State Share (of 100% EPS) 53.51% State Share (of 95% EPS) 51.60% State Share (of 100% EPS) 53.51% State Share (of 95% EPS) $783,076,345 7.60 Mills 100%EPS $1,829,788,109 100%EPS $1,829,788,109 $1,697,174,567 90%EPS $914,098,222 50.0% State Share (of 100% EPS) 50.0% State Share (of 100% EPS) $843,973,801 6.64 Mills $977,958,385 95%EPS $1,827,623,778 $1,031,523,534 100%EPS $1,875,497,335

9. Residents Educated at Public Expense 190 195 200 185 180 205 210 215 97 99 01 03 05 07 09 11 13 15 17 Total State Resident Enrollments 175 Source: Maine State Planning Office 3-04 Graphics: J.E Rier 12-13-06 220 214,476 201,125 SPO Projections 3-04 194,838 198,070 204,106 191,659