An Act To Establish a New Method of Determining the State Budget
Maine Legislature, Session 121, LD 1078
Committee: Appropriations and Financial Affairs
Sponsors: JOY, BERRY, CARR, HEIDRICH, LEWIN, ROSEN, VAUGHAN, DAVIS
Amends: 5 MRSA §1665, 5 MRSA §1666, 5 MRSA §1666-A

Legislative Document 
No.t07S 
H.P.796 
House of Representatives, March 4,2003 
An Act To Establish a New Method of Determining the State Budget 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative JOY of Crystal. 
/J1~ 
1?1·711P£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representati ves: ANDREWS of York, BERRY of Belmont, CARR of 
Lincoln, HEIDRICH of Oxford, LEWIN of Eliot, ROSEN of Bucksport, VAUGHAN of 
Durham, Senator: DAVIS of Piscataquis. 
Printed on m;ycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §1665. sub-§I. as enacted by PL 198 S' , c. 50 L 
Pt. p, §13, is amended to read: 
1. 
Expendi ture 
and 
appropriation 
requirements. 
On 
I 
before September 1st of the eVeB-BaffiSeFea odd-number~d years, all 
departments 
and 
other 
agencies 
of 
the 
State 
Government 
and 
corporations and associations receiving or desiring to rece i Vp 
state funds under the provisions of law shall prepare, in the 
manner prescribed by and on blanks furnished them by the State 
Budget Officer, 
and submit to the officer estimates of their 
expenditure and appropriation requirements for each fiscal year 
of the ensuing biennium contrasted with the corresponding figures 
of the last completed fiscal year and the estimated figures for 
the current fiscal year. The expenditure estimates sba±± must be 
classified to set forth the data by funds, organization units, 
character and objects of expenditure. The organization units may 
be subclassified by functions and activities, or in any other 
manner, at the discretion of the State Budget Officer. 
Sec. 2. 5 MRSA §1665, sub-§7, as repealed and replaced by PL 
1999, c. 127, Pt. A, §6 and affected by §7, is amended to read: 
• 
General Fund and Highway Fund revenue and expenditure 
forecasts. 
By September 30th of each eVeB-BtlFRSeFea odd-numbereel 
year, the State Budget Officer shall prepare and deliver 
~ report 
to the Governor, the Legislature and the joint standing committee 
of the Legislature having jurisdiction over appropriations anel 
financial 
affairs 
containing 
a 
forecast 
of 
revenue 
anel 
expenditures 
for 
the 
following 
biennium. 
The 
forecast 
m\\st-
assume the continuation of current laws and include reasonable 
and predictable estimates of growth in revenues and expenditures 
based 
on 
national 
and 
local 
trends 
and 
program 
operations. 
General 
Fund 
and 
Highway 
Fund 
revenue must 
be 
forecasted 
by 
income 
source 
as 
provided 
in 
chapter 
15l-B. 
Expenditure 
forecasts for the General 
Fund and the Highway Fund must 
be 
forecasted on the basis of current law and assumed inflatioll 
var iables related to program operations. 
The forecas t 
for the 
Generc.l Fund and the Highway Fund must be presented ill a budqe t 
fund 
flow statement 
and 
a 
comparative statement showing each 
income source for revenue projections and expenditure estimates 
for each major program category. 
Sec. 3. 5 MRSA §1666. first 11. as amended by PL 199J, 
" 
7()1, 
Pt. R, §l, is further amended to read: 
The Governor-elect or the Governor, with the assistance of 
the State Budget Officer, 
shall 
review the budget estimates, 
al ter ing, 
revising, 
increasing or decreasing the 
i terns of the 
Page l-LRl093(1) 
estimates as may be determined necessary in view of the needs of 
the various departments and agencies and the total anticipated 
income of the State Government during the ensuing biennium. 
This 
review must cover all budgets regardless of source of funds. 
including. but not limited to, budgets related to the Highway 
fund, the federal Revenue Sharing Fund and other special revenue 
funds. 
The 
State 
Budget 
Officer, 
at 
the 
direction 
of 
the 
Governor-elect or the GovernorL 
shall then prepare a state budget 
document in the form required by law. 
The Governor-elect or the 
Governor is fully responsible for all budgetary recommendations 
made to the Legislature. 
The Governor shall transmit the budget 
document to the Legislature not later than the Friday following 
the first Monday in JaR~aFY December of the fiFst second regular 
legislative 
session. 
At 
that 
time 
the 
Governor 
shall 
also 
transmi t 
any biennial budget bills that authorize appropriations 
or allocations in the upcoming biennium that the Governor may 
wish to propose as well as any emergency bills that authorize 
additional appropriations or allocations in the current fiscal 
year that the Governor may wish to propose. 
A Governor-elect 
elected to 
a 
first term of office shall transmit the budget 
document to the Legislature not later than the Friday following 
the first Monday in ~e~F~aFY January of the fiFst second regular 
legislative session. 
At that time the Governor-elect shall also 
transmit any biennial budget bills that authorize appropriations 
or allocations in the upcoming biennium that the Governor may 
wish to propose as well as any emergency bills that authorize 
adc1itional appropriations or allocations in the current fiscaJ 
year that the Governor may wish to propose. 
Sec. 4. 5 MRSA §1666-A. as enacted by PL 1995, c. 113. §1. 
.is 
amended to read: 
§1666-A. Enactment of budget 
The 
Legislature 
shall 
review 
a 
biennial or 
supplemental 
budget submitted to it in accordance with this chapter and enact 
a budqet no later than 30 days prior to the date of adjournment 
prescribed in Title 3. section 2, except that, during the first 
year in office of a Governor-elect, the Legislature shall enact a 
budget no later than the first Friday in J~Re April. 
Sec. 5. Application. 
For the fiscal year beginning '_'ll July L. 
2005. 
the 
budget 
of 
the 
State 
must 
provide 
for 
a 
complete 
financial plan for one fiscal year. 
Those sections of this Act 
that amend the Maine Revised Statutes, Title 5, sections 1665. 
1666 and l666-A take effect July 1, 2006. 
SUMMARY 
This bill shifts the start of the fiscal biennium for the 
state budget from the first regular session of the Legislature to 
the second regular session of the Legislature, beginning for the 
fiscal year that begins on July 1, 2006. 
This bill also provides 
that the state budget beginning on July 1, 2005 is a one-year 
budget.