[SchoolFinance] Unallocated Balance Forward Percentage Clarification - Excel Template

[Gravelle, Paula B]

Here is a link to an excel workbook with templates to calculate your Year-End Balances for each year from FY 2023 through FY 2026:

Year-End Balances<https://www.maine.gov/doe/sites/maine.gov.doe/files/inline-files/Year%20End%20Balance%20Template%20FY%202023%20through%20FY%202026.xlsx>

________________________________________

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<mailto:paula.b.gravelle at maine.gov>
Phone: 207-624-6792
Maine DOE<http://www.maine.gov/doe> | Facebook<https://www.facebook.com/MaineDepartmentofEducation1/> | Twitter<https://twitter.com/mdoenews> | Instagram<https://www.instagram.com/mainedepted/?hl=en> | Maine DOE Newsroom
<https://mainedoenews.net/>
[cid:image001.jpg at 01DA85E3.79FD8860]

From: SchoolFinance <schoolfinance-bounces at maillist.informe.org> On Behalf Of Gravelle, Paula B
Sent: Wednesday, April 3, 2024 9:31 AM
To: schoolfinance at maillist.informe.org
Subject: [SchoolFinance] Unallocated Balance Forward Percentage Clarification

EXTERNAL: This email originated from outside of the State of Maine Mail System. Do not click links or open attachments unless you recognize the sender and know the content is safe.
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<mailto:paula.b.gravelle at maine.gov>
Phone: 207-624-6792
Maine DOE<http://www.maine.gov/doe> | Facebook<https://www.facebook.com/MaineDepartmentofEducation1/> | Twitter<https://twitter.com/mdoenews> | Instagram<https://www.instagram.com/mainedepted/?hl=en> | Maine DOE Newsroom
<https://mainedoenews.net/>
[cid:image001.jpg at 01DA85E3.79FD8860]

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