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132nd MAINE LEGISLATURE
FIRST SPECIAL SESSION-2025
Legislative Document No. 1518
H.P. 1003 House of Representatives, April 8, 2025
An Act to Clarify the Amount and Use of Unallocated Balances in a
School Administrative Unit Budget
Reference to the Committee on Education and Cultural Affairs suggested and ordered
printed.
ROBERT B. HUNT
Clerk
Presented by Representative FROST of Belgrade.
Cosponsored by Representatives: FRIEDMANN of Bar Harbor, HASENFUS of Readfield,
ROEDER of Bangor, Senator: BRADSTREET of Kennebec.
Page 1 - 132LR2405(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 20-A MRSA §15004, first ¶, as amended by PL 1989, c. 425, §3, is further
3 amended to read:
4 The unexpended balance of all money raised by a school administrative unit, received
5 from the State for general-purpose aid or for other educational programs; from the Federal
6 Government directly or from the Federal Government through the State; from tuition
7 payments made by other units, the State, or by individuals; and other receipts for school
8 purposes shall must be carried forward and credited to spent by the unit for educational
9 programs for in the ensuing year.
10Sec. 2. 20-A MRSA §15689-B, sub-§6, as amended by PL 2021, c. 213, §1, is
11 further amended to read:
126. Balance of allocations. Notwithstanding any other law to the contrary, general
13 operating fund balances at the end of a school administrative unit's fiscal year must be
14 carried forward to meet the unit's needs in the next year or over a period not to exceed 3
15 years. Unallocated balances in excess of 5% of the previous fiscal year's school budget
16 must be used to reduce the state and local share of the total allocation for the purpose of
17 computing state subsidy spent to fund educational programs. School boards may carry
18 forward unallocated balances in excess of 5% of the previous year's school budget and
19 disburse spend these funds for educational programs in the next year or over a period not
20 to exceed 3 years. For fiscal years 2021-22, 2022-23, 2023-24 and 2024-25 only,
21 unallocated balances in excess of 9% of the previous fiscal year's school budget must be
22 used to reduce the state and local share of the total allocation for the purpose of computing
23 state subsidy and school boards may carry forward unallocated balances in excess of 9%
24 of the previous fiscal year's school budget and disburse these funds in the next year or over
25 a period not to exceed 3 years The unallocated funds must be held separate and apart from
26 all other money, funds and accounts.
27SUMMARY
28 This bill amends the laws governing unexpended balances and unallocated general
29 operating fund balances of school administrative units in the following ways.
30 1. It changes the current requirement that the unexpended balance of all money raised
31 by a school administrative unit received for school purposes be carried forward and credited
32 to the unit for educational programs in the ensuing year, to instead require that the
33 unexpended balance be carried forward and spent by the unit in the ensuing year.
34 2. It changes the current requirement that unallocated general operating fund balances
35 in excess of 5% of the previous fiscal year's school budget be used to reduce the state and
36 local share of the total allocation for the purpose of computing state subsidy, to instead
37 require that the unallocated balances in excess of 5% be used to fund educational programs.
38 It authorizes school boards to carry forward unallocated balances in excess of 5% of the
39 previous year's school budget and spend those funds for educational programs in the next
40 year or over a period not to exceed 3 years.
41 3. It strikes language that applies only to fiscal years 2021-22, 2022-23, 2023-24 and
42 2024-25.
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