An Act to Limit the Growth of Government Spending LR0562(02)
Maine Legislature, Session 121, LD 1383
Committee Amendment CA_A_S283 (Senate)

COMMITTEE AMENDMENT "A" to S.P. 453, L.D. 1383, Bill, 
Act To Limit the Growth of Government Spending" 
"An 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
. Sec. I. 5 MRS A c. 52 is enacted to read: 
CHAPTER 52 
STATE GOVERfiMENT EXPENDI'11JRE LIMITS 
§561. 
Definitions 
As 
used 
in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Average forecasted inflation rate. 
"Average forecasted 
inflation rate" 
means 
the 
average 
forecasted 
change 
in 
the 
Consumer Price Index underlying the revenue projections developed 
by the Reyenue Forecasting Committee pursuant to chapter l51-B. 
2. 
Average real personal income growth rate. 
"Average real 
personal income growth rate" means the average for the prior 10 
calendar years, ending with the most recent calendar year for 
which data are available, 
of the percent change in personal 
income in this State for a calendar year, as estimated by the 
United 
States 
Department 
of 
Commerce, 
Bureau 
of 
Economic 
Analysis, less the percent change in the Consumer Price Index for 
that calendar year. 
Page l-LR0562(2) 
COMMITTEE AMENDMENT 
\'-l;,. 
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~. ,,. , . 
COMMITTEE AMENDMENT "A" to S.P. 453, L.D. 1383 
3. 
Consmner Price Index. 
"Consumer Price Index" has the 
same meaning as in Title 36, section 5402, subsection 1. 
§562. 
State Government expenditure limits 
1. 
State spending limit. 
Except as provided in subsection 
2, 
the 
maximum 
annual 
percentage 
increase 
in 
General 
Fund 
expenditures, excluding federal funds received by the General 
Fund, 
may not exceed 213 of the average real personal income 
growth rate plus 2/3 of the average forecasted inflation rate. 
2. 
Two-thirds 
vote 
reCJ]1ired. 
State 
Government 
may 
authorize an expenditure in excess of the limit established in 
subsection 1 only upon a 
vote of 
of the entire elected 
membership of each House of the Legislature. 
§563. 
Disposition of excess revenue 
If the State collects revenue that exceeds the expenditure 
limit established for that fiscal year in section 562, subsection 
1, as the first priority before any other transfer, the State 
Controller shall at the close of the fiscal year transfer 20% of 
the amount to the Capital Construction and Improvements Reserve 
Fund 
established 
in 
section 
1516-A 
up 
to 
a 
maximum 
of 
$50,000,000. 
Eighty percent of 
the 
amount 
of 
revenue 
that 
exceeds the expenditure limit established for that fiscal year in 
section 562, subsection 1 must be transferred to an emergency 
reserve fund, which may receive transfers up to a maximum of 8% 
of the previous fiscal year's total General Fund appropriations. 
Any excess amounts of General Fund revenues not transferred to 
the Capital Construction and Improvements Reserve Fund or an 
emergency reserve fund must be used as follows; 
75% of the 
amount must be transferred to reduce the unfunded liabilities of 
the Maine State Retirement System; and 25% of the amount must be 
transferred to a tax conformity reserve fund established for the 
purpose of conforming tax law in this State with the United 
States Internal Revenue Code of 1986. 
In the event all of the 
above obligations are satisfied, any excess amounts of General 
Fund revenues must be returned to the taxpayers of this State. 
Sec. 2. Statutory referendum procedure; submission at statewide 
election; form of question; effective date. 
This Act takes effect when 
approved only for the purpose of permitting its submission to the 
legal voters of the State at a statewide election held on the 
Tuesday following the first Monday of November following passage 
of this Act. 
The municipal officers of this State shall notify 
the inhabitants of their respective cities, towns and plantations 
to meet, in the manner prescribed by law for holding a statewide 
COMMITTEE AMENDMENT 
ci-t:'.":. 
t~,,,, 
'. 
COMMITTEE AMENDMENT "A" to S.P. 453, L.D. 1383 
election, to vote on the acceptance or rejection of this Act by 
voting on the following question: 
"Do 
you 
favor 
placing 
a 
limit 
on 
the 
maximum 
annual 
percentage 
increase 
in 
State 
Government 
expenditures, 
requiring a 2/3 vote of the Legislature to approve state 
General 
Fund 
expenditures 
that 
exceed 
this 
limit 
and 
requiring that surplus 
funds be placed in an 
emergency 
reserve fund or returned to the citizens?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed within a corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. 
The Governor shall review 
the returns and, if it appears that a majority of the legal votes 
are cast in favor of the Act, the Governor shall proclaim that 
fact without delay, and the Act takes effect 30 days after the 
date of the proclamation. 
The Secretary of State shall prepare and furnish to each 
city, town and plantation all ballots, returns and copies of this 
Act necessary to carry out the purposes of this referendum.' 
SUMMARY 
This 
amendment is the minority report. 
It changes 
the 
manner in which the maximum annual percentage increase in General 
Fund expenditures is determined and removes the local government 
expenditure limit. 
FISCAL NOn H.H)URED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/12/03 ~ae 
l2lst Maine Legislature 
Office of Fiscal and Program Review 
LD 1383 
An Act to Limit the Growth of Government Spending 
LR0562(02) 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Appropriations and Financial Affairs 
Fiscal Note Required: Yes 
Minority Report 
Fiscal Note 
Current biennium cost increase - General Fund 
Referendum Costs 
MonthlY ear 
Election Type 
Question 
Length 
Nov-03 
General 
Referendum 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the gener 
election in November. Tfthe number or size of the referendum questions increases the ballot length, an additional 
appropriation of $8,000 or more may be required. 
Fiscal Detail and Notes 
The amended bill will limit General Fund expenditures to increases that do not exceed 2/3 of the average real personal 
growth rate plus 2/3 of the average forecasted inflation rate. The bill also specifies the disposition of General Fund 
revenue that exceeds the expenditure limit that is calculated each fiscal year. 
LR0562(2) - Fiscal Note - Page 1 of 1