Projected $13 Million Cost for Maine Schools in First 6 Months of Paid Family Leave Program
Maine’s new Paid Family and Medical Leave Program will result in budget increases for school districts across the state. This program still two years away from its launch stage, is estimated to cost around $13 million in its first six months. To accommodate for this, school districts are planning to incorporate the added cost into their spending plans for the upcoming budget year. Employers are required to contribute 1% of their employee payroll to the state’s Paid Family and Medical Leave system from January 2025. School district officials have expressed concern about the marked increase to their upcoming budgets and reported receiving limited guidance from the state on budget management or the potential impact on taxpayers. Howard Tuttle, superintendent of Somerville-based Regional School Unit 12, mentioned that the district is planning to add $120,000 into its upcoming budget to accommodate for the new program costs. Maine School Management Association is working to provide as much information as possible to superintendents to help them manage this new state law’s impact. School Administrative District 11 officials in Gardiner have projected the cost of the program for their 500-employee payroll to be about $180,000. These costs also include hiring substitute teachers due to extended leave times for employees. Steve Bailey, executive director of the Maine School Management Association, said they continue to gather information as they await draft rules from the overseeing authority. Meanwhile, The Department of Labor is hosting online listening sessions for the public to gain more insight into the law.