[SchoolFinance] PRIORITY NOTICE: Preliminary FY26 ED 279 Reports Now Available

[Gravelle, Paula B]

Priority Notice from the Maine Department of Education
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PRIORITY NOTICE: Preliminary FY26 ED 279 Reports Now Available

Dear Champions of Education,

The fiscal year 2025-2026 preliminary ED 279 subsidy reports are now available. You may view them here<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=1099b7fda7&e=d89fcd9d0f>.

The subsidy reports provided are based on the $1.506 billion in General Purpose Aid funding recommended for FY 2025-2026 by Governor Janet Mills in her 2025-2027 biennial budget. This amount reflects the Governor’s commitment to the State’s share of 55% of the total cost of education funding, even in this especially challenging budget year, and provides a maximum mill rate of 6.10 – a historic low.

The ED 279 subsidy reports are calculated using the Essential Programs and Services (EPS) Funding Formula, per Title 20-A, Chapter 606-B<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=b02d6b1546&e=d89fcd9d0f>. The formula is based on years of research and information, designed to respond to student needs and to direct resources to the communities with the most need. That said, the Maine Department of Education (DOE) understands that the formula is not responsive to every need a school administrative unit (SAU) may have, especially given the different priorities in schools and communities throughout the state.

The chart below reflects the preliminary estimated total cost of education using the EPS Funding Formula and the preliminary State and local required contributions:
State contribution: 55%
Local contribution: 45% (6.10 mill rate cap)
State appropriation: $1,506,035,654
Local required contribution: $1,232,210,988
Total Cost of Education FY26 EPS Calculation: $2,738,246,642

Points to consider when reviewing the FY 2025-2026 ED 279:

  *   Public Law 2024 Chapter 643 – Part G (Minimum Wage for Hourly Public School Staff) requires that the EPS Funding Formula include an update to the salary matrices used in Section 1 of the ED 279 reports to reflect any increase in the minimum hourly wage of educational technicians and other support staff in accordance with §4016<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=cb016d0c75&e=d89fcd9d0f>, subsection 3. (Title 20-A, §15677<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=e8bef70e71&e=d89fcd9d0f>, subsection 2.C.) Click here for the 2025-2026 EPS staff salary matrices<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=cdbae6f0f5&e=d89fcd9d0f>.

  *   An increase or decrease in student enrollment, disadvantaged student population, special education costs, and other key factors in the formula have a major impact on funding for each SAU, as the EPS Funding Formula is a student-centered funding model.

  *   SAUs that have either paid off or have begun to pay principal or interest payments for State-approved new school construction will realize changes in funding if either a payment no longer needs to be made or if a new payment has begun.
Additional guidance for reviewing and comparing prior fiscal year ED 279 to the preliminary FY 2025-2026 ED 279 can be found at the following links:

  *   Analyzing changes to your ED 279<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=d56aa010aa&e=d89fcd9d0f>
  *   FY 2025-26 Funding Details<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=c138d6cbe3&e=d89fcd9d0f>

Please remember, these are preliminary calculations based on the Governor’s Recommended Funding Level in the 2025-2027 biennial budget request. Changes may occur after the budget is enacted through the legislative process.

Should you have questions regarding subsidy reports, please contact Donna Tiner of the Maine DOE School Finance Team at donna.tiner at maine.gov<mailto:donna.tiner at maine.gov> or 207-624-6640.

Sent January 27, 2025
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