[SchoolFinance] Unallocated Balance Forward Percentage Clarification

[Joy Duncan]

Do you have a link to the spreadsheet used to calculate this?

Thank you!

Joy

On Wed, Apr 3, 2024 at 9:32 AM Gravelle, Paula B <Paula.B.Gravelle at maine.gov>
wrote:

> Hello All,
>
>
>
> We have been receiving many questions about the current percentage allowed
> for unallocated balance forward’s for school administrative unit’s given
> the recent changes in statute.  Hopefully the information below will help
> clarify some of those questions.
>
>
>
> As always, we recommend you seek guidance from either legal counsel and/or
> your auditor.
>
>
>
> Here is a copy of the specific statute: Statue is 20-A 15689-B, 6.
> <https://www.mainelegislature.org/legis/statutes/20-A/title20-Asec15689-B.html>
>
>
>
> *6.  Balance of allocations.  *Notwithstanding any other law, general
> operating fund balances at the end of a school administrative unit's fiscal
> year must be carried forward to meet the unit's needs in the next year or
> over a period not to exceed 3 years. Unallocated balances in excess of 5%
> of the previous fiscal year's school budget must be used to reduce the
> state and local share of the total allocation for the purpose of computing
> state subsidy. School boards may carry forward unallocated balances in
> excess of 5% of the previous year's school budget and disburse these funds
> in the next year or over a period not to exceed 3 years. For fiscal years
> 2021-22, 2022-23, 2023-24 and 2024-25 only, unallocated balances in excess
> of 9% of the previous fiscal year's school budget must be used to reduce
> the state and local share of the total allocation for the purpose of
> computing state subsidy and school boards may carry forward unallocated
> balances in excess of 9% of the previous fiscal year's school budget and
> disburse these funds in the next year or over a period not to exceed 3
> years.
>
> [PL 2021, c. 213, §1 (AMD).]
>
>
>
> FY 2020-21 = May carry forward Unallocated Balance up to 5% of previous
> fiscal year’s school budget
>
> FY 2021-22 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2022-23 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2023-24 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2024-25 = May carry forward Unallocated Balance up to 9% of previous
> fiscal year’s school budget
>
> FY 2025-26 onward = May carry forward Unallocated Balance up to 5% of
> previous fiscal year’s school budget
>
>
>
> I hope this helps.
>
>
>
> Sincerely,
>
> ________________________________________
>
> *Paula Gravelle*
> Director of School Finance
> Maine Department of Education
> 23 State House Station
> Augusta, Maine 04333-0023
> *Email: *paula.b.gravelle at maine.gov
> *Phone*: 207-624-6792
>
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>
>
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-- 
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