Maine Legislature, Session 122, LD 1109
Committee: Appropriations and Financial Affairs
Sponsors: KAELIN, CRESSEY, COURTNEY, DA VIS, MILLS, NASS, SNOWE-MELLO, WESTON, BOWEN, CAMPBELL, CURLEY, DUPREY, FLOOD, LEWIN, MILLETT, TRAHAN

Legislative Document 
No. 1109 
H.P.762 
House of Representatives, March 1,2005 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Restrict an Increase in the Growth of the State Budget 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative KAELIN of Winterport. 
711~ 
1I1.77!p£~ 
MILLICENTM. MacFARLAND 
Clerk 
Cosponsored by Representative CRESSEY of Cornish, Senators: COURTNEY of York, 
DA VIS of Piscataquis, MILLS of Somerset, NASS of York, SNOWE-MELLO of 
Androscoggin, Senator WESTON of Waldo and 
Representatives: BOWEN of Rockport, CAMPBELL of Newfield, CURLEY of Scarborough, 
DUPREY of Hampden, FLOOD of Winthrop, LEWIN of Eliot, MILLETT of Waterford, 
TRAHAN of Waldoboro. 
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, Pt. 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 
percentage change in personal income in this State for a calendar 
Y-ear, as estimated by the United States Department of CommercElL 
Bureau of Economic Analysis, less the percentage change in the 
Consumer Price 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 12-month period of the National Consumer Price 
Index, not seasonally adj usted, published monthly by the Uni ted 
States 
Department 
of 
Labor, 
Bureau 
of 
Labor 
Statistics,-
designated as the "National Consumer Price Index for All Urban 
Consumers: 
United States City Average." 
No 
appropr iations 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. 
Twenty percent of the amount of General Fund 
revenues that exceeds the limit on General 
Fund expenditures 
established in this secti9n 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 
0b 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°1> 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. 
!J2 
and be it further 
Page l-LROOI2 (1) 
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: 
L2 
"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 
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 Nard, 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 ceiling on the 
growth in state spending to a percentage rate equal to 2/3 of the 
4R 
average real personal income growth rate plus 2/3 of the average 
forecasted inflation rate, requires a 2/3 vote of the Legislature 
SO 
to approve General Fund expenditures that exceed this ceiling and 
requires that surplus funds be distributed: first, to a capital 
construction 
and 
improvements 
reserve 
fund 
and 
a 
budget 
stabilization fund; 2nd, to reduce the unfunded liability 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 the State of Maine.