Lawmakers made last-minute changes Thursday to a bill that would reform Maine’s fraught school funding formula after a fiscal note on the cost came back $25 million higher than expected.
The Education and Cultural Affairs Committee initially passed LD 2226 with broad support last month but agreed to review the language and consider amendments in an effort to bring potential costs down.
The amended version passed by a 10-2 margin, but some Republican lawmakers raised concerns about feeling rushed in the process. It now goes to the full Legislature.
The bill as amended makes major changes to Maine’s Essential Programs and Services formula, commonly known as EPS, that school leaders for years have argued is outdated and inequitable. The changes wouldn’t take effect until the 2027-28 fiscal year and are not a part of the ongoing state budget process.
In 2024, the education committee asked a nonpartisan research group to study and propose changes to the formula. That group, the Maine Educational Policy Research Institute, returned a report over the summer, which lawmakers then adapted into a committee bill. Two of its most significant provisions would integrate a district’s rate of economically disadvantaged students into the formula (rather than relying entirely on property tax valuations), and update an outdated model of regional salary adjustments.
The changes outlined in the amended bill will result in higher state subsidies for 247 of the state’s 262 school districts.
School leaders from around the state showed support for the bill during a public hearing, but had some concerns. The committee made several changes in response, which included removing any adjustments to the special education portion of the formula. Lawmakers also amended the bill to delay implementation until 2031 for school districts that will get less from the state.
Rep. Michael Brennan, D-Portland, said Thursday the committee expected the cost of the bill to be around $45 million, so members were shocked when it was closer to $70 million.
The increase originated from some provisions that were left over from an original version of the bill, including a change related to transportation payments, as well as a calculation error. Brennan submitted an amendment to remove the transportation language and address other issues, which would bring the total fiscal impact back down to $45 million, a legislative analyst said.

“It can be overwhelming, but I would stand very firmly in a place that this amendment is very reflective of the majority opinion and discussion of this committee,” Brennan said.
The meeting turned animated at times as minority committee members said they felt that the changes were rushed, and they wouldn’t be able to sell them to their caucus. Rep. Barbara Bagshaw, R-Windham, and Sen. James Libby, R-Standish, each voted no.
Co-Chair Kelly Murphy, D-Scarborough, encouraged the committee to move the bill forward.
“The two changes that we are making are the first changes in 20 years, (and) will make a significant benefit for two-thirds of the students of Maine,” she said, emphasizing that the amendment did not add any new material, only removed costs.
School leaders around the state have been eagerly awaiting passage of LD 2226 as they deal with their own budget processes, which have been especially tough this year.
Robbie Feinberg, spokesperson for the Maine School Superintendents Association, testified Thursday at the request of the committee, and said the latest amendment had the support of his members.
“We feel that this amendment is a very strong step forward,” he said.
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