January 6, 2009     Reported By: A.J. Higgins

Members of the Legislature, educators and school superintendents reacted coolly today to the Baldacci administration's proposed $27 million cut in general purpose aid to education. But as members of the Appropriations Committee continued their review of the Governor's $140 million supplemental budget, state education officials remained pessimistic over any efforts to increase state funding for local education to 55 percent as demanded in a 2004 state referendum vote by Maine voters.

Maine schools have become accustomed to getting $1 billion annually in general purpose aid, but a dramatic drop in state revenues has prompted some less-than-welcome news. Jim Rier is with the state education department.  "The intiative reduces funding available for general purpose aid by $27,046,649," he testified.

Members of the  Legislature's Appropriations Committee are well aware that $27 million is a large amount of money for Maine schools to write off over the next six months of the current budget cycle. State Rep. Howard McFadden spoke for others in the room when he sized up the quandary that local school departments will face as the result of the cut.  "So that means that the state saves money, but the towns end up raising more money, so it increases property taxes."

In 2004, Maine voters approved a referendum  requiring the state to meet a statutory obligation to pay 55 percent of local education costs. Although Gov. John Baldacci was able to deliver education increases, the proposed reduction would leave the state's share at 52.5 percent -- a number that worried Rep. Sawin Millett as he questioned Rier about the level of education funding in the governor's two-year budget that will be released Friday.  "Mr.  Rier, the Legislature in 2006 made a committment to get to 55 percent and this year, and this represents the second backing away from that goal, and would result in a 52.5 percent sharing for '09.  By work session next week, we'll know what the biennial prediction or proposal is. Is it fair to assume that we're looking at something like flat funding for the biennium?

Rier:  "I think it would be general knowledge that it's flat funding. Maybe you could clarify what you mean, flat from what?"

Millett:  "Thinking about where we were a year ago, minus 27."

Rier:  "Yes."

Chris Gallgay of the Maine Education Assoication reminded the Appropriations Committee that Maine voters had expected to be at the 55 percent funding level three years ago.  "To date the Governor and Legislature have ignored the will of the Maine voters.  It began with a proposed four-year ramp to 55 percent state funding for our public schools.  And now the ramp has become flat."

Flat funding for the next two years didn't sit well with members of the audience like Aileen King, the president of the Maine School Superintendents Assocation, who was concerned about the state's committment to local education. "That percentage would drop to 48 percent by 2011 if the state flat funds education in the next biennial budget.  And the local taxpayers do not have the money to fill in the gaps."

King says that if the state must make funding reductions, the least lawmakers can do is to give school departments more time to absorb the losses. "In the five months that are left in this school year, what we are asking for is more time to achieve the $27 million cut, by taking some now and pushing the rest in the next fiscal year."

Members of the Appropriations Committee are expected to vote on the the governor's supplemental budget package by Jan. 23.