An Act Regarding Unallocated Balances In A School Administrative Unit School Budget

LD 1103 permanently increases the threshold for leftover school budget funds from 5% to 9% of the previous year's total budget. School districts must now use any unspent funds exceeding 9% to reduce the state and local share of funding for the next year, replacing the current 5% rule. Districts may still carry forward and spend such excess funds over a three-year period. This change applies to all public school districts in Maine.