Finance Authority of Maine
Education Update
June 2011
In This Issue
Legislative Update
State Budget
Cabinet Confirmations
Legislation of Interest
Upcoming Events
 
June 30, 2011
Tools for Success:  Serving Maine Students Financial Aid Conference
  
July 14, 2011
Educators for Maine Advisory Committee Meeting
  
July 21, 2011
FAME Board of Directors Meeting
Harold Alfond College Challenge 

 

The Harold Alfond College Challenge had successful Casting Calls this spring with nearly 450 applications in total from Portland, Bangor, Presque Isle and Auburn.

 

Legislative Update

 

The 2011 legislative session is almost over.  The first session is expected to adjourn sometime during the last week of June and return (barring any interim confirmation sessions) for the second session in early January 2012.

 

Members of the Appropriations Committee will meet June 23 to decide numerous bills that have fiscal notes attached.  The full Legislature is scheduled to return June 28 to finish remaining work, including a bill to authorize charter schools in Maine and any bills that may be vetoed by Gov. LePage.

 

State Budget 

 

The Appropriations Committee unanimously approved a $6.1 billion budget to fund the state through the next two years.  The Legislature enacted the bill and it has been signed by the governor.

 

There is good news in the budget for funding of FAME-administered higher education programs.  These include:  increased funding ($11,073,453 in both years of the biennium) for student financial assistance; restoration of a previous cut ($125,445) in the second year of the biennium to the Doctors for Maine's Future Scholarship Program; restoration of a proposed cut ($237,740 for both years of the biennium) to the Maine Dental Loan and Loan Repayment Programs; and restoration of a proposed cut ($100,353 in funding each year of the biennium) to Maine's Area Health Education Centers.  Additionally, a new tax credit to encourage business investments in Maine's economically distressed areas is included in the budget and will be administered by FAME.

 

To view a copy of the budget amendment enacted by the Legislature, please visit:

http://www.mainelegislature.org/legis/bills/bills_125th/billtexts/HP098902.asp

 

Cabinet Confirmations

 

On June 3, the Senate confirmed two of Gov. LePage's nominees for cabinet-level positions.  The Senate confirmed Lieutenant General Robert Winglass as Commissioner of the Department of Labor.  Gen. Winglass served in the Marine Corps until 1992 and served four years in the Maine House of Representatives.  The Senate also confirmed George Gervais as Commissioner of the Department of Economic and Community Development.  Gervais has worked at the Department since 2008, most recently as Acting Commissioner. Before working at the Department, George worked as a loan officer and in other business.  On a related note, Pattie Aho, a former Pierce Atwood attorney, has been named acting commissioner of the Maine Department of Environmental Protection.  Aho has served as deputy commissioner of the DEP since February and replaces previous Acting Commissioner and DEP Air Bureau Director Jim Brooks.  This appointment did not require Senate confirmation.

 

Legislation of Interest 

 

LD 119, An Act To Allow a Tax Credit for Students Enrolled in Postsecondary Non-degree Programs:  Proposes to amend the educational opportunity tax credit to allow a credit for tuition paid for postsecondary education courses taken as part of a non-degree program, such as the Aspirations Program offered by the University of Maine.  Status:  Dead.

 

LD 164, An Act To Extend the Dental Care Access Credit for Dentists Who Practice in Underserved Areas of the State:  As amended by Taxation Committee, extends the sunset date for the program until December 31, 2020; allows a dentist who is currently certified for a credit at a certain level to maintain that level of credit; lowers the credit from $15,000 to $12,000 for dentists determined to be eligible after December 31, 2010; and allows 6 rather than 5 dentists to be certified for eligibility for the credit each year.  Status:  Placed on Special Appropriations Committee Table due to fiscal note.  Committee vote likely June 23.

 

LD 184, An Act to Promote the Financial Literacy of High School StudentsAs amended, would require the Department of Education to develop a program of technical assistance that promotes an integrated model for instruction in personal finance to help secondary school students attain financial literacy.  Requires commissioner to submit an annual report to school boards and superintendents that includes strategies and resources available to implement an integrated model for instruction in personal finance for use in secondary schools.  Also requires the annual report to be provided to the Education Committee and posted on the Department's website.  Status:  Signed into law by Gov. LePage.  Public Law 2011, Chapter 154.

 

LD 209, Resolve, to Establish a Stakeholder Group to Review the Maine State Grant Program:  Authorizes FAME to coordinate a review of the program that includes the participation of a stakeholder group of higher education policy makers, agencies, institutions, students and financial aid administrators in the state and report to the Education Committee with recommendations by December 1, 2011.  Status:  Enacted by Legislature and signed into law by Gov. LePage.  Resolve 2011, Chapter 14.

 

LD 835, An Act To Strengthen Maine's Economy through Improvements to the Educational Opportunity Tax CreditAs amended, this Opportunity Maine-sponsored bill would remove restrictions on the term of eligible loans and make the Educational Opportunity Tax Credit refundable, allowing a full reimbursement for education loan payments for college graduates who live and work in Maine.  The Taxation Committee voted to include a new sunset of July 1, 2022 to require reconsideration of the program to determine whether it should be continued.  Status:  Bill committed to Taxation Committee (carried over to Second Session).

 

LD 944, An Act to Increase College Attainment:  Would require secondary school students to complete a federally accepted free application for federal student aid and at least one application to a postsecondary educational institution to assess eligibility for financial aid.  Status:  Dead.

 

LD 1008, An Act to Limit the Use of Social Security Numbers by State Agencies:  Would prohibit state agencies from including an individual's social security number in written correspondence.  Status:  Signed into law by Gov. Lepage.  Resolve 2011, Chapter 56.

 

LD 1173, An Act to Make Changes to the Maine College Savings Program:  Makes changes to the Maine College Savings Program, also known as NextGen or the NextGen College Investing Plan, by vesting the act of "holding" the program fund in the authority and not the Treasurer of State; by clarifying that in holding the program fund, the authority may invest, reinvest or commingle the assets in the program fund as authorized or may cause such assets to be invested, reinvested or commingled.  Also alters the composition of the Advisory Committee on College Savings to include more members with experience in and knowledge of institutional investment of funds.  Status:  Signed into law by Gov. LePage.  Public Law 2011, Chapter 150.

 

LD 1174, An Act To Help Maine's Employers To Recruit Skilled Workers by Expanding the Availability of the Educational Opportunity Tax Credit:  Another Opportunity Maine bill, this would allow a tax credit for student loans incurred by a person who receives an associate degree or a bachelor's degree from out-of-state accredited community colleges, colleges or universities, not just those located in Maine. Status:  Dead.

 

LD 1422, An Act To Prepare Maine People for the Future Economy:  Sponsored by Sen. Brian Langley, Senate Chair of the Education and Cultural Affairs Committee, the bill:

 

1.  Establishes an education policy, core priorities for the state's education system, education system goals, benchmarks and intervention strategies;

2.  Requires the development of a strategic plan to achieve the goals within the policy framework;

3.  Requires that the state budget document present proposed expenditures on early childhood development, public education, adult education, higher education and workforce development in a manner that facilitates evaluation by the Legislature of whether funds are being appropriated and allocated in a manner that best accords with the established policy framework, advances the established goals and implements the strategic plan;

4.  Requires that the Commissioner of Education adopt rules prescribing a uniform process for kindergarten screening in a manner that facilitates reliable and consistent measurement of statewide kindergarten readiness;

5.  Requires school administrative units to award high school diplomas based on standards established by rule; and

6.  Requires that, beginning with the class of 2015, students graduating from high schools demonstrate proficiency in the content areas of English language arts, mathematics, science and technology, social studies and health, physical education and wellness. Beginning with the class of 2018, students graduating from high schools must demonstrate proficiency in the content areas of career and education development; English language arts; world languages; health, physical education and wellness; mathematics; science and technology; social studies; and visual and performing arts.

 

Status:  Carried over by Education Committee to Second Session.

 

LD 1558, Resolve, To Study Allocations of the Fund for a Healthy Maine:  This resolve establishes a commission tasked with reviewing whether allocations of the Fund for a Healthy Maine are properly aligned with the state's current public and preventive health priorities, strategies and goals and recommending adjustments to allocations as necessary.  Status:  Not yet reported out of committee.  Placed on Special Appropriations Committee Table due to fiscal note.  Committee vote likely June 23.

 

 

 

 

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