Maine Legislature, Session 121, LD 1167
Committee Amendment CA_A_H582 (House)

COMMITTEE 
AMENDMENT 
" If" 
to 
H. P. 
864, 
L.D. 
1167, 
"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'lt. of the Rate of Growth of Per Capita Income" 
Amend 
the 
resolution 
by 
striking 
out 
the 
title 
and 
substituting the following: 
'RESOLUTION, Proposing an Amendment to the Constitution of Maine 
To Restrict an Increase in the Growth of the State Budget' 
Further 
amend the resolution by striking out everything 
after the title and before the summary and inserting in its place 
the following: 
'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 a percentage rate 
equal to 2/3 of the average real personal income growth rate plus 
2/3 of the average forecasted inflation rate. 
As used in this 
section. 
"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 is 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 
Page l-LR0957(2) 
COMM/rrEE AMENDMENT 
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.. 
~~; . 
,J. , 
COMMITTEE AMENDMENT "fI" to H.P. 864, L.D. 1167 
Index for that calendar year. 
As used in this section, "average 
forecasted inflation rate" means the average forecasted change in 
the 
Consumer 
Price 
Index 
underlying the 
revenue 
projections 
developed by a revenue forecasting committee. 
As used in this 
section, "Consumer Price Index" means the average over a l2-month 
period of the National 
Consumer Price 
Index, 
not seasonally 
adjusted, published monthly by the United States Department of 
Labor, Bureau of Labor Statistics, 
designated as the "National 
Consumer Price Index for All Urban Consumers - United States City 
Average." 
No appropriations in excess of this ceiling may be 
authorized during any legislative session unless the Legislature, 
by a 213 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. 
Twenty percent of the 
amount of General Fund revenues that exceeds the limit on General 
Fund expenditures established in this section must be transferred 
to a capital construction and improVements reserve fund up to a 
maximum of $50,000,000. 
Eighty percent of the amount of General 
Fund revenues that exceeds the limit on General Fund expenditures 
established in this section must be transferred to a 
budget 
stabilization fund that may receive transfers up to a maximum of 
8% of the previous year's appropriation. 
Any excess amounts of 
General Fund revenues not transferred to a capital construction 
and improvements reserve fund or a budget stabilization 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. 
In the event any or all of the above obligations are 
satisfied, any excess amounts of General Fund revenues must be 
returned to the taxpayers of this State. 
; 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 
a 
percentage rate equal to 2/3 of the average real 
personal 
income 
growth 
rate 
plus 
2/3 
of 
the 
average 
forecasted inflation rate, to require a 
2/3 vote of the 
COMM/rrEE AMENDMENT 
; 
, 
\J .. 
~ i: 
COMMITTEE AMENDMENT "fr, to H.P. 864, L.D. 1167 
Legislature to approve General Fund expenditures that exceed 
this 
ceiling 
and 
to 
require 
that 
surplus 
funds 
be 
distributed first to a capital construction and improvements 
reserve fund and a budget stabilization fund; 2nd to reduce 
the 
unfunded liabilities of 
the 
Maine 
State Retirement 
System and to conform Maine tax law with the United States 
Internal Revenue Code; and 3rd to the people of this State?" 
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 the 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 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.' 
This 
manner 
in 
determined. 
amendment is 
which 
the 
SUMMARY 
the minority report and it 
General 
Fund 
expenditure 
FISCAL :\OTE REQURED 
(See attached) 
changes 
ceiling 
the 
is 
COMM/rrEE AMENDMENT 
Referendum Costs 
Approved: 06112/03 ~ac:.. 
I 
Office of Fiscal and Program Review 
LD 1167 
RESOLUTION, Proposing an Amendment to the Constitution of Maine 
To Restrict an Increase in the Growth of the State Budget 
LR 0957(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Appropriations and Financial Affairs 
Fiscal Note Required: Yes 
Minority Report 
Fiscal Note 
Current biennium cost increase - General Fund 
MonthlY ear 
Election Type 
Question 
Nov-03 
General 
Referendum 
Length 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the 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 
If approved by the voters, this resolution is likely to result in the reduction of future General Fund expenditure levels; 
the amounts can not be determined at this time. 
LR0957(2) - Fiscal Note - Page 1 of 1