Appendix A - Budgets

These are preliminary cost estimates for each strategy. These estimates will change as each strategy is implemented and more is learned from actual experience. Please refer to the strategy narrative for information on the scope of the program.

Maine's Promise Scholarship Program

Estimated costs are based on several variables, including the number of students participating and their level of need. Based on the information provided on each student's FAFSA, the following formula will determine the amount of Maine Promise Student Scholarship to be awarded to each student:

Cost of Attendance determined by each institution's financial aid office
(Less) Expected Family Contribution (EFC)
(Less) Waivers, Scholarships, Grants, & Work Programs
= Maine's Promise Scholarship = unmet need 'gap'

The cost estimates below are based a program for students whose family income is at or below 200% of poverty. Please refer to the program narrative for more detail on number of students served. The year 4 costs are the annual expenses going forward.

Maine Early College Initiative

The budget impacts of this strategy relate most directly to the cost of enrollment in collegiate-level courses, and the support systems that need to be in place at the colleges to ensure that a student's first experiences with college-level learning are successful.

To date, Maine's piloted early college opportunities range in costs depending on the institution, the number and types of courses taken, and the accompanying fees. These models also have included resources for student support at the college.

Declining enrollments in Maine's high schools will also impact future costs. It is much more likely that a variety of models will be explored and that high schools and colleges will work through the policy and tuition issues to more completely share and reduce expenses. In order for this to be a truly statewide initiative for all high school students, we need to figure out how to incorporate these policy and tuition issues into state and local budgets.

In the next two years, foundation support will be sought to expand Maine's pilot programs, thereby giving us better information upon which to project costs. Using current data, we project that, by year three, about $3.425 million will be needed to deliver to the program statewide to 7500 students: if 25% of the 30,000 high school juniors and seniors take a three-credit course at an average negotiated cost of $250, the dollar estimate is $1.875 million; in addition, about $1.550 million is needed to ensure that each of the state's 31 public and private colleges are able to provide professional counseling staff to assist students.

Maine College Transition Initiative

This budget estimate envisions high quality college transitions programming at 30 adult education programs, at least one of which would be which would be located in each Superintendent Region, with additional programs in regions with larger populations. Each funded program would include outreach to other adult education programs as part of their program with the goal of impacting all 126 adult education programs in Maine. Outreach might include visiting counselors, off-site classes, or distance learning, with special emphasis on the use of ATM.

This program is based on a model piloted in Maine by the Nellie Mae Foundation and includes: needs assessment, instruction and counseling, academic remediation and prerequisite courses, career advising, college skills workshops, field trips to campus, placement testing and assistance with application and financial aid process, staffing with personnel clearly identified with the project and provided with quality staff development, formal coordination with post-secondary partners, mentoring and follow-up after enrollment, and program evaluation.

First year costs would include the addition of a position at the Maine Department of Education, which would remain for the ten years. In the second year, ten sites would be started and supported for 5 years: $20,000 for the first two years, $15,000 in Year 3, $10,000 in Year 4, and $5,000 in Year 5. In the third-sixth program years, 5 sites would be added each year using the same schedule of funding as above. The phase out of the initial 5-year funding would be offset by an increase in registration fees and other educational funding sources.

Funding for this program averages $290,000 per year for the ten years, peaking in years 5 and 6.

College for ME Employer Initiative

The cost of the 50% tax credit in lower tax revenue may be up to $3.75 million per year. This figure is based on 10,000 students earning degrees - 50% AA degrees and 50% BA degrees over a decade, at a per credit cost based on the average cost of UMS and MCCS. This figure may be high because it assumes that every employer will take advantage of the tax credit (which would not be the case for government/non-profit employers, S corporations, etc.), and that every student will need the full compliment of 2/4-year courses (not the case since many workers will have completed some college).

An existing statewide organization will administer and deliver the program, overseen by an advisory board. An annual operating budget of $150,000 - $200,000 would support two full time staff and expenses. These funds would be raised privately.

College for ME Campaign

The scope of the campaign is still under discussion. Preliminary estimates are $2 million for a five year campaign. These funds would be raised privately.