An Act Eliminate Pension Cost Reduction Bonding and Provide Replacement Budgeting Measures
Maine Legislature, Session 122, LD 1691
Senate Amendment SA_B_S375 (Senate)
Amends: 30-A MRSA §5681

SENATE AMENDMENT :.]3" to H.P. 1199, L.D. 1691, Bill, "An Act 
Eliminate 
Pension 
Cost 
Reduction 
Bonding 
and 
Provide 
Replacement Budgeting Measures" 
Amend the bill by striking out all of Parts DD and EE. 
Further amend the bill by striking out all of Part BBB. 
Further 
amend the bill by inserting after Part 
KKK 
the 
following: 
'PARTLLL 
Sec. LLL-l. 30-A MRSA §5681, sub-§§4-A and 4-B, as enacted by 
PL 1999, c. 731, Pt. U, §4, are amended to read: 
4-A. 
Distribution of Local Government Fund. 
The Treasurer 
of State shall 
t~aas~eF-~~-~~€--ia distribute the Local 
Government Fund proportionately on the 20th day of each month. 
Money in the Local Government Fund must be distributed to each 
municipality in proportion to the product of the population of 
the municipality multiplied by the property tax burden of the 
municipality. 
4-B. 
Distribution of Disproportionate Tax Burden Fund. 
The 
Treasurer of State shall 
t~aas~eF--t.-he--ba-::J:..anG.e..-ia distribute the 
Disproportionate Tax Burden Fund proportionately on the 20th day 
of each month. 
Money in the Disproportionate Tax Burden Fund 
must be distributed to each municipality in proportion to the 
product of the population of the municipality multiplied by the 
disproportionate tax burden of the municipality. 
Page l-LR2419(8) 
SENATE AMENDMENT 
SENATE AMENDMENT:3E)· to H.P. 1199, L.D. 1691 
Sec. LLL-2. 30-A MRSA §5681, sub-§4-C is enacted to read: 
4-C. 
Appropriations. 
The Governor shall incorporate into 
the budget and the Legislature shall appropriate state-municipal 
revenue sharing according to this subsection. 
A. 
The 
total 
of 
the 
amounts 
appropriated 
for 
state-municipal 
revenue 
sharing must egual the 
following 
percentages of the amount forecasted by the annual December 
1st report of the Revenue Forecasting Committee under Title 
5, section 1710-F as receipts from the taxes imposed under 
Title 36, Part 3 and Part 8 and Title 36, section 2552, 
subsection 1, paragraphs A to F, 
reduced by postage and 
programming costs of administering state-municipal revenue 
sharing: 
(1) 
For fiscal years beginning before July 1. 
2007, 
5. l'?'o; and 
( 2) 
For fiscal years beginning on or after July 1, 
2007, 5.2""0. 
B. 
The amount appropr iated to the Local Government Fund 
must be 
an 
amount egual to the 
annual 
growth ceiling, 
reduced 
by 
2%. 
The 
amount 
appropriated 
to 
the 
Disproportionate Tax 
Burden Fund must 
be 
the difference 
between the total amount appropriated under paragraph A and 
the annual growth ceiling, reduced by 2%. 
C. 
The amount appropriated to the Fund for the Efficient 
Delivery of Local and Regional Services must egual the 2°-6 
reductions made under paragraph B. 
D. 
The State Tax Assessor shall certify to the Governor and 
the Legislature 
by December 15th, 
annually, 
the 
amounts 
reguired to be appropriated to the Local Government Fund, 
the Disproportionate Tax Burden Fund and the Fund for the 
Efficient Delivery of Local and Regional Services. 
Sec. LLL-3. 30-A MRSA §5681, sub-§5, as amended by PL 2005, 
c. 12, Pt. E, §1, is repealed. 
Sec. LLL-4. 30-A MRSA §5681, sub-§5-B, as amended by PL 2005, 
c. 2, Pt. H, §1, is further amended to read: 
5-B. 
Fund for the Efficient Delivery of Local and Reqional 
Servi ces . 
~e ~ - ~h€--mon-t-hG- -beg-i,nn..1ng- -e-B-- e ~ - .a.f~e-£ - .J..u..li'--1-, -bG-G4 - a:ae 
BeEe~e-~he-~~~~~~~~~~~-ay-6Qa6e€~4e:a6-~~~Sr-6% 
eE-~~--~~~~-~Fa:a6~e~Fee-~~~~-PQF6Qa:a~-~~~~-§ 
m~st-~-~~~-~B--~Re The Fund for the Efficient Delivery of 
., 
SENATE AMENDMENT 
, 
SENATE AMENDMENT ::B" to H.P. 1199, L.D. 1691 
Local and Regional Services, as established in subsection 3, aRa 
must be distributed to those municipalities and counties that can 
demonstrate significant and sustainable savings in the cost of 
delivering 
local 
and 
regional 
governmental 
services 
through 
collaborative approaches to service delivery, enhanced regional 
delivery systems, the consolidation of administrative services, 
the creation of broad-based purchasing alliances or the execution 
of interlocal agreements. 
Sec. LLL-S. Transfer from Fund for the Efficient Delivery of Local 
and Regional Services. 
Notwithstanding the Maine Revised Statutes, 
Ti tIe 30-A, section 5681, subsection 5-B or any other provision 
of law, the State Controller shall transfer $2,335,918 from the 
Fund for the Efficient Delivery of Local and Regional Services to 
the unappropriated surplus of the General Fund no later than June 
30, 2006. 
Sec. LLL-6. 
Appropriations and allocations. 
appropriations and allocations are made. 
TREASURER OF STATE, OFFICE OF THE 
State-municipal Revenue Sharing 
0020 
The 
following 
Initiative: 
Appropriates 
funds 
for 
state-municipal 
revenue 
sharing at the same budgeted amounts in lieu of a transfer to an 
Other Special Revenue Funds account. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Disproportionate Tax Burden Fund 
0472 
.; 
2005-06 
$0 
$0 
2006-07 
$98,999,285 
$98,999,285 
Initiative: 
Appropriate5 
funds 
for 
the 
Disproportionate 
Tax 
Burden Fund distribution::. to municipalities at the same budgeted 
amounts in lieu of a transfer to an Other Special Revenue Funds 
account. 
GENERAL FUND 
2005-06 
2006-07 
All Other 
$0 
$21,465,092 
GENERAL FUND TOTAL 
$0 
$21,465,092 
TREASURER OF STATE, OFFICE OF THE 
DEPARTMENT TOTALS 
2005-06 
2006-07 
GENERAL FUND 
$0 
$120,464,377 
DEPARTMENT TOTAL -
ALL FUNDS 
$0 
$120,464,377 
SENATE AMENDMENT 
SENATE AMENDMENT ~, to H.P. 1199, L.D. 1691 
Sec. LLL·7. Effective date; transition. 
This Part takes effect 
July 1, 2006, except that at the close of fiscal year 2005-06 no 
transfers to the Local Government Fund representing June 2006 
revenues may be made. ' 
Further amend the bill 
nonconsecutive 
consecutively. 
Part 
letter 
by relettering 
or 
section 
SUMMARY 
or renumbering any 
number 
to 
read 
This amendment eliminates the reduction in state-municipal 
revenue sharing, the transfer of funds from the Fund for the 
Efficient Delivery of Local and Regional Services to the General 
Fund and the 
90% limitation on reimbursement of property taxes 
under 
the 
Business 
Equipment 
Tax 
Reimbursement 
program 
as 
proposed in the bill. 
Part LLL 
changes state-municipal revenue sharing from 
a 
transfer from the General Fund based on a percentage of certain 
General Fund revenue sources to an appropriation equal to the 
budgeted distributions. 
The transition of this program results 
in a one-time revenue increase equal to the amount of June 2006 
revenue that would be transferred from the General Fund to the 
Local Government Fund. 
The only budgeted effect on transfers is 
the budgeted transfer to the Fund for the Efficient Delivery of 
Local and Regional Services, which is not funded in the 2006-2007 
biennium. 
SPONSORED BY: 
(Senator 
COUNTY: 
FISCAL NOTE REQUIRED 
(See attached) 
SENATE AMENDMENT 
, 
Approved: 06/15/05 .Mac:.. 
LD 1691 
LR 2419(08) 
An Act To Eliminate Pension Cost Reduction Bonding and Provide Replacement Budgeting Measures 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
. Revenue 
General Fund 
Transfers 
General Fund 
Fiscal Detail and Notes 
Fiscal Note for Senate Amendment6 
Sponsor: Sen. Courtney 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
($19,430,000) 
$7,179,148 
$0 
$120,464,377 
$19,430,000 
$115,737,164 
($2,451,935) 
This amendment will decrease the General Fund cost of the bill by $19,430,000 in fiscal year 2005-06 but increase the 
General Fund cost of the bill by $7,179,148 in fiscal year 2006-07. Based on the estimated year-end balances, this 
amendment maintains a balanced budget for the 2006-2007 biennium. 
LR2419(8) - Fiscal Note - Page 1 of 1