AUGUSTA (AP) – Proposed state education spending of $1 billion takes Maine one step closer to its goal of contributing 55 percent of local education costs by 2009.

If adopted, the Education Department’s proposed budget for fiscal year 2007-08 would be $991 million, or 52.5 percent of local costs under the department’s 2007-08 budget plan. Last year’s budget was $914 million, or 50 percent.

Education Commissioner Susan Gendron and members of her department staff briefed the Board of Education.

Although the Maine Legislature has the final say on the budget, the department’s projections under the Essential Programs and Services formula are based on the state law widely known as LD1, said Jim Rier, head of the department’s management information team.

“It’s important to know the funding follows current EPS law that began two years ago and is now in the third year of that cycle,” Rier told the board. “This is not like it used to be. We now calculate the cost of education as it’s written in law.”

Based on department calculations, 72 percent of the state’s educational dollars are devoted to salaries, benefits, administration and operations. Another 20 percent is consumed by special education, vocational education, gifted and talented programs, and transportation.

The proposed budget took into account the $27,000 minimum teacher salary enacted by the Legislature. Nearly $2 million was set aside for local schools paying less than that to make up the difference. Also included in the budget is $11 million for the laptop program.

The increase in education costs come as enrollments continue to decline at a rate of about 3,000 children per year.

Maine served 204,2106 students in 2004 and is projected to serve 195,570 students next year, Rier said.

Rough State Planning Office estimates show enrollments bottoming out at 178,000 by 2012.

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Information from: Bangor Daily News, http://www.bangornews.com

AP-ES-12-14-06 1405EST