Finance Authority of Maine
Education Update
April 2012
In This Issue
EPIC
Legislative Update
Supplemental Budget
DHHS Supplemental Budget
Bills of Interest
Upcoming Events

May 17, 2012
FAME Board of Directors Meeting
 
May 18, 2012
Educators For Maine Selection Committee Meeting

 

May 23, 2012

Advisory Committee on College Savings Meeting

 

May 28, 2012

FAME will be closed in observance of the Memorial Day Holiday

Education Programs Applications 
 

The new and renewal application deadline of May 1 for the Educators for Maine (EFM) program is fast approaching.  The selection committee for EFM will be meeting on May 18 to select 20 new recipients.

 

The new and renewal application deadline for Medical Programs is May 30.  New applications are being accepted for the:  Health Professions Loan Program, Maine Dental Education Loan Program, Maine Veterinary Medicine Loan Program, and Dental Loan Repayment.  Renewal applications are still being accepted for the:  Maine Health Professions Loan Program, Maine Dental Education Loan Program, Maine Access to Veterinary Medicine, and Dental Loan Repayment.

 

We are pleased to announce that FAME has notified applicants of their selection for the 2012-2013 academic year for assistance under the Tuition Waiver Program. Applicants were selected if their eligibility was confirmed by the Maine Department of Health and Human Services and their application was one of the first 30 completed applications received by FAME.

 

Payment/Refund Processing and Program Reconciliation 

 

If you have any students in Educators For Maine, State of Maine Grant, Tuition Waiver or GEAR UP
programs remaining that need to be certified for payment or need refunds processed for the 2011-2012 academic year, we urge you to visit our EPIC web site to process these requests.  In addition, please remember to complete your reconciliation prior to the end of the current academic year.

 

Legislative Update 


The Second Session of the 125th Maine Legislature recessed on April 14.  The break is temporary as legislators will be returning in mid-May to finalize a supplemental human services budget and dispose of a handful of remaining bills.

 

Supplemental Budget 


The Legislature approved an amended version of Gov. LePage's $38 million supplemental budget.  This budget is separate from the human services budget mentioned above.  It addresses a shortfall in the two-year, $6 billion budget that ends June 30.  The budget contains a total of $31 million in new spending for 2012 and 2013, which is offset by $41.8 million in general fund savings.  Gov. LePage exercised line-item vetoes with respect to two areas of the budget:  General Assistance funding to local towns and the "disproportionate share" to hospitals and psychiatric facilities, which offsets losses in federal funding.  Line-item vetoes apply only to dollar amounts contained in the budget and not budget language.  Legislative leaders declined to return to Augusta to address these vetoes, instead opting to address the funding issues in May when they reconvene.

 

DHHS Supplemental Budget 

 

Although most members of the Legislature have gone home, Appropriations Committee members will continue work in April and May on cuts to the Department of Health and Human Services and other budget items.  This budget will address an estimated $86 million deficit.  The Appropriations Committee received information regarding two issues that delayed completion of the budget this session.  It was reported that the state had not accounted for $14 million in revenues that were deposited in January.  This means that current revenue projections were based on incorrect figures and that revenues may have to be re-projected before the Legislature can complete work on the budget.  Another complicating factor is that the committee also learned that a computer error that came to light last month that allowed 19,000 ineligible people to remain on MaineCare was not corrected as anticipated and that an additional 5,300 ineligible people may have remained on MaineCare over the past three months.  The Appropriations Committee will be meeting the week of April 23-27 to also consider remaining bills and a possible bond package.

 

Bills of Interest 

 

  • L.D. 1662 (sponsored by Sen. Raye), An Act to Provide for an Advisory Referendum on the Approval of Tax-Exempt Student Loan Revenue Bonds:  The Maine Educational Loan Authority (MELA) issues private activity bonds to fund supplemental student loans for Maine students and families and services its debts with the revenue streams associated with student loan repayment. The bill directs the Secretary of State to hold an advisory referendum at a statewide election to determine whether the voters of the state favor the Governor's approval of MELA's issuance of no more than $50 million of tax-exempt student loan revenue bonds over the next 3 years, to be repaid by the loan recipients.  Status:  Public hearing held Wednesday, February 22 at 1:00 p.m. in Appropriations Committee.  Work sessions scheduled for April 23 and 24 at 10:00 a.m.
  • L.D. 1422 (sponsored by Sen. Langley), An Act to Prepare Maine People for the Future Economy:  The bill as amended proposes to overhaul Maine's high school graduation requirements. The bill would no longer allow students to earn credits merely for time spent in school. Instead, they would have to demonstrate proficiency in every skill and topic in the eight content areas and five guiding principles of the Maine Learning Results.  An amendment removes the mandate preamble and requires the Department of Education, if funds are available, to make annual grants to school administrative units to fund the costs of transition to proficiency-based graduation standards for the awarding of high school diplomas.  The amendment also extends the date for implementation of the new system by one year for each year in which transition grants are not made or for which levels of general purpose aid for local schools fall below school year 2012-2013 levels.  Status:  Initially approved by the Legislature and placed on Special Appropriations Table to await funding. 
  • L.D. 835 (sponsored by Rep. Knight), An Act to Strengthen Maine's Economy Through Improvements to the Educational Opportunity Tax Credit (Opportunity Maine):  This Opportunity Maine bill was carried over from last session.  It was amended by and reported out of the Taxation Committee.  The amended majority report replaces the bill and provides that the tax credit applies to qualifying educational opportunity loans entered into before July 1, 2022.  Other adopted amendments limit the refundability of the tax credit to program participants who obtain an associate degree or bachelor's degree in science, technology, engineering or mathematics, and allow an individual who is domiciled in Maine but who is deployed for military service to be eligible for the tax credit as long as all the other qualifications are met.  Status:  Initially approved by Legislature and placed on Appropriations Table to await funding.

 

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