Maine Lawmakers Seek to Reform Inequitable School Funding Formula

Education Committee introduces bill based on researcher recommendations to update the state's complex school funding model.

Published on Feb. 11, 2026

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The Maine Legislature's Education and Cultural Affairs Committee voted to introduce a bill that would overhaul the state's school funding formula, which lawmakers, school leaders, and researchers have long criticized as inequitable. The bill incorporates major changes recommended by the nonpartisan Maine Educational Policy Research Institute, including aligning regional cost-of-living adjustments with minimum salaries, factoring community poverty rates into local funding calculations, and reforming the special education component of the formula.

Why it matters

Maine's current school funding formula has been a source of frustration for over a decade, with concerns that it unfairly distributes state aid and fails to accurately reflect the modern costs of education. This proposed reform aims to make the formula more equitable and reflective of districts' true needs and ability to contribute local funding.

The details

The Education Committee's bill would implement four key changes recommended by the MEPRI study: 1) Basing regional cost adjustments on updated cost-of-living data and minimum salaries rather than outdated averages; 2) Incorporating a 10% factor for community poverty rates when calculating a district's local 'ability to contribute'; 3) Updating parts of the formula related to transportation, technology, and instructional staff to reflect modern educational needs; and 4) Shifting special education funding to a regional collaborative model to address the formula's current bias toward wealthier districts.

  • The MEPRI study was commissioned by the Legislature in 2024.
  • The MEPRI recommendations were presented to lawmakers last week.
  • The Education Committee voted on Wednesday to introduce a bill based on the MEPRI recommendations.

The players

Mattie Daughtry

Senate President, D-Brunswick.

Amy Johnson

Co-director of the Maine Educational Policy Research Institute.

Sarah Lentz

Chair of the Portland School Board.

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What they’re saying

“There could not be a clearer indicator that this funding formula is not working the way that it was intended, and we need rapid changes to that.”

— Sarah Lentz, Chair, Portland School Board (pressherald.com)

What’s next

A public hearing on the bill has not yet been scheduled, but the committee's action comes as districts across Maine are beginning their budgeting process for the next fiscal year. The Portland School Board plans to take the message of the formula's inadequacies to state lawmakers in Augusta.

The takeaway

This proposed reform of Maine's school funding formula aims to make the distribution of state aid more equitable by better accounting for regional cost differences, community poverty levels, and the modern costs of education - changes that could have a significant impact on districts across the state.