An Act To Establish the Maine Taxpayers' Bill of Rights
Maine Legislature, Session 122, LD 1011
Committee: Taxation
Sponsors: ANDREWS, LEWIN, COURTNEY, PLOWMAN, BOWEN, CROSTHWAITE, JOY, KAELIN, NUTTING, TARDY
Amends: 5 MRSA §1664, 5 MRSA §1665, 5 MRSA §1710-F, 5 MRSA §13063-C, 25 MRSA §1612, 36 MRSA §3321

Legislative Document 
No. lOll 
S.P.351 
In Senate, February 24, 2005 
An Act To Establish the Maine Taxpayers' Bill of Rights 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator ANDREWS of York. 
Cosponsored by Representative LEWIN of Eliot and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: COURTNEY of York, PLOWMAN of Penobscot, Representatives: BOWEN of 
Rockport, CROSTHWAITE of Ellsworth, JOY of Crystal, KAELIN of Winterport, NUTTING 
of Oakland, TARDY of Newport. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §I507, last" as enacted by PL 1997, c. 24, Pt. 
C, §2, is repealed. 
Sec. 2. 5 MRSA §I5Il, as amended by PL 2005, c. 2, Pt. A, §1 
and affected by §14, is repealed. 
Sec. 3. 5 MRSA §I518-A, as enacted by PL 2005, c. 2, Pt. A, 
§4 and affected by §14, is repealed. 
Sec. 4. 5 MRSA §§1521 and 1522 are enacted to read: 
§1521. 
Maine Budget Stabilization Fund 
I. 
Establishment. 
The 
Maine 
Budget Stabilization Fund, 
referred to in this section as "the fund," is established and 
must be administered for the purposes identified in this section. 
2. 
Transfers 
to 
fund; 
limits. 
The 
fund 
may 
receive 
transfers by the State Controller of unappropriated surplus at 
the close of a fiscal year as provided in section 1995 and any 
other funds identified by law. 
The fund may not exceed 10% of 
the total General 
Fund 
revenues 
received in the 
immediately 
preceding fiscal 
year 
and 
may 
not 
lapse, 
but 
remains 
in 
a 
continuing carrying account to carry out the purposes of this 
section. 
The limit at the close of a fiscal year is based on the 
total General Fund revenues received in the fiscal year being 
closed. 
3. 
Use of fund. 
The Legislature may authorize transfers-L 
appropriations and allocations from the fund only to fund the 
costs of State Goyernment up to the expenditure limit calculated 
under section 1994 in years when state revenues are less than the 
amount necessary to finance the level of expenditure permitted 
under section 1994. 
4. 
Investment of funds; proceeds. 
The money in the fund 
may be invested as provided by law, with the earnings credited to 
the fund. 
At the close of every month during which the fund is 
at the 
10% 
limitation described in subsection 
2, 
the 
State 
Controller shall transfer the excess to the Tax Relief Reserve 
Fund established under section 1995. 
§1522. 
Maine Highway Budget Stabilization Fund 
I. 
Establishment. 
The Maine Highway Budget Stabilization 
Fund, referred to in this section as "the fund," is established 
and must be administered for the purposes identified in this 
section. 
2. 
Transfers to 
fund~~its. 
The 
fund 
may 
receive 
transfers by the State ControJ.ler of 
una.J.J&cj~.ted Highway Fund 
surplus at the close of a fiscal year as provided in section 1996 
and any other funds 
ide~ified by law. 
The fund may not exceed 
10% 
of 
the 
total 
Highway 
Fund 
revenues 
received 
in 
the 
immediately preceding fiscal year and may not lapse, but remains 
in a continuing carryin9- account to carry out the purposes of 
this section. 
The limit at the close of a fiscal year is based 
on the total Highway Fund revenues received in the fiscal year 
being closed. 
3. 
Use of fund. 
The Legislature may authorize transfers, 
appropriations and allocations from the fund only to fund the 
costs of the Highway Fund budget up to the expenditure limit 
calculated under section 1994 in years when Highway Fund revenues 
are less than the 
amount necessary to finance 
the level of 
expenditures permitted under section 1994. 
4. 
Investment of funds: proceeds. 
The money in the fund 
may be invested as provided by law with the earnings credited to 
the fund. 
At the close of every month during which the fund is 
~he 10% 
lim~ion described in subsection 
2, 
the State 
Controller shall transfer the excess to the Highway Fund Reserve 
Fund established under section 1996. 
Sec. 5. 5 MRSA c. 142, as enacted by PL 2005, c. 2, Pt. A, §5 
and affected by §14, is repealed. 
Sec. 6. 5 MRSA §1664. last 1[, as amended by PL 2005, c. 2, Pt. 
A, §6 and affected by §14, is further amended to read: 
The total General Fund appropriation for each fiscal year of 
the 
biennium 
in 
the 
Governor' s 
budget 
submission 
to 
the 
Legislature 
may 
not 
exceed 
the 
General 
Fund 
appropriation 
limitation established in section ~§64 1994. 
Sec. 7. 5 MRSA §1665. sub-§l, as amended by PL 2005, c. 2, Pt. 
A, §7 and affected by §14, is further amended to read: 
1. 
Expenditure 
and 
appropriation 
requirements. 
On 
or 
before September 1st of the even-numbered years, all departments 
and other agencies of the State Government and corporations and 
associations receiving or desiring to receive 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 
total 
General 
Fund 
appropriation 
requests 
submitted by each department and agency for each fiscal year may 
not exceed the General Fund appropriation of the previous fiscal 
year multiplied by one plus the 
avel:'a~e-~-e-a-1---pe-r-6~--i:aeeme 
~l:'ewsa--Fat~-~--6T19%T-~~~-~-6--±ess inflation adjustment 
factor 
as 
defined 
in 
section 
1992. 
~el:'--PQl:'peses--ef--~Ris 
s Q9 see s i e:a T - }..'-a-v€-£ -a~-e- -r-e-a-1- -pe-F-SG-a-a-1-- i:a e eme - ~-£ -ew-t£- -r-at.-e-!!... -me-a-a-s- - SR e 
avel:'a~e-~~--sRe-~~~--±g-~l~--yeal:'sT-~~-wisR-~~-mess 
l:'eee:as-€-a~eB4-a-£-~-~~-whi&h-aasa-J£-~~~~-~~-~~-pel:'ee:a~ 
eRa:a~e-~~~~1--iae9ffie-4:a-~~~~~~-feF--a-~1~--~a-F-r-as 
essifRasea-&y-~~~it~-Ssa~es-Qepa£sme:as-~-~~~,-S~F-ea-~-ef 
~ee:aemie-AB-a~y-6J-67-~~~~-peFeea~-€Ra:a~e-~~~~~~as-~F--Pl:'iee 
~:aaeH-~~-~~-eale:aaal:'-Y~'--~~-PQl:'peses-~-~~~-SQ9Seesie:aT 
!.!~e:asQfRel:'---P-F-~-~~-!'--Ra6--~~--same--ffie-a:a.,i:a~--as--.i,.n.-~~-t~-e--~eT 
seesiea-~-.--~J:.o.n..-±T 
The expenditure estimates 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. 
All 
departments 
and other 
agencies 
receiving or desiring to 
receive state funds from the Highway Fund shall submit to the 
officer 
estimates 
of 
their 
expenditure 
and 
appropriation 
requirements for each fiscal year of the ensuing biennium that do 
not exceed the Highway Fund appropriation of the previous fiscal 
year multiplied by one plus the 
avel:'a~e--r;.e.a.1---pe-r-6~--i:aeeme 
~l:'ewsa--Fat~-~--6T19%T-~~~-~-6--±ess inflation adjustment 
factor as defined in section 1992. 
The Highway Fund highway and 
bridge 
improvement 
accounts 
are 
exempt 
from 
this 
spending 
limitation. 
Sec. 8. 5 MRSA §1710-F, sub-§4, as enacted by PL 2005, c. 2, 
Pt. A, §8 and affected by §14, is repealed. 
Sec. 9. 5 MRSA c.165 is enacted to read: 
CHAPTER 165 
THE TAXPAYERS' BILL OF RIGHTS 
§199l. 
E~nditure and revenue requirements; construction of 
chapter 
The 
following 
prov~s~ons 
of 
this 
section 
apply, 
notwithstanding any other provision of law. 
1. 
El!;penditure 
limitations. 
Annual 
state 
and 
local 
expenditures may not exceed the limits provided in this chapter. 
2. 
Revenue increases. 
An increase in revenue may only be 
adopted as provided in section 1993. 
3. 
Construction. 
It is the intent of the Legislature that 
this chapter be interpreted liberally to restrain excess growth 
of state and local government. 
§1992. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Election officer. 
"Election officer" means: 
A. 
In 
a 
statewide, 
county or 
municipal 
election, 
the 
municipal registrar of voters; or 
B. 
In an el~ction by the voters of a local district that is 
not a municipality, 
the official with responsibility for 
managing the list of voters of the local district. 
2. 
Increase in 
reve~nl!JU!i!-.!e~. __ 
o~o I""n~c.,!,.r.!;e:.J;a!j;s!..SeL--""i""nL--",-r.5ie'-.l!vc.se,-"nJ,Ju~e",--"---.!m!!Je;;<.;a~n~s---,a~n~y;t.. 
legislation, local ordinance or tax levy that causes a net gain 
in revenue and: 
JO 
.16 
A. 
Enacts a new tax or fee; 
B. 
Increases the rate or expands the base of an existing 
tax or fee; 
C. 
Reduces 
benefits or eligibility under 
the 
Business 
Equipment 
Tax 
Refund 
program 
established 
in Title 
36, 
chapter 915 without providing the same level of benefits and 
eligibility under a comparable program or without providing 
a 
100% property tax exemption for property eligible for 
reimbursement under Title 36, chapter 915; 
D. 
Repeals or reduces any tax exemption, credit or refund; 
or 
E. 
Extends an expiring tax or fee increase. 
3. 
Inflation 
adjustment 
factor. 
"Inflation 
adjustment 
factor" means the increase in the Consumer Price Index for the 
most recently available calendar year as calculated by the United 
States Department of Labor, Bureau of Labor Statistics. 
4. 
Local district. 
"Local district" means 
any county, 
municipality or 
other 
substate governmental entity with 
the 
authority to collect revenue. 
5. 
Population adjustment factor. 
"Population adjustment 
factor" means the increase or decrease in population for the 
preceding 
calendar 
year 
over 
the 
pr ior 
calendar 
year 
as 
determined annually by the Executive Department. State Planning 
Office 
statewide 
and 
for 
each municipality based on federal 
census estimates. 
6. 
Ouasi=9overnmental agency. 
"Ouasi-governmental agency" 
means 
any 
separate 
legal 
entity 
for 
which 
the 
State 
is 
financially accountable and that is included in the financial 
.s.tatements of the State for financial reporting purposes under 
guidelines 
established 
by 
generally 
accepted 
accounting 
principles mandated by a governmental accounting standards board. 
7. Revenue. 
"Revenue" means taxes and fees collected by the 
State, a guasi-governmental agency or a local district pursuant 
to the statutes of the State, including those collected under 
Title 36, Part 2. 
It includes money received from the sale of 
goods and services only to the extent that the receipts exceed 
the cost of providing the goods or services. 
§1993. 
Approyal of revenue increases 
1. 
Approval of 
inCrt;tqli~S. 
The following forms of approval 
are reguired to adopt an increase in revenue: 
A. 
The measure must be approved by a vote of 2/3 of all the 
members of each House of the Legislature or 
2/3 of the 
members of the legislative body of a guasi-municipal agency 
or a local district; and 
B. 
Except as provided in subsection 2, the measure must be 
approved by a majority of the voters in the jurisdiction as 
described in subsection 3. 
2. 
Exceptions. 
Voter 
approval 
under 
subsection 
1, 
paragraph B is not reguired if: 
A. 
Annual state or local 
revenue is less than annual 
payments 
on general 
obligation bonds, 
reguired 
payments 
related to pensions and final court judgments; 
B. 
The measure is an emergency tax and the provisions of 
section 1999 are followed; or 
C. 
The increase in revenue applies to a guasi governmental 
agency that does not have a body of voters. 
• 
lO 
\4 
lG 
'i2 
'± 4 
Ii 6 
4t1 
SO 
For the purposes of this subsection, "emergency" does not include 
economic conditions, 
revenue shortfalls or district salary or 
fringe benefits increases. 
3. 
Approval by voters; emergency approval. 
The guestion of 
whether to adopt legislation to impose an increase in revenue of 
the State must be submitted to the voters for approval at the 
next general election as defined in Title 21 A, section 1. 
If 
the Legislature determines by a 
2/3 vote that legislation to 
increase taxes or fees should take effect sooner than the next 
general election, the Legislature may provide for submission of 
the guestion to the voters at any regular or special election as 
defined in Title 21 A, 
section 1. 
The guestion of whether to 
adopt 
an 
increase 
in 
revenue 
of 
a 
local district must 
be 
submitted to the voters of the district at the next general or 
special districtwide election. 
4. 
Revenue estimates. 
A measure submitted to the voters 
under this section must include an estimate of the amount to be 
raised by the measure 
for 
the first 
fiscal years of its 
implementation. 
5. 
Notice. 
At least 30 days before an election reguired 
under this chapter, the election officer shall mail at the least 
cost 
a 
titled notice 
or 
set 
of 
notices 
addressed 
to 
"All 
Registered Voters" at each address of every active registered 
voter. 
Notices must include the following information and may 
not include any additional information: 
A. 
The election date, 
hours, ballot title and text and 
local election office address and telephone number; 
B. 
For each 
propos~d 
actual total of fiscal 
and each of the past 4 
dollar change; 
C. 
For the first full 
increase, estimates of 
increase and of fiscal 
revenue increase, 
the estimated or 
year spending for the current year 
years and the overall percentage and 
fiscal year of each proposed revenue 
the maximum dollar amount of each 
year spending without the increase; 
D. 
Two summaries, up to 500 words each, one 
~n support of 
and one in opposition to each proposal, of written comments 
filed with 
the election officer by 
days 
before 
the 
election. 
A summary may not mention names of persons or 
private 
groups, 
nor 
any 
endorsements 
of 
or 
resolutions 
against 
the 
proposal. 
Measure 
representatives 
following 
these rules shall write this summary for their proposal. 
The election officer shall maintain and accurately summarize 
all other relevant written comments. 
Except by later voter aPll-I;'ova~f an increase in reven,ue exceeds 
any estimate prepared under paragraph C for the same fiscal year, 
the tax increase is thereafter reduced in proportion to the 
amount of the excess, and the excess revenue that was collected 
must be refunded in the next fiscal year. 
Ballot questions for 
revenue increases must begin: 
"Shall (specify district) revenues 
be increased (amount of first or, if phased in, full fiscal year 
dollar increase) annually ... ?" 
6. 
CQ$ts. 
The State shall reimburse municipalities for the 
following costs: 
A. 
The 
costs 
of 
any 
election 
under 
this 
section 
providing the notice 
re£L~ired under subsection 5 if 
election provides for a state tax increase; and 
and 
the 
B. 
The cost of one local district election per year under 
this 
section if that election occurs 
during 
a 
regular 
election. 
§1994. 
E~enditure limitatiQn$ 
1. 
State e~nditure limitation. 
Beginning with the first 
fiscal year that begins after this section takes effect, the 
maximum annual percentage change in state fiscal year spending in 
the categories specified in this subsection equals the inflation 
adjustment factor plus the population adjustment factor and any 
increases attributable to measures approved under section 1993. 
This limitation must be calculated separately for the following 
categories: 
A. 
General Fund: 
B. 
Highway Fund: 
C. 
Quasi-governmental agencies and Qther Special Revenue 
funds, 
for which separate individual limitations must be 
applied. 
For 
quasi-governmental 
agencies 
whose 
primary 
purpose is providing educational programs, 
the limitation 
must 
be 
calculated 
by 
substituting 
for 
the 
popUlation 
adjustment factor 
a 
factor 
based on 
changes 
in student 
enrollment. 
2. 
Local expenditure limitation. 
Beginning with the first 
fiscal year that begins after the effective date of this section, 
the maximum annual percentage change in fiscal year spending for 
a local district that is a school administrative unit equals the 
inflation adjustment 
factor 
plus 
the 
change 
in its student 
enrollment and any increases attributable to measures approved 
.. 
under section 1993. 
The 
maximum 
annual percentage change in 
fiscal year spending for a local district that is not a school 
administrative unit for a fiscal year may not exceed: 
A. 
The amount of revenue for the local district for the 
previous fiscal year adjusted by the change in the assessed 
value of taxable real and personal property in the local 
district, or the amount of revenue for the local district 
for 
the previous 
fiscal year 
adjusted by 
the inflation 
adjustment factor plus 
the population adjustment factor, 
whichever is lower; plus 
B. 
Any increases attributable to measures approved under 
section 1993. 
3. 
Exceptions. 
The 
following 
may 
not 
be 
counted 
in 
~4 
calculating expenditure limitations under this section: 
A. 
Amounts 
returned to taxpayers as 
refunds of amounts 
exceeding the expenditure limitation in a prior year; 
B. 
Amounts received from the Federal Government; 
c. 
Amounts 
collected 
on 
behalf 
of 
another 
level 
of 
government; 
D. 
Pension contributions 
by employees 
and pension fund 
earnings; 
E. 
Pension 
and 
disability 
payments 
made 
to 
former 
government employees; 
F. 
Amounts received as grants, gifts or donations that must 
be spent for purposes specified by the donor; 
G. 
Amounts paid pursuant to a court award; or 
H. 
Reserve transfers or expenditures. 
4. 
ExceJ;Lding 
expe»gityre 
li,mitation. 
If revenues 
are 
projected to exceed the expenditure limitations in this section, 
the amount of revenues exceeding the expenditure limitations may 
be spent if approved in the same manner as required for a revenue 
increase under section 1993. 
§1995. 
Transfers and refund of unappropriated General Fund 
surplus 
1. 
Fund created. 
The Tax Relief Reserve Fund, referred to 
in this section as "the fund," is created for the purposes set 
forth in this chapter. 
The fund may not lapse, but remains 
continuing carrying account to carry out the purposes of 
section. 
in a 
this 
2. 
Transfer. 
At the close of each fiscal year, the State 
Controller 
shall 
identify 
the 
amount 
of 
General 
Fund 
unappropriated surplus and make the following transfers: 
A. 
Eighty percent of the unappropriated surplus must be 
transferred to the fund; and 
B_. __ 
TwenJ;;~rcent ~~t.h~-1lnap-PX,Qpriated surplus must 
l:1~ 
transferred 
to 
the 
Maine 
Budget 
Stabilization 
Fund 
established in section 1521. 
3. 
Notification. 
By 
September 15th annually, 
the State 
~~troller 
sha~Qt~t~the 
__ k~~sl~ture and 
the 
State 
Tax 
Assessor of the amount in the fund as a result of the transfers 
required by subsection 2. 
4~Et{J,gl_cLJJ1KJ~JlqlLl~gi~l,.aj:j,:ve __ a!;:tion. 
If the amount in the 
fund exceeds $25,000,000, the Legislature shall, by October 15th, 
enact legislation to provide for 
the 
refund to 
taxpayers of 
amQunts in the fund. 
Refunds may take the form only of temporary 
or permanent broad-based tax credits, rebates or rate reductions. 
5. 
Refund 
in 
case 
of 
legislaJ:ive 
inaction. 
If 
the 
Legislature does not enact ~islation by October 15th to provide 
refunds 
pursuant 
to 
subsection 4, 
then 
the 
State Controller 
shall, by October 30th-L __ 1l~Ltltr the State Tax Assessor of 
th~ 
amount in the fund. 
The State Tax Assessor shall calculate a 
one-time 
bon~ersonal exemption refund. 
The 
amount 
oJ __ the 
~rsonal exemption refund must 
be calculated by dividing the 
amount in the 
fund identified by 
the State Controller under 
subsection 3 by the number of per:,sonal exemptions claimed on 
income tax returns filed for tax years beginning in the previous 
calendar year and rounded down to the nearest $5 increment. 
The 
'lU 
State Tax Assessor shall issue a refund by November 30th to a 
taxpayer who filed an income tax return by April 15th of the same 
calendar year based on the number of personal exemptions claimed 
on the taxpayer' s 
return without regard to the taxpayer' s 
tax 
liability for the year. 
§1996. 
Transfers and refund of unallocated Highway Fund surplus 
1. 
Fund 
cr~ated. 
The Highway Fund Reserve F,und, referred 
to in this section as "the fund," is created for the purposes set 
forth in this chapte~ 
2. 
Transfer. 
At the close of each fiscal year, the State 
Controller shall identify the amount of Highway Fund unallocated 
surplus and make the following transfers: 
A. 
Eighty 
percent of 
the 
unallocated surplus 
must 
be 
transferred to the fundi and 
B. 
Twenty percent 
of 
the 
unallocated surplus 
must 
be 
transferred to the Maine Highway Budget Stabilization Fund 
established in section 1522. 
3. 
Notification. 
By 
September 15th annually, 
the State 
Controller shall notify the Legislature of the amount in the fund 
as a result of the transfers required by subsection 2. 
4. 
Refund through legislative action. 
If the amount in the 
fund exceeds 1Q% of Highway Fund expenditures for the previous 
fiscal year, the State Tax Assessor shall calculate, based on the 
amount in the fund, 
a proportional reduction in the taxes on 
motor 
fuels 
under Part 
to 
become effective the 
following 
January 1st and remain in effect for one calendar year. 
§1997. 
Revenues of quasi governmental agencies and Other Special 
Revenue funds accounts 
By September 15th annually, each quasi-governmental agency 
or state agency that manages 
an Other Special Revenue 
funds 
account 
shall 
submit 
an 
annual 
report 
to 
the 
Legislature 
identifying revenues received in the preceding fiscal year that 
exceed the expenditure limitation established in section 1994 and 
any 
other 
uncommitted 
revenues 
received during 
the 
previous 
fiscal 
year 
and 
proposing 
a 
plan 
for 
refunding 
the 
amount 
identified that 
exceeds 
10% 
of 
the 
previous 
fiscal 
year's 
expenditure. 
§1998. 
Refund of excess local revenyg§ 
If a local district receives revenues in a fiscal year in 
excess of the expenditure limitation under section 1994, 
the 
local district must use the amount of the unprotected excess to 
reduce the amount of property tax assessed in the succeeding 
year. 
For purposes of this section, "unprotected excess" means 
the amount in excess of an amount set aside in a reserve account 
for unanticipated contingencies, which may not exceed 10% of the 
previous fiscal year's expenditure. 
§1999. 
Emergency taxes 
1. 
Emergency taxes pennitted; conditions. 
The State or a 
local district may impose emergency taxes only in accordance with 
this section: 
A. 
The tax must be approved for a specified time period by 
a 
2/3 
majority 
of 
the 
members 
of 
each 
House 
of 
the 
Legislature or by a 2/3 majority of the legislative body of 
a local district; 
B. 
Emergency tax revenue may be spent only after other 
available reserves are depleted and must be refunded 180 
days after the emergency ends if not spent on the emergency; 
and 
C. 
The tax must be submitted for approval by the voters at 
the next statewide or districtwide election. 
2. 
Absen~~p-~ov.~l. 
provided in this section, 
an 
following the election. 
If not approved by the voters as 
emergency tax expires 
days 
Individual or class action lawsuits may be filed to enforce 
this chapter and must be given the highest civil priority for 
resolution. 
Successful 
plaintiff~re 
allowed 
costs 
and 
reasonable attorney's fees, but a district is not unless a suit 
against it is ruled frivolous. 
Revenue collected, kept or spent 
in conflict with this chapter for 4 full fiscal years before a 
suit is filed must be refunded with 10'1-0 annual simple interest 
from the initial conduct. 
Sec. 10. 5 MRSA §13063-C. sub-§4. ~B. as amended by PL 2005, 
c. 2, Pt. A, §9 and affected by §14, is further amended to read: 
B. 
Notwithstanding section 
the program after July 31, 
Maine Budget Stabilization 
l§~6 1521. 
1585, any balance remaining in 
2007 must be transferred to the 
Fund as established in section 
Sec. 11. 25 MRSA §1612, sub-§7, as amended by PL 2005, c. 2, 
Pt. A, §12 and affected by §14, is further amended to read: 
7. 
Payment 
from 
the 
Maine 
Budget 
Stabilization 
Fund. 
Benefits are payable from the Maine Budget Stabilization Fund as 
provided in Title 5, section la~6T-s~eseetiea-§ 1521. 
Sec. 12. 36 MRSA §3321, sub-§5 is enacted to read: 
5. 
Voter approval. 
Beginning on the July 1st following the 
effective date of this subsection, a change in the rate of excise 
tax resulting from the adjustment required in subsection 1 may 
only take effect if approved by a majority of the voters at a 
regular or special election. 
Sec. 13. Maine Budget Stabilization Fund. 
The 
Maine 
Budget 
Stabilization Fund established in the Maine Revised Statutes, 
Title 5, section 1521 is the successor in every way to the Maine 
Budget Stabilization Fund established under Title 5, section 1532 
that is repealed in this Act. 
All funds in the Maine Budget 
Stabilization Fund established under Title 5, section 1532 are 
transferred to the Maine Budget Stabilization Fund established in 
Title 5, section 1521 on the effective date of this Act. 
Sec. 14. 
Revisor's review; cross-references. 
The 
Revisor 
of 
Statutes shall review the Maine Revised Statutes and include in 
the errors 
and inconsistencies bill submitted to 
the 
Second 
Regular Session of the 122nd Legislature pursuant to Title L 
section 94 
any sections necessary to correct and update any 
cross-references in the statutes to provisions of law repealed in 
this Act. 
SUMMARY 
The purpose of this bill is to restrain the growth in state 
and local government by imposing expenditure limitations on state 
and 
local 
government. 
This 
requires 
a 
procedure 
of 
voter 
approval of tax and fee increases. 
Under 
this bill, 
growth 
in annual 
expenditures 
of 
the 
General Fund, the Highway Fund, quasi-governmental organizations, 
2H 
Other Special Revenue funds and local district governments are 
limited 
according 
to 
increases 
in population 
and 
inflation. 
Growth in budgets of school administrative units and state-level 
educational institutions is limited according to increases in 
inflation and 
student enrollment. 
For 
the 
General 
Fund 
and 
Highway 
Fund 
budgets, 
revenues 
exceeding 
the 
expenditure 
limitation must be distributed by directing 20% of that excess to 
a budget stabilization fund and 
80°", of that excess to a 
tax 
relief fund. 
The budget stabilization funds may be used only in 
years when revenues are not sufficient to fund the level of 
expenditure permitted by the growth limits. 
The tax relief funds 
must be used to provide tax relief through refunds proportional 
to 
individual 
income 
tax personal 
exemptions 
claimed in the 
previous tax year or 
a 
decrease in motor fuels 
taxes. 
For 
quasi-governmental agencies and state agencies that manage Other 
Special Revenue funds, 
the managers of those funds must report 
'±4 
excess surpluses to the Legislature with a plan for refund of 
those revenues. 
Under this bill, an increase in revenue would be possible 
only by a 
2/3 vote of each House of the Legislature or the 
legislative body of a local district or the governing body of a 
')0 
quasi-governmental agency and the approval of the voters of the 
jurisdiction, if applicable.