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<title>PRIORITY NOTICE: Preliminary FY27 ED 279 Reports Now Available</title>
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<p class="MsoNormal"><span style="font-size:7.5pt;font-family:"Arial",sans-serif;color:#505050">Priority Notice from the Maine Department of Education<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:7.5pt;font-family:"Arial",sans-serif;color:#505050"><a href="https://mailchi.mp/maine/cu5lemq6y0-1594254?e=d89fcd9d0f" target="_blank"><span style="color:#336699">View this message in your browser</span></a>.<o:p></o:p></span></p>
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<p style="line-height:150%"><strong><span style="font-size:21.0pt;line-height:150%;font-family:"Arial",sans-serif;color:#505050">PRIORITY NOTICE: Preliminary FY27 ED 279 Reports Now Available</span></strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif;color:#505050"><br>
<br>
Dear Champions of Education,<br>
<br>
The preliminary fiscal year (FY) 2026-2027 ED 279 subsidy reports are now available.
<a href="https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=f73d8dc0d8&e=d89fcd9d0f">
<span style="color:#336699">You may view them here.</span></a><br>
<br>
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.<br>
<br>
The ED 279 subsidy reports are calculated using the Essential Programs and Services (EPS) funding formula, pursuant to
<a href="https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=b71eb1e3ee&e=d89fcd9d0f">
<span style="color:#336699">Title 20-A, Chapter 606-B</span></a>. 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.<br>
<br>
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:<o:p></o:p></span></p>
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<span style="font-size:10.5pt;font-family:"Arial",sans-serif">State contribution: 55%</span><br>
<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Arial",sans-serif">Local contribution: 45% (5.645 mill rate cap)</span><o:p></o:p></p>
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<span style="font-size:10.5pt;font-family:"Arial",sans-serif">State appropriation: $1,579,255,430</span><br>
<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Arial",sans-serif">Local required contribution: $1,292,118,080</span><o:p></o:p></p>
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<strong><span style="font-size:10.5pt;font-family:"Arial",sans-serif">Total cost of education FY27 EPS calculation: $2,871,373,510</span></strong><br>
<o:p></o:p></p>
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<p class="MsoNormal" style="line-height:150%"><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif;color:#505050"> <br>
<strong><span style="font-family:"Arial",sans-serif">Points to consider when reviewing the FY 2026-2027 ED 279:
</span></strong><o:p></o:p></span></p>
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<li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l1 level1 lfo1">
<strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif">Reclassification of Major Capital Project Payments</span></strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif"><br>
Principal and interest payment allocations for approved major capital projects have been moved from the
<em><span style="font-family:"Arial",sans-serif">Debt Service Allocations</span></em> section to the
<em><span style="font-family:"Arial",sans-serif">State Contribution–Only Targeted Education Funds</span></em> section.
<o:p></o:p></span></li><ul type="circle">
<li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l1 level2 lfo1">
<span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif">For SAUs with approved major capital projects, these payment allocations now appear in
<strong><span style="font-family:"Arial",sans-serif">Section 5B, lines 12 and 13</span></strong>, rather than
<strong><span style="font-family:"Arial",sans-serif">Section 3C</span></strong>.<br>
<o:p></o:p></span></li></ul>
<li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l1 level1 lfo1">
<strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif">Changes Related to State-Approved School Construction</span></strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif"><br>
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.<br>
<o:p></o:p></span></li><li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l1 level1 lfo1">
<strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif">Removal of Adult Education Funding from EPS Calculations</span></strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif"><br>
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 (<strong><span style="font-family:"Arial",sans-serif">Section 2B, line 4</span></strong>).
<o:p></o:p></span></li><ul type="circle">
<li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l1 level2 lfo1">
<span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif">These funds are now provided as
<em><span style="font-family:"Arial",sans-serif">targeted education funds</span></em> directly to the adult education programs where students are enrolled to earn high school equivalency diplomas.<br>
<o:p></o:p></span></li></ul>
<li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l1 level1 lfo1">
<strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif">Impact of Enrollment and Student Characteristics</span></strong><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif"><br>
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.<o:p></o:p></span></li></ul>
<p class="MsoNormal" style="line-height:150%"><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif;color:#505050">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: <o:p></o:p></span></p>
<ul type="disc">
<li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l0 level1 lfo2">
<span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif"><a href="https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=b7f4fb8edd&e=d89fcd9d0f"><span style="color:#336699">Analyzing changes to your ED 279</span></a><o:p></o:p></span></li><li class="MsoNormal" style="color:#505050;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:150%;mso-list:l0 level1 lfo2">
<span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif"><a href="https://maine.us2.list-manage.com/track/click?u=a582edd6473e477ef6307c769&id=26041b3052&e=d89fcd9d0f"><span style="color:#336699">FY 2026-27 Funding Details</span></a><o:p></o:p></span></li></ul>
<p class="MsoNormal" style="line-height:150%"><span style="font-size:10.5pt;line-height:150%;font-family:"Arial",sans-serif;color:#505050">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.<br>
<br>
Should you have questions regarding subsidy reports, please contact Donna Tiner of the Maine DOE School Finance Team at <a href="mailto:donna.tiner@maine.gov"><span style="color:#336699">donna.tiner@maine.gov</span></a> or 207-624-6640.<br>
<br>
Thank you.<br>
<br>
<br>
<em><span style="font-family:"Arial",sans-serif">Sent January 29, 2026</span></em><o:p></o:p></span></p>
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