Maine Legislature, Session 121, LD 1629
Committee Amendment CA_C-HA_H_H620 (House)
Amends: 20-A MRSA §6051, 20-A MRSA §15617, 30-A MRSA §952-A

HOUSE 
AMENDMENT 
.. /I .. 
to COMMITTEE 
AMENDMENT "c" to H.P. 
1209, L.D. 1629, "RESOLUTION, Proposing a Competing Measure under 
the Constitution of Maine To Create Municipal Service Districts 
To Reduce the Cost of Local Government, To Provide Property Tax 
Relief and To Increase Economic Competitiveness" 
Amend the amendment by striking out the substitute title and 
replacing it with the following: 
'RESOLUTION, Proposing a Competing Measure under the Constitution 
of Maine To Create Budget Caps on Local and County Governments, 
Reduce 
the Cost of Local 
Government 
through Increased State 
Education Funding and Provide Property Taz Relief' 
Further 
amend the 
amendment in Part A in section 1 
in 
paragraph B by striking out all of subparagraphs (1) to (5) (page 
2, lines 1 to 12 in amendment) and inserting in their place the 
following: 
'(I) 
For fiscal year 2005-06, the target is 49~~. 
(2) 
For fiscal year 2006-07, the target is 49T69~ 52~. 
(3) 
For fiscal year 2007-08, 
the target is 
49T9G~ 
51....ll. 
(4) 
For fiscal year 
2008-09, 
the target is 
49T1§~ 
52,25'\" 
(5) 
For fiscal year 2009-10 and succeeding years, the 
target is 9G~ ~, 
, 
HOUSE AMENDMENT 
HOUSE 
AMENDMENT 
• .JI" to COMMITTEE 
AMENDMENT "C" to H.P. 
L.D. 1629 
1209, 
Further amend the amendment in Part A in section 2 in that 
part designated "§15671-A," in subsection 2 in paragraph B by 
striking out all of subparagraphs (1) to (5) (page 3, lines 21 to 
in amendment) and inserting in their place the following: 
, (1) 
For the 2005 property tax year« the full-value 
education mill rate is the amount necessary to result 
in a 48.1~ local share in fiscal year 2005-06; 
(2) 
For the 2006 property tax year. 
the full-value 
education mill rate is the amount necessary to result 
in a 48\ local share in fiscal year 2006-07; 
(3) 
For the 2007 property tax year. 
the full-value 
education mill rate is the amount necessary to result 
in a 47.9~ local share in fiscal year 2007-08; 
(4) 
For the 2008 property tax year. 
the full-value 
education mill rate is the amount necessary to result 
in a 47.75~ local share in fiscal year 2008-09; and 
(5) 
For 
the 
2009 property tax year 
and 
subseguent 
years. the full-value education mill rate is the amount 
necessary to result in a 47. 6~ local share in fiscal 
year 2009-10 and subseguent years.' 
Further amend the amendment in Part A in section 2 in that 
part designated "S15671-A," by striking out all of subsection 3. 
Further amend the amendment in Part B by inserting before 
section 1 the following: 
. Sec. B·1. 20·A MRSA §6051, sub.§!, 1/E, as amended by PL 2001, 
c. 344, §7, is further amended to read: 
E. 
A determination as to whether the school administrative 
uni t has complied with applicable 
prov~s~ons of the School 
Finance Act of 1985 and the School Finance Act of 1995; aRe 
Sec. B·2. 20·A MRS A §6051, sub·§l, F, as enacted by PL 1985. 
c. 797, §36, is amended to read: 
F. 
Any other information whieh ~ 
the commissioner may 
require ... ~ 
Sec. B·3. 20·A MRSA §6051, sub·§l.,G is enacted to read: 
HOUSE AMENDMENT 
~.o,s. 
HOUSE 
AMENDMENT 
• .;/" to COMMITTEE 
AMENDMENT 
"C" to H.P. 1209, 
L.D. 1629 
G. 
Any 
information necessary 
to 
determine 
whether 
the 
school administrative unit has exceeded the appropriation 
limitation established in section 15617. subsection 9. 
Sec. B-4. 20-A MRSA §6051, sub-§7 is enacted to read: 
7. 
Determination: report. 
The commissioner shall determine 
whether 
a 
school 
administratiye 
unit 
has 
exceeded 
the 
appropriation limitation established in section 15617. subsection 
and annually proyide a list of school administratiye units that 
haye exceeded that limitation to the Legislature. 
Sec. B-5. 20-A MRSA §15617, sub-§9 is enacted to read: 
9. 
School administration unit QP2ropriation limitation. 
Notwithstanding 
any 
other 
proYJ.uon 
of 
law. 
the 
following 
limitations apply to a school administratiye unit's appropriation 
based on fiscal years beginning on or after July I. ZOOS. 
A, 
For the purposes of this subsection. unless the context 
indicates otherwise. the following terms have the following 
meanings. 
(1) 
"Exceptional circumstances" means 
an unforeseen 
condition or conditions oyer which the school board has 
little or no control and does not mean new programs or 
program 
expansions 
that 
go 
beyond 
existing program 
criteria and operation. 
(2) 
"School administratiye unit appropriation" means 
the 
total 
school 
appropriation 
for 
the 
schoQl 
administratiye unit approyed under section 1561e. 
B. 
The total school administratiye unit appropriation for 
each fiscal year pf a school administratiye unit may not 
exceed the school administratiye unit appropriation of the 
preyious fiscal year mUltiplied by the limitation on the 
total 
General 
Fund 
appropriation described 
in Title 
5, 
section 1664. 
C. 
The amount der iyed under paragraph B may be exceeded 
only by the amount of additional costs or the lost revenue 
from the following exceptional circumstances: 
(1) 
Unfunded 
or 
underfunded 
new 
state 
or 
federal 
mandates; 
(2 ) 
Losses 
in state or 
federal 
revenues 
or other 
revenue sources; 
HOUSE AMENDMENT 
HOUSE 
AMENDMENT 
.. II" to COMMITTEE 
AMENDMENT "C" to H.P. 1209, 
L.D. 1629 
(3) 
Citizens' initiatives or referenda that require 
increased municipal spending; 
(4) 
Court orders or decrees that require additional 
school administratiye unit resources to comply with the 
orders or decrees; or 
(5) 
Sudden or significant increases in demand 
for 
existing school administratiye unit seryices that are 
not the result of school board actions that increase 
eligibility or increase benefits. 
In addition. 
the 
school board may 
designate exceptional 
circumstances 
that 
are 
not 
explicitly 
described 
in 
subparagraphs 
(1) 
to 
( 5) 
but 
meet 
the 
intent of 
this 
subsection. 
Sec. B-6. 30·A MRSA §910 is enacted to read: 
§910. 
County appropriation limitation 
Notwithstanding any other proyision of law. 
the following 
limitations apply to a county appropriation based on fiscal years 
beginning on or after July I. 2005. 
1. 
Definitions. 
For the purposes of this section. unless 
the context indicates otherwise. the following terms haye the 
following meanings. 
A. 
"Exceptional 
circumstances" 
means 
an 
unforeseen 
condition or conditions oyer which the county goyerning body 
that approyes appropriations has little or no control and 
does not mean new programs or program expansions that go 
beyond existing program criteria and operation. 
B. 
"County seryices appropriation" means the total amount 
of 
money 
raised 
and 
appropriated 
to 
pay 
for 
seryices. 
programs and public debt that is included in a 
county' s 
annual budget. 
2. 
Appropriation 
limitation. 
The 
total 
county 
appropriation for each fiscal year of a county may not exceed the 
county appropriation of the preyious fiscal year multiplied by 
the limitation on the total General Fund appropriation described 
in Title 5. section 1664. 
3. 
Esceptional circumstances. 
The 
amount derived under 
subsection 2 may be exceeded only by the amount of additional 
costs 
or 
the 
lost 
reyenue 
from 
the 
following 
exceptional 
circumstances: 
HOUSE AMENDMENT 
\\ott'· 
HOUSE 
AMENDMENT 
.. II .. to COMMITTEE 
AMENDMENT "c" to H.P. 
1209, 
L.D. 1629 
A. 
Unfunded or underfunded new state or federal mandates; 
B. 
Losses in state or federal revenues or other revenue 
sources; 
C. 
Citizens' 
initiatives 
or 
referenda 
that 
require 
increased municipal spending; 
D. 
Court 
orders 
or 
decrees 
that 
require 
additional 
municipal resources to comply with the orders or decrees; or 
E. 
Sudden or significant increases in demand for existing 
county services that are not the result of municipal county 
actions 
by 
the 
county governing body that approves 
the 
budget that increase eligibility or increase benefits. 
In addition. the county governing body that approves the budget 
may designate exceptional circumstances that are not explicitly 
described in paragraphs A to E but meet the intent Qf this 
section. 
Sec. B-7. 30-A MRSA §952-A, sub-§I, "C and D, as enacted by 
PL 2003, c. 178, §4, are amended to read: 
C. 
The 
independent 
auditor's 
report 
on 
the 
financial 
statements; aRe 
D. 
All 
financial 
statements 
and 
all 
other 
information 
required by governmental accounting and financial reporting 
standards ... .L.Jm.Q 
Sec. B-8. 30-A MRSA §952-A, sub-§I, 1JE is enacted to read: 
E. 
Information necessary to determine whether the county 
has 
exceeded the appropriation limitation established in 
section 910. 
Sec. 8-9. 30-A MRSA §952-A, sub-§2, as enacted by PL 2003, c. 
178, §4, is amended to read: 
2. 
Copies for distribution. 
Copies of the report must be 
deposited in the county commissioners' office or a 
convenient 
place of business for distribution to the public and must be 
distributed to each municipality in the county. 
A copy of the 
report must be provided to the Department of Audit. 
Sec. B-I0. 30-A MRSA §952-A, sub-§4 is enacted to read: 
HOUSE AMENDMENT 
HOUSE 
AMENDMENT 
L.D. 1629 
to COMMITTEE 
AMENDMENT 
"C" to H.P. 1209, 
4. 
Determination: report. 
The Department of Audit shall 
determine 
whether 
a 
county 
has 
exceeded 
the 
appropriation 
limitation established in section 910 and annually provide a list 
of 
counties 
that 
have 
exceeded 
that 
limitation 
to 
the 
Legislature. ' 
Further amend 
any 
nonconsecutive 
consecutively. 
the amendment by 
Part 
letter 
or 
relettering or renumbering 
section 
number 
to 
read 
SUMMARY 
This amendment levels out the proposed increases to state 
funding for kindergarten to grade 12 education from fiscal year 
2005-06 throuqh fiscal year 2009-10 so that each year's increase 
is the same, thereby providing more funding in early years than 
would be provided under the committee amendment. 
This amendment 
eliminates 
the 
prov~s~on 
from 
the 
committee 
amendment 
that 
permi ts a municipality to raise additional school funds beyond 
the municipal mill rate expectation by referendum beginning in 
fiscal 
year 
2009-10. 
The 
amendment 
also 
establishes 
an 
appropriation limitation for counties and school administrative 
units in order to have the same limitation apply to all state and 
local units of government. 
SPONSORED BY, ~d,rJ!~ 
(Representative McGO AN) 
TOWN: 
Pittsfield 
FI~CAL \OTE HEQl'lRED 
($('(- ;lllachrd) 
HOUSE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 08/20103 ;,t/?/Qe 
Office of Fiscal and Program Review 
LD 1629 
RESOLUTION, Proposing a Competing Measure under the Constitution 
of Maine to Create Municipal Budget Caps, Reduce the Cost of Local 
Government through Increased State Education Funding and Provide 
Property Tax Relief 
LR216Sn2) 
Fiscal Note for House Amendment '1/' to Committee Amendment "C" 
Sponsor: Rep. McGowan 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
$0 
2004-05 
Projections 
2005-06 
$0 
$44,468,969 
$0 
$44,468,969 
Projections 
2006-07 
$24,272,974 
$24,272,974 
This amendment increases the cost of the bill by $44,468.969 in fiscal year 2005-06 and $24,272,974 in fiscal year 2006· 
due to the change in the way the increased state funding for education is distributed over the 5-year period and the 
expansion of responsibilities to the Department of Audit. 
General Fund Summary 
Additional Appropriation needed to fund EPS In 
this proposal 
Additional Department of Audit appropriation 
Net General Fund Cost (Savings) 
2003-04 
$0 
$0 
$0 
LR2165( 12) - Fiscal Note - Page 1 of 1 
2004-05 
Projections 
2005-06 
$0 
$44,428,969 
$0 
$40,000 
$0 
$44,468,969 
Projections 
2006-07 
$24,192,974 
$80,000 
$24,272,974 
]'Iiet Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 08/20103 ~aC!. 
Office of Fiscal and Program Review 
LD 1629 
RESOLUTION, Proposing a Competing Measure under the Constitution 
of Maine to Create Municipal Budget Caps, Reduce the Cost of Local 
Government through Increased State Education Funding and Provide 
Property Tax Relief 
LR 2165(12) 
Fiscal Note for House Amendment if to Committee Amendment "C" 
Sponsor: Rep. McGowan 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
so 
2004-05 
$0 
$0 
Projections 
2005-06 
$44,468,969 
$44,468,969 
Projections 
2006-07 
$24,272,9-
$24,272,974 
This amendment increases the cost of the bill by $44,468,969 in fiscal year 2005-06 and $24,272,974 in fiscal year 2006· 
due to the change in the way the increased state funding for education is distributed over the 5-year period and the 
expansion of responsibilities to the Department of Audit. 
General Fund Summar} 
Additional Appropriation needed to fund EPS in 
this' proposal 
Additional Department of Audit appropriation 
Net General Fund Cost (Savings) 
2003-04 
$0 
$0 
$0 
LR2165( 12) - Fiscal Note - Page 1 of 1 
2004-05 
$0 
$0 
$0 
Projections 
2005-06 
$44,428,969 
$40,000 
$44,468,969 
Projections 
2006-07 
$24,192,974 
$80,000 
$24,272,974