An Act To Clarify The Amount And Use Of Unallocated Balances In A School Administrative Unit Budget

LD 1518 clarifies how Maine school administrative units must use unspent budget funds. It requires that unallocated balances exceeding 5% of a school's previous year's budget must be spent on educational programs in the next year (or over a 3-year period), rather than reducing state funding. The bill removes temporary rules that previously applied only to fiscal years 2021-2025, making this requirement permanent for all future years. This directly affects school districts managing their annual budgets and unspent funds.