<div dir="ltr">But isn't there a proposed bill, LD 1103, that proposes to allow the threshold to stay at 9% that applies to all future fiscal years?<div><br></div><div>Carla</div></div><br><div class="gmail_quote gmail_quote_container"><div dir="ltr" class="gmail_attr">On Thu, Apr 10, 2025 at 9:10 AM Gravelle, Paula B <<a href="mailto:Paula.B.Gravelle@maine.gov">Paula.B.Gravelle@maine.gov</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div class="msg-7704451875935412642">
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<p class="MsoNormal"><span style="font-size:11pt">Hello All,<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">Given the current conversation here is a reminder of the current statute for unallocated fund balances<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">As always, we recommend you seek guidance from either legal counsel and/or your auditor.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">Here is a copy of the specific statute:
</span><span style="font-size:11pt;font-family:Calibri,sans-serif"><a href="https://www.mainelegislature.org/legis/statutes/20-A/title20-Asec15689-B.html" target="_blank"><span style="color:rgb(5,99,193)">Statue is 20-A 15689-B, 6.</span></a></span><span style="font-size:11pt"><u></u><u></u></span></p>
<p class="MsoNormal"><u></u> <u></u></p>
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<b><span style="font-family:"Times New Roman",serif;color:black;letter-spacing:-0.4pt">6. Balance of allocations. </span></b><span style="font-family:"Times New Roman",serif;color:black;letter-spacing:-0.4pt">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. </span><u></u><u></u></p>
<p class="MsoNormal"><span style="font-size:10pt;font-family:"Courier New";color:black;letter-spacing:-0.4pt;background:rgb(231,244,255)">[PL 2021, c. 213, §1 (AMD).]</span><u></u><u></u></p>
<p class="MsoNormal"><b><span style="font-size:11pt"><u></u> <u></u></span></b></p>
<p class="MsoNormal"><span style="font-size:11pt">FY 2020-21 = May carry forward Unallocated Balance up to 5% of previous fiscal year’s school budget<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">FY 2021-22 = May carry forward Unallocated Balance up to 9% of previous fiscal year’s school budget<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">FY 2022-23 = May carry forward Unallocated Balance up to 9% of previous fiscal year’s school budget<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">FY 2023-24 = May carry forward Unallocated Balance up to 9% of previous fiscal year’s school budget<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">FY 2024-25 = May carry forward Unallocated Balance up to 9% of previous fiscal year’s school budget<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt;background:yellow">FY 2025-26 onward = May carry forward Unallocated Balance up to 5% of previous fiscal year’s school budget</span><span style="font-size:11pt"><u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">I hope this helps.<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="font-size:11pt">Sincerely,<u></u><u></u></span></p>
<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><span>________________________________________<br>
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<b>Paula Gravelle</b><br>
Director of Public School Finance <br>
Maine Department of Education<br>
23 State House Station<br>
Augusta, Maine 04333-0023<br>
<b>Email: </b><a href="mailto:paula.b.gravelle@maine.gov" target="_blank"><span style="color:rgb(0,112,192)">paula.b.gravelle@maine.gov</span></a>
<br>
<b>Phone</b>: 207-624-6792</span><u></u><u></u></p>
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<p class="MsoNormal">On Tue, Apr 8, 2025 at 10:44<span style="font-family:Arial,sans-serif"> </span>AM Carla Franzose <<a href="mailto:cfranzose@carrabec.org" target="_blank">cfranzose@carrabec.org</a>> wrote:<u></u><u></u></p>
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<p class="MsoNormal"><span style="color:black">Just wondering if you all could share what % of the previous year's budget is your unallocated fund balance. RSU 74's is currently at 11.5%</span><u></u><u></u></p>
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<p class="MsoNormal"><span class="m_-7704451875935412642gmailsignatureprefix">-- </span><u></u><u></u></p>
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<p class="MsoNormal">Carla Franzose<u></u><u></u></p>
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<p class="MsoNormal">Business Secretary, RSU 74<u></u><u></u></p>
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<p class="MsoNormal">_______________________________________________<br>
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_______________________________________________<br>
SchoolFinance mailing list<br>
<a href="mailto:SchoolFinance@maillist.informe.org" target="_blank">SchoolFinance@maillist.informe.org</a><br>
<a href="http://maillist.informe.org/mailman/listinfo/schoolfinance" rel="noreferrer" target="_blank">http://maillist.informe.org/mailman/listinfo/schoolfinance</a></div></blockquote></div><div><br clear="all"></div><div><br></div><span class="gmail_signature_prefix">-- </span><br><div dir="ltr" class="gmail_signature"><div>Carla Franzose</div><div>Business Secretary, RSU 74</div></div>