[SchoolFinance] FW: PRIORITY NOTICE: Preliminary FY27 ED 279 Reports Now Available

[Gravelle, Paula B]

Priority Notice from the Maine Department of Education
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PRIORITY NOTICE: Preliminary FY27 ED 279 Reports Now Available

Dear Champions of Education,

The preliminary fiscal year (FY) 2026-2027 ED 279 subsidy reports are now available. You may view them here.<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=f73d8dc0d8&e=d89fcd9d0f>

The ED 279 subsidy reports provided to school administrative units (SAUs) are based on the nearly $1.6 billion in General Purpose Aid funding to be recommended for FY 2026-2027 by Governor Janet Mills in her upcoming 2027 supplemental budget. This reflects the Governor's continued commitment to funding 55% of the total cost of education, even in a particularly challenging budget year, and results in a maximum required local contribution mill rate of 5.645-a historic low.

The ED 279 subsidy reports are calculated using the Essential Programs and Services (EPS) funding formula, pursuant to Title 20-A, Chapter 606-B<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=b71eb1e3ee&e=d89fcd9d0f>. While the formula is grounded in years of research and data and is designed to respond to student needs, while directing resources to communities with the greatest need, the Joint Standing Committee on Education and Cultural Affairs of the Maine State Legislature will continue its thorough review of the formula this session. The Maine Department of Education (DOE) recognizes that the formula may not fully capture every need of an SAU, particularly given the varying priorities across schools and communities statewide.

The chart below reflects the preliminary estimated total cost of education using the EPS funding formula, along with the preliminary state and local required contributions:

State contribution: 55%

Local contribution: 45% (5.645 mill rate cap)

State appropriation: $1,579,255,430

Local required contribution: $1,292,118,080

Total cost of education FY27 EPS calculation: $2,871,373,510


Points to consider when reviewing the FY 2026-2027 ED 279:

  *   Reclassification of Major Capital Project Payments
Principal and interest payment allocations for approved major capital projects have been moved from the Debt Service Allocations section to the State Contribution-Only Targeted Education Funds section.
     *   For SAUs with approved major capital projects, these payment allocations now appear in Section 5B, lines 12 and 13, rather than Section 3C.

  *   Changes Related to State-Approved School Construction
SAUs that have either completed payments or begun new principal and/or interest payments for state-approved school construction may see changes in funding due to the removal of completed payments or the addition of new ones.

  *   Removal of Adult Education Funding from EPS Calculations
Funding for adult education services supporting students ages 16-20 who are no longer enrolled in public education has been removed from the EPS funding calculation (Section 2B, line 4).
     *   These funds are now provided as targeted education funds directly to the adult education programs where students are enrolled to earn high school equivalency diplomas.

  *   Impact of Enrollment and Student Characteristics
Changes in student enrollment, disadvantaged student counts, special education costs, and other key formula factors can significantly affect SAU funding, as the EPS funding model is fundamentally student-centered.
Additional guidance for reviewing and comparing the prior fiscal year ED 279 to the preliminary FY 2026-2027 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=b7f4fb8edd&e=d89fcd9d0f>
  *   FY 2026-27 Funding Details<https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=26041b3052&e=d89fcd9d0f>
Please remember that these are preliminary calculations based on the Governor's Recommended Funding Level in the upcoming 2027 supplemental 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.

Thank you.


Sent January 29, 2026
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