Common use of Stabilization Fund Clause in Contracts

Stabilization Fund. Therefore, Ffor the duration of the tuition agreement in Section 3.C above, and any renewals thereof, the New Newry SAU shall annually contribute a Stabilization Fundmake Non- Member Participation Payments to SAD 44 with the goal of enhancing the quality ofto create equity between Non-Member Participation and Member Participation in SAD 44, to enhance regional education in SAD 44. , and to stabilize the regional education system. Through the Stabilization Fund, the New Newry SAU will provide matching funds to SAD 44 as an incentive for the municipalities in SAD 44 to increase their locally raised contribution to the costs of education. Newry’s matching amount will be based on the amount of additional funds that each SAD 44 municipality annually raises for the costs of education in SAD 44, on a per pupil basis, over and above the rate of inflation as determined by the annual percentage increase in the CPI-U. The annual per pupil matching amount for each SAD 44 municipality shall be up to 10% of the per pupil amount that the municipality contributed to the SAD 44 budget in the year prior to the Effective Date. The goal of the Stabilization Fund is to bring each SAD 44 municipality’s per pupil contribution to the SAD 44 budget up to the current average municipal per pupil contribution (currently $13,035), as adjusted for inflation. As further incentive to SAD 44 municipalities to increase their per pupil contributions to the SAD 44 budget, the New Newry SAU’s per pupil contribution to the Stabilization Fund will be seven times the matching amount in the first year after the Effective Date, six times the matching amount in the second year after the Effective Date, five times the matching amount in the third year after the Effective Date, four times the matching amount in the fourth year after the Effective Date, three times the matching amount in the fifth and sixth years after the Effective Date, two times the matching amount in the seventh and eighth year after the Effective Date, and one time the matching amount in the ninth and tenth year after the Effective Date. For each fiscal year of the tuition agreement, and any renewals thereof, the New Newry SAU shall make a Non-Member Participation Payment, calculated for that year as (A – B), where A = [(Property Fiscal Capacity of Newry)/(Property Fiscal Capacity of SAD 44 + Property Fiscal Capacity of Newry)] X (the amount of the total SAD 44 school budget that must be raised by local taxes); [(amounts paid by the New Newry SAU for tuition paid to SAD 44 under the tuition agreement in Section 3 above) + (amounts paid by the New Newry SAU for costs of special education for Newry students at SAD 44 schools under the tuition agreement in Section 3 above) + (other costs paid by Newry to SAD 44 for educating Newry students at SAD 44 schools under the tuition agreement in Section 3 above)].

Stabilization Fund. Therefore, Ffor For the duration of the tuition agreement in Section 3.C above, and any renewals thereof, the New Newry SAU shall annually contribute a Stabilization Fundmake Non- Member Participation Payments Fund to SAD 44 with the goal of enhancing the quality ofto create equity between Non-Member Participation and Member Participation in SAD 44, to enhance regional of education in SAD 44. , and to stabilize 44 for the benefit of regional education system. Formatted: Indent: First line: 0.5" Through the Stabilization Fund, the New Newry SAU will provide matching funds to SAD 44 as an incentive for the municipalities in SAD 44 to increase their locally raised contribution to the costs of education. Newry’s matching amount will be based on the amount of additional funds that each SAD 44 municipality annually raises for the costs of education in SAD 44, on a per pupil basis, over and above the rate of inflation as determined by the annual percentage increase in the CPI-U. The annual per pupil matching amount for each SAD 44 municipality shall be up to 10% of the per pupil amount that the municipality contributed to the SAD 44 budget in the year prior to the Effective Date. The goal of the Stabilization Fund is to bring each SAD 44 municipality’s per pupil contribution to the SAD 44 budget up to the current average municipal per pupil contribution (currently $13,035), as adjusted for inflation. As further incentive to SAD 44 municipalities to increase their per pupil contributions to the SAD 44 budget, the New Newry SAU’s per pupil contribution to the Stabilization Fund will be seven times the matching amount in the first year after the Effective Date, six times the matching amount in the second year after the Effective Date, five times the matching amount in the third year after the Effective Date, four times the matching amount in the fourth year after the Effective Date, three times the matching amount in the fifth and sixth years after the Effective Date, two times the matching amount in the seventh and eighth year after the Effective Date, and one time the matching amount in the ninth and tenth year after the Effective Date. For each fiscal year of the tuition agreement, and any renewals thereof, the New Newry SAU Stabilization Fund shall make a Non-Member Participation Payment, calculated for that year as (A – B), where A = [be 100% of the amount equal to (Property Fiscal Capacity of Newry)/(Property Newry divided by (Property Fiscal Capacity of SAD 44 + Property Fiscal Capacity of Newry)] X ) multiplied by (the amount of the total SAD 44 school budget that must be raised by local taxes); [(taxes minus amounts paid by the New Newry SAU for (i) tuition paid to SAD 44 under the tuition agreement in Section 3 above, (ii) + (amounts paid by the New Newry SAU for costs of special education for Newry students at SAD 44 schools under the tuition agreement in Section 3 above, and (iii) + (other costs paid by Newry to SAD 44 for educating Newry students at SAD 44 schools under the tuition agreement in Section 3 above)].