Maine Legislature, Session 121, LD 1167
Committee: Appropriations and Financial Affairs
Sponsors: KAELIN, WESTON, BERRY, CROSTHWAITE, JOY, SHERMAN, TARDY

Legislative Document 
No. 1167 
H.P.864 
House of Representatives, March 5, 2003 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Restrict an Increase in the Growth of the State Budget to 
No Greater than 75% of the Rate of Growth of Per Capita Income 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative KAELIN of Winterport. 
Cosponsored by Senator WESTON of Waldo and 
7J/~ 
1?7.17ltU~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BERRY of Belmont, CROSTHWAITE of Ellsworth, DUGA Y of Cherryfield, 
JOY of Crystal, McKENNEY of Cumberland, SHERMAN of Hodgdon, TARDY of Newport. 
Printed on recycled paper 
Constitutional amendment. 
Resolved: 
Two 
thirds 
branch 
of 
the 
Legislature 
concurring, 
that 
the 
amendment to the Constitution of Maine be proposed: 
Constitution, Art. IV, Part Third. §24 is enacted to read: 
of 
each 
following 
Section 24. 
Limitation on growth of state budget. 
The 
Legislature shall establish a General Fund expenditure ceiling 
that limits the growth of General Fund appropriations, excluding 
federal funds received by the General Fund, to 75% of the growth 
in statewide personal income in the prior calendar year. 
No 
appropriations in excess of this ceiling may be authorized during 
any legislative session unless the Legislature, by a 2/3 vote of 
the entire elected membership of both Houses, 
sets forth the 
dollar amount and the rate by which the ceiling will be exceeded 
and the reasons therefor. 
Any amount of General Fund revenues 
that exceeds the limit on General Fund expenditures established 
in this section must be used as follows: 
1/3 of the amount must 
be transferred to reduce the unfunded liabilities of the Maine 
State Retirement System; 
1/3 of the amount must be transferred 
to a budget stabilization fund; and 113 of the amount must be 
returned to the taxpayers of the State of Maine. 
In the event 
that 
the 
unfunded liability is 
eliminated, 
that 
portion 
of 
revenue must be egually divided between the other 2 purposes. 
; and be it further 
Constitutional referendum procedure: form of question: effective 
date. Resolved: 
That 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 election, at a statewide election, on the Tuesday 
following the first Monday of November following the passage of 
this resolution, to vote upon the ratification of the amendment 
proposed in this resolution by voting upon the following question: 
"Do 
you 
favor 
amending 
the 
Constitution 
of 
Maine 
to 
establish a ceiling that limits the growth in state spending 
to 75q,o of the growth in statewide personal income 
in the 
prior 
calendar 
year, 
to 
require 
a 
2/3 
vote 
of 
the 
Legislature to approve General Fund expenditures that exceed 
this 
ceiling 
and 
to 
require 
that 
surplus 
funds 
be 
distributed in equal parts to the unfunded liability of the 
Maine State Retirement System, 
to 
a 
budget stabilization 
fund and to the voters?" 
The legal 
vote by ballot 
cross or check 
voters of each city, town and plantation shall 
on this question and designate their choice by a 
mark placed within the corresponding square below 
Page l-LR0957(1) 
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 amendment, the Governor shall proclaim 
that fact without delay and the amendment becomes part of the 
Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: 
That 
the 
Secretary of State shall prepare and furnish to each city, town 
and plantation all ballots, returns and copies of this resolution 
necessary to carry out the purposes of this referendum. 
SUMMARY 
This constitutional resolution establishes a ceililng on the 
growth of General Fund expenditures to limit the growth in state 
spending to 75% of the growth in statewide personal income in the 
prior calendar year, requires a 2/3 vote of the Legislature to 
approve General Fund expenditures that exceed this ceiling and 
requires that surplus funds be distributed in equal parts to the 
unfunded 
liability 
of 
the 
Retirement 
System, 
to 
a 
budget 
stabilization fund and to the voters.