Report of Findings on the Student Transportation Cost Component of the EPS Funding Model

Background Prior to 2005-06, Maine used an expenditure-reimbursement model for funding transportation costs. School administrative units annually submitted their transportation expenditure to the State, and the school administrative units (SAUs) were reimbursed for a portion of these expenditures based on an ability-to-pay formula. Beginning 2005-06, Maine implemented Essential Programs and Services (EPS), a cost-based school funding model based on two fundamental premises. First, there must be adequate resources in each Maine SAU and school to achieve desired outcomes. In transportation, desired outcomes include safety, reasonable ride times by age group, meeting all student transportations needs including special needs, and others. Second, there must be equity in the distribution of these adequate resources among Maine SAUs. Equity means similar school administrative units should be treated similarly in the school funding formula, and dissimilar school administrative units should be treated dissimilarly