An Act To Increase the State Share of Education Costs, Reduce Property Taxes and Reduce Government Spending at All Levels
Maine Legislature, Session 122, LD 0001
Committee Amendment CA_A_H1 (House)
Amends: 5 MRSA §1511, 5 MRSA §1513, 5 MRSA §1518-A, 5 MRSA §1664, 5 MRSA §1665, 5 MRSA §1710-F, 5 MRSA §13063-C, 5 MRSA §17253, 5 MRSA §22001, 30-A MRSA §706, 30-A MRSA §5721-A, 30-A MRSA §7102, 5 MRSA §17154, 20-A MRSA §1351, 20-A MRSA §1, 20-A MRSA §6303, 20-A MRSA §6651, 20-A MRSA §6654, 20-A MRSA §7734-A, 20-A MRSA §8301-A, 20-A MRSA §8351, 20-A MRSA §8402, 20-A MRSA §8404, 20-A MRSA §15673, 20-A MRSA §15675, 20-A MRSA §15676-A, 20-A MRSA §15678, 20-A MRSA §15682, 20-A MRSA §15683, 20-A MRSA §15684, 20-A MRSA §15685, 20-A MRSA §15686, 20-A MRSA §15688, 36 MRSA §6201, 36 MRSA §6204, 36 MRSA §683

COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1, Bill, "An Act To 
Increase the State Share of Education Costs, 
Reduce Property 
Taxes and Reduce Government Spending at All Levels" 
Amend the bill by striking out everything after the enacting 
clause and before the emergency clause and inserting in its place 
the following: 
. PART A 
Sec. A-I. 5 MRSA §1511, as amended by PL 2003, c. 451, Pt. X, 
§l, is further amended to read: 
§1511. Loan Insurance Reserve 
~he-~~~-~~~~~~--6Ra±±T-~~-~~-e±e6e-~~-~~-~i6ea± 
yeatT-~~~~--~~-e~-~~~r~~~~-Sat~±a6-~-~~-Ge8eta± 
~a8Q-~~-~a&-R~~~~¥~-~~--Ge8eta±-~~~p&~&~~~-~a~J~a~-~~~-a 
ffiaHiffiam-~~-~~,~-~~--aehieyeQT 
The State Controller is 
j;Ytt.Re~-~l:l-~ae~i-3eQ may, at the close of each fiscal year, 
l:e 
transfer from the Unappropriated Surplus of the General Fund to 
the Loan Insurance Reserve amounts as may be available from time 
to time, 
up to 
an 
amount 
of $1,000,000 
per year after the 
transfers have been made pursuant to section 1507. 
The balance 
of this reserve must be paid to the Finance Authority of Maine if 
such payment does not cause the balance in the reserve fund 
maintained by the author i ty, when added to amounts held in the 
Finance Authority of Maine Mortgage Insurance Fund that are not 
committed 
or 
encumbered 
for 
another 
purpose, 
to 
exceed 
$35,000,000. 
Any 
balance 
in the 
Loan 
Insurance 
Reserve 
is 
appropriated for this purpose. 
Page l-LR0328(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. A-2. 5 MRSA §1513, as amended by PL 2003, c. 451, Pt. X, 
§§2 to 4, is repealed. 
Sec.A-3. 5MRSA§1517, as amended by PL 2003, c. 451, Pt. X, 
§6, is repealed. 
Sec. A-4. 5 MRSA §1518-A is enacted to read: 
SlS18-A. 
Tax Relief Fund for Maine Residents 
1. 
Tax Relief Fund for Maine Residents. 
There is created 
the Tax Relief Fund for Maine Residents, which must be used to 
provide tax relief to residents of the State. 
The fund consists 
of all resources transferred to the fund under section 1536 and 
other resources made available to the fund. 
2. 
Nonlapsing fund. 
Any unexpended balance in the Tax 
Relief Fund for Maine Residents may not lapse but must be carried 
forward to be used pursuant to subsection 1. 
Sec. A-5. 5 MRSA c.142 is enacted to read: 
CHAPTER 142 
MAINE BUDGET STABILIZATION FUND 
SlS3l. 
Definitions 
As 
used in this chapter. 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Average population arovth. 
"Average population growth" 
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 population from July 1st of each year and 
estimated by the United States Department of Commerce, Bureau of 
Census as adjusted and maintained by the Executive Department, 
State Planning Office. 
2. 
Average real personal 
income growth. 
"Average real 
personal 
income 
growth" 
means 
the 
average for 
the prior 
calendar years, ending with the most recent calendar year for 
which data is available, of the percent change in personal income 
in this State, as estimated by the United States Department of 
Commerce, Bureau of Economic Analysis, less the percent change in 
the Consumer Price Index for the calendar year. 
For purposes of 
this subsection, "Consumer Price Index" has the same meaning as 
in Title 36, section 5402, subsection 1. 
3. 
Baseline General Fund revenue. 
"Baseline General Fund 
revenue" 
means 
the 
recommended General Fund 
revenue forecast 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
reported by the Revenue Forecasting Committee in its December 1st 
report of even-numbered years, increased by the estimated amount 
of net General Fund revenue decrease, if any, for all enacted 
changes reducing state and local tax burden included in that 
forecast. 
4. Biennial base year appropriation. 
"Biennial base year 
appropriation" means: 
A. 
For 
the 
2006-2007 
biennium, 
the 
General 
Fund 
appropriation enacted for fiscal year 2004-05 as of December 
1, 2004: and 
B. 
For subsequent fiscal years. 
the amount of the General 
Fund appropriation limitation for the current year as of 
December 1st of even-numbered years. 
5. 
Commissioner. 
"Commissioner" means the Commissioner of 
Administrative and Financial Services. 
6. 
Forecasted inflation. 
"Forecasted inflation" means the 
average amount of change of the Consumer Price Index for the 
calendar years that are part of the ensuing biennium forecasted 
by the Consensus Economic Forecasting Commission in its November 
1st report of even-numbered years. 
7. General Fund revenue shortfall. 
"General Fund revenue 
shortfall" 
means 
the 
amount 
by 
which 
the 
General 
Fund 
appropriation limitation established by 
section 
1534 
exceeds 
baseline General Fund revenue and other available resources in 
each state fiscal year. 
8. 
Stabilization func.. 
"Stabilization fund" 
means 
the 
Maine Budget Stabilization Fund established in this chapter. 
9. 
State 
and local 
tax burden. 
"State and local tax 
burden" means the total amount of state and local taxes paid by 
Maine residents. per $1,000 of income. as determined annually by 
the State Tax Assessor based on data from the United States 
Department of Commerce. Bureau of Census and Bureau of Economic 
Analysis. 
§1532. 
Maine Budget Stabilization Fund 
1. 
Generally: stabilization fund established. 
The Maine 
Budget Stabilization Fund is hereby established. 
Amounts in the 
stabilization fund may not exceed 12% of total General 
Fund 
revenues in the immediately preceding state fiscal year and. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
except as provided by section 1533. may not be reduced below 1% 
of total General Fund revenu,= in the immediately preceding state 
fiscal year. 
For the purposes of this subsection. at the close 
of a fiscal year, "immediately preceding state fiscal year" means 
the fiscal year that is being closed. 
2. ExPenditures from fund. 
Except as otherwise provided in 
this section. amounts in the stabilization fund may be expended 
only to offset a General Fund revenue shortfall. 
3. Fund to be nonlapsina. 
The balance of the stabilization 
t],lnd may not lapse b],lt m],lst be carried forward to carry out the 
p],lrposes of this chapter. 
4. Investment of funds. The money in the stabilization fund 
may be invested as provided by law with the earnings credited to 
the stabilization fund. 
5. Investment proceeds; exception. At the close of every 
month 
during 
which 
the 
stabilization 
fund 
is 
at 
the 
Qo 
limitatigu descriQe~ in sUQsectigu I. the State Cgutrgller shall 
transfer frgm the General Fund tg the Retirement Allowance Fund 
established in section 17251 an amount eq],lal to the investment 
earnings 
that 
otherwise 
would 
have 
been 
credited 
to 
the 
stabilization fund. 
6. Death benefits. The Governgr shall allocate funds from 
the stabilization fund as needed to pay benefits due pursuant to 
Title 25, chapter 195-A. Allocations may be made upon written 
request of the Chiet of the State Police. the State Fire Marshal 
or the Director of Maine Emergency Medical Services and after 
consultation with the State Budget Officer. 
§1533. 
Declaration of budget emergency 
If the Legislature has adjourned sine die prior to the close 
of a fiscal year and the commissioner has provided notification 
as reg],lired by section 1668 that indicates that available General 
F],lnd 
reso],lrces will not 
be s],lfficient to meet General 
Fund 
expendit],lres. the commissioner may declare a budget emergency. 
At 
the close of 
the fiscal year. 
the State Controller 
may 
transfer from the available balance in the stabilization f],lnd to 
the 
General 
F],lnd 
Unappropriated 
S],lrplus 
up 
to 
the 
amount 
necessary to increase total General 
Fund resources for that 
fiscal year to be equal to General Fund expenditures. 
For the 
purposes 
of 
this 
section, 
the 
Governor 
may 
reduce 
the 
stabilization fund below the 1% minimwm threshold established by 
section 1532. 
The Governor shall inform the Legislative CO],lncil 
and 
the 
joint standing 
committee 
of 
the 
Legislature 
having 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
jurisdiction 
over 
appropriations 
and 
financial 
affairs 
immediately upon such transfers from the stabilization fund. 
§1534. 
General Fund appropr~ation limitation 
1. 
Establishment of G~neral Fund appropriation limitation. 
As of December 1st of each even-numbered year. there must be 
established a General Fund appropriation limit for the ensuing 
biennium. 
The General Fund appropriation limit applies to all 
General Fund appropriations. except that the additional cost for 
essential programs and services for kindergarten to grade 
education under Title 20-A, chapter 606-8 over the fiscal year 
2004-05 appropriation for general purpose aid for local schools 
is excluded from the General Fund appropriation limitation until 
the state share of that cost reaches 55% of the total state and 
local cost. 
A. 
For the first fisca' year of the biennium. the General 
Fund appropriation limitation is egual to the biennial base 
year 
appropriation 
multiplied 
by 
one 
plus 
the 
growth 
limitation factor in subsection 2. 
8. 
For the 2nd year of the biennium, 
the General Fund 
appropriation 
limit 
is 
the 
General 
Fund 
approPtiation 
limitation of the first year of the biennium multiplied by 
one plus the growth limitation factor in subsection 2. 
2. 
Growth limitation ~actor. 
The growth limitation factor 
is calculated as follows. 
A. 
For 
fiscal 
years 
when 
the State Tax 
Assessor has 
determined that the state and local tax burden ranks in the 
highest 113 of all states, the growth limitation factor is 
average real personal income growth, but no mote than 2.75%, 
plus average population growth. 
8. 
For fiscal years when the state and local tax burden 
ranks in the middle 1/3 of all states. as determined by the 
State Tax Assessor, the growth limitation factor is average 
real personal income growth plus forecasted inflation plus 
average population growth. 
3. 
Exceeding 
Genera]. 
Fund 
appropriation 
limitation: 
extraordina~ circumstances-
The 
General 
Fund 
appropriation 
limitation established in subsection 
may 
be 
exceeded 
for 
extraordinary 
circumstances 
only 
under 
the 
following 
circumstances. 
A. 
The extraordinary circumstances must be circumstances 
outside the control of the Legislature, including: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(1) 
Catastrophic events 
such as 
natural disaster. 
terrorism, fire. war and riot: 
(2) 
Unfunded or u~derfunded state or federal mandates; 
(3) 
Citizens' init'atives or other referenda: 
(4) 
Court orders or decrees: or 
(5) 
Loss of federal funding. 
Extraordinary 
circumstances 
do 
not 
include 
change.s 
in 
economic 
conditions, 
revenue 
shortfalls. 
increas~ 
salaries or Qenef'its, 
new pt:ogu,ms or prggram expansions 
that go beyond existing program criteria and operation. 
B. 
The appropriation 1imitation in subsection 1 
may 
be 
exceeded only by a vote of both Houses of the Legislature in 
a 
separate 
measure 
that 
identifies 
the 
extraordinary 
circumstance and the intent of the Legislature to exceed the 
appropriation limitation. 
C. 
Exceeding the appropriation limitation established in 
subsection 
permits 
appropriations 
to 
exceed 
the 
appropriation limitation only for the period necessary to 
address the extraordinary circumstance and does not increase 
the 
base 
for 
purposes 
of 
calculating the 
appropriation 
limitation for future years. 
4. 
Increase in appropr~ation limitation. 
The appropriation 
limitation established in subsection 1 may be increased for other 
purposes only by a vote of both Houses of the Legislature in a 
separate measure that identifies the intent of the Legislature tQ 
exceed the appropriation limitation. 
§1535. 
General Fund transfers to stabixization fund 
Baseline General Fund revenue, as recommended by the Revenue 
Forecasting Commission and authorized in accordance with chapter 
151-B, and other aVailable budgeted General Fung resources that 
exceed the General Fund appropriation limitation established by 
section 1534 must be transferred to the stabilization fund. 
The 
State Controller, 
at the 
close 
of 
each 
fiscal 
year, 
shall 
transfer the aVailable balance remaining in the General Fund to 
the 
stabilization 
fund 
aFter 
all 
ret;luireg 
deductions 
of 
appropriations, 
budgeted 
financial 
commitments 
and 
other 
adjustments considered necessary by the State Controller. 
§1536. 
Excess General Fund revenues 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
1. 
First priority res~~ve. 
The State Controller shall. as 
the first priority at the close of each fiscal year. reserve from 
the unappropriated surplus of the General Fund an amount egual to 
the excess of total baseline General Fund revenue received over 
accepted estimates in that fiscal year and transfer that amount 
at the beginning of the next fiscal year as follows: 
A. 
Thirty-two percent to the stabilization fundi 
B. 
Thirty-two percent to the Retirement Allowance 
Fund 
established in section 17251; and 
C. 
Sixteen 
percent 
to 
the 
Reserve 
for 
General 
Fund 
Operating Capital. 
~. 
M4i.U9.Jml tty.fer. 
At the close of each fiscal year, 
the 
State 
ContrQller 
shall 
transfer 
from 
the 
unappropriateg 
surplus of the General Fund to the stabilization fund an amount 
egual to the balance remain; ng of the excess of total General 
Fund revenue received over accepted estimates in that fiscal year 
that would have been transferred to the Reserve for General Fund 
Operating Capital pursuant to paragraph C had the Reserve for 
General Fund Operating Capital not been at its statutory limit of 
$50,000,000. 
3. 
Exceptions: 
stabilization 
fund 
at 
limit. 
If the 
stabilization fund is at its limit of 12% of General Fund revenue 
of 
the 
immediately preceding year, 
then 
amounts 
that would 
otherwise 
have 
been 
transferred 
to 
the 
stabilization 
fund 
pursuant to subsections 1 and 2 must be transferred to the Tax 
Relief Fund for Maine Residents established in section l5l8-A. 
Sec. A-6. 5 MRSA §1664, last 1[, as enacted by PL 2003, c. 451, 
Pt. X, §8, is 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 e~-~~e 
p~evie~s--~~~-~~--m~~~iF~iee-~-~-pl~s-~~-~~~-~eal 
pe~se8a*--~~£~me--~~~--r&B&r--as--~€4~~~~--~~--~~~a--199aT 
s~B6ee~ie8--~~---P~~&--~~-~~~--fe£e€as~ee--~-~-~--~a~e 
limitation established in section 1534. 
~e~--pu-~--&f--~~is 
pa~a'3~ap~T-.!.'~~~-f-().{"-e-Ga&t.-e.d--j,.8-~~a:1;i-e-8--~a~e!.!-~~~-ave~a'3e 
~e~eeas~ee-~aa~-~~-~£e--be8s~e~--~~.i..G&-~~-~~~e£~~~~~--~~e 
~eve8~e--~~~~--~~~--By--~~--~~~--~e~eeas~i8'3 
bemmi~~ee---pu-~--~~--e~ap~e~---~~~r---~~~--app~ep~ia~ie8 
*imi~a~ieB-may-~-e~eeeeee-e£~y-~-1;h&-ameHR~--&f-~~-aeei~ie8al 
eesEs-~-~~-~-~eaeFa:~-£e¥eRHe-~~~~~-B&~±&wi~-eHeeF~ie8al 
ei~e~s~aReeS~--~8-~~aQeG-~~-~~~-£eW--feee£a~--ma8ea~esT 
lesses-~~-~eee~a*-~~-e~-~~--~eveB~e-~~r-ei~ise86.!. 
iBiEia~ives-~--~~e~a.Ga:-~£~~--~ir&-4R€£eaSee-~~~-spe8eiB'3 T 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
eeQ~~-~~~~~-aee~ee5-~~--F~QiFe-~QQ4~4~~~-~~~-~eseQ~ees 
te-~~-~it~-~he-e~a€~5-~-~~&r-aRa-~~~-si~Ri~ieaRt 
iRe~eases-4£-~~~-~~i&~i~-sta~e-5€~¥4€€5-~~-~~-~~-~ae 
~esQ~t--e~--~e~is~atiye--eaaR~es--taat--iRe~easea--e~i~i9i~ity--eF 
iBe~eaSea--B€B€~4~5~---~~-~~--~--Ge&~aa~e--eHeeFtieBa± 
ei~eQffistaBees-~~-~~-Be~-~1~~~~~-aefiBea-4~-~~i&-FaFa~~aFa 
9Q~-~-~h€--ia~B~-~--tais-~~~r--¥e~--~~~~&&&-~--tais 
FaFa~~aFaT--~~~~--€4~€~ffi5~~B€€5~--~aa&--~--QB~eFeSeeB 
eeBaitieB--~--~a4i~~a&--e¥e~--~~--~he--~€~~~--~--~ae 
be~is±atQ~e-ha¥e-~~~~~~~-~~a~~~r--E~eeF~ieaa~-ei~eQffistaBees 
ae-Re~-~~~~y-~e-~~~~~-~~~~~~-~&a&~e-geyeBa 
eHis~iB~-F~e~~am-e~ite~ia-aBa-eFe~a~ieBT 
Sec. A-7. 5 MRSA §1665, sub-§l, as amended by PL 2003, c. 451, 
Pt. X, §9, is further amended to read: 
1. 
Ezpenditure 
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 average real personal income 
growth rate or 2.75%, whichever is less. 
For purposes of this 
subsection, "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 
Index for that calendar year. 
For purposes of this subsection, 
"Consumer Price Index" has the same meaning as in Title 36, 
section 5402, subsection 1. 
The expenditure estimates saa~~ 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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
year multiplied by one plus the average real personal income 
growth rate or 
2.75 Q", 
whichever 
is less. 
The 
Highway 
Fund 
highway 
and bridge 
improvement accounts are exempt 
from this 
spending limitation. 
Sec. A-S. 5 MRSA §1710-F, sub-§4 is enacted to read: 
4. 
Appropriation limitation. 
The committee shall make all 
determinations necessary to 
make 
the appropriation limitation 
calculations required under chapter 142. 
Sec. A-9. 5 MRSA §13063-C, sub-§4, ,B, as amended by PL 2003, 
c. 451, Pt. X, §10, is further amended to read: 
B. 
Notwithstanding section 1585, any balance 
rema~n~ng in 
the program after July 31, 2007 must be transferred to the 
Maine Budget Stabilization Fund as established in section 
1916 1532. 
Sec. A-IO. 5 MRSA §17253, sub-§3, as enacted by PL 1995, c. 
464, §15, is amended to read: 
3. 
Components of unfunded liability contribution. 
The 
annual valuation report prepared by the actuary in accordance 
with section 17107 must include identification of the impact on 
the 
employer 
contribution 
rate 
of 
any 
excess 
General 
Fund 
revenues transferred to the Retirement Allowance Fund pursuant to 
section 1511 l5lZ. 
Sec. A-II. 5 MRSA §22001, sub-§13, as enacted by PL 2001, c. 
439, Pt. T, §5, is amended to read: 
13. 
Trust fund. 
"Trust fund" means the Baxter Compensation 
Authority Other Special Revenue Fund account authorized pursuant 
to former section 1513, subsection I-TT-e~-~~s-s~eeesse~. 
Sec. A-12. 25 MRS A §1612, sub-§7, as amended by PL 2003, c. 
451, Pt. X, §13, is further amended to read: 
7. 
Payment 
from 
the 
Maine 
Budget 
Stabil.ization 
Fund. 
Benefits are payable from the Maine Budget Stabilization Fund as 
provided in Title 5, section 1916 1532, subsection 6. 
Sec. A-13. Transition; stabilization fund. 
Any money in the Maine 
Budget Stabilization Fund on the effective date of this Act is 
deemed 
to 
be 
in 
the 
Maine 
Budget 
Stabilization 
Fund 
as 
reconstituted by this Act. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. A-14. Application of appropriation limit; 2006-2007 biennium. 
This Part applies to fiscal biennia beginning on or after July 1, 
2005. 
The appropriation limit for the 2006-2007 biennium must be 
established based on the status of the factors for calculating 
the growth limitations as of December 1, 2004. 
PARTB 
Sec. B-1. 30-A MRSA §706.A is enacted to read: 
§706-A. 
Limitation on county assessments 
... 
..... _-ADaei.llt ... 
i""AioI\Ii~t ... 1 ... 
• Q~n_fi ..... _-..£lA .... 
S'--...lou/l,.lis~e;&,ldol--_inu...---lot&lh .. 
i~G,--...ssUie~c.wt 
.... 
J.o!&.l· O""nlLL' _.I<Iu.un"",lUieUisu;sL-.-.t~ 
~ontext 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Average real personal income growth" means the average 
for the prior 10 calendar years, ending with the most recent 
calendar year for which data is ayailable. of the percent 
change in personal income in this State, as estimated by the 
United States Department of Commerce. 
Bureau of Economic 
Analysis. 
less the percent change in the Consumer Price 
Index 
for 
the 
calendar 
year. 
For 
purposes 
of 
this 
subsection, "Consumer Price Index" has the same meaning as 
in Title 36, section 5402, subsection 1. 
B. 
"County 
assessment" 
means 
total 
annual 
county 
appropriations reduced by all resources available to fund 
those appropriations other than the county tax. 
C. 
"Forecasted inflation" 
means 
the 
average 
amount 
of 
change of the Consumer Price Index for the calendar years 
that are part of the ensuing biennium forecasted by the 
Consensus Economic Forecasting Commission in its November 
1st report of even-number years. 
D. 
"Property growth factor" means the percentage eguivalent 
to a fraction established by a county, whose denominator is 
the total valuation of all municipalities, plantations and 
unorganized territory in the county, and whose numerator is 
the amount of increase in the assessed valuation of any real 
or personal property in those jurisdictions that became 
subject to taxation for 
the first time, 
or taxed as 
a 
separate parcel for the first time for the most recent 
property tax year for which information is available, or 
that has had an increase in its assessed valuation over the 
prior year I s valuation as a result of improvements to or 
expansion of the property. 
E. 
"State and local tax burden" means the total amount of 
state and local taxes paid by Maine residents per $1,000 of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
income, 
as determined annually by the State Tax Assessor 
based on data from the United States Department of Commerce, 
Census Bureau and Bureau of Economic Analysis. 
2. 
County assessment limit. 
Except as otherwise provided 
in this section, a county may not in any year adopt a county 
assessment that exceeds the county assessment limit established 
in this subsection. 
A. 
The county assessment limit for the first fiscal year 
for which this section is effective is the county assessment 
for the county for the immediately preceding fiscal year 
multiplied by one plus the growth limitation factor pursuant 
to subsection 3. 
B. 
The county assessment limit for subseguent fiscal years 
is 
tAe 
county 
assessment 
limit for 
the 
preceding year 
multiplied by 
the 
growth 
limitation factor 
pursuant 
to 
subsection 3. 
C. 
If a previous year's county assessment reflects the 
effect of extraordinary, nonrecurring events, the county may 
submit a written notice to the State Tax Assessor reguesting 
an adjustment in its county assessment limit. 
3. 
Growth limitation factor. 
The growth limitation factor 
is calculated as follows. 
A. 
For 
fiscal years 
when 
the State Tax 
Assessor has 
determined that the state and local tax burden ranks in the 
highest 113 of all states, the growth limitation factor is 
average real personal income growth but no more than 2.75%, 
plus the property growth factor. 
B. 
For fiscal years when the state and local tax burden 
ranks in the middle 1/3 of all states, as determined by the 
State Tax Assessor, 
the growth limitation factor is the 
average 
real 
personal 
income 
growth 
plus 
forecasted 
inflation plus the property growth factor. 
4. 
Adjustment 
for 
ne~ state funding. 
If 
the 
State 
provides net new funding to a county for existing services funded 
in whole or in part by the county assessment, other than reguired 
state mandate funds pursuant to section 5685 that do not displace 
current county assessment expenditures, the county shall lower 
its county assessment limit in that year in an amount egual to 
the net new funds. 
For purposes of this subsection, "net new 
funds" means the amount of funds received by the county from the 
State in that fiscal year, with respect to services funded in 
whole or in part by the county assessment. less the product of 
the following: the amount of such funds received in the prior 
fiscal year multiplied by the growth limitation factor described 
Page ll-LR0328(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
in subsection 3. 
If a 
county receives net new funds in any 
fiscal year for which its county assessment limit has not been 
adjusted as provided in this subsection, the county shall adjust 
its county assessment limit in the following year in an amount 
equal to the net new funds. 
5. 
Exceeding 
cOunty 
assessment 
1imit: 
extraordinary 
circumstances. 
The 
county 
assessment 
limit 
established 
in 
subsection 2 may be exceeded for extraordinary circumstances only 
under the following circumstances. 
A. 
The extraordinary circumstances must be circumstances 
outside 
the 
control 
of 
the 
county 
budget 
authority, 
including: 
(1) 
Catastrophic events 
such as 
natural disaster, 
terrorism, fire, war or riot: 
(2) 
Unfunded or underfunded state or federal mandates; 
(3) 
Citizens' initiatives or other referenda; 
(4) 
Court orders or decrees; or 
(5) 
Loss of state or federal funding. 
Extraordinary 
circumstances 
do 
not 
include 
changes 
in 
economic 
conditions, 
revenue 
shortfalls, 
increases 
in 
salaries or benefits, 
new programs or program expansions 
that go beyond existing program criteria and operation. 
B. 
The county assessment limit may be exceeded only as 
provided in subsection 7. 
C. 
Exceeding the county assessment limit established in 
subsection 
permits the county assessment to exceed the 
county assessment limit only for the year in which the 
extraordinary circumstance occurs and does not increase the 
base for purposes of calculating the county assessment limit 
for future years. 
6. 
Increase 
in 
county 
assessment 
1imit. 
The 
county 
assessment limit established in subsection 2 may be increased for 
other purposes only as provided in subsection 7. 
7. 
Process for exceeding COunty assessment 1imit. 
A county 
may 
exceed or increase the 
county assessment limit only if 
approved by a vote of a majority of all the members of both the 
county budget committee or county budget advisory committee and 
the county commissioners. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Unless 
a 
county 
charter 
otherwise 
provides 
or 
prohibits 
a 
petition and referendum process, if a written petition, signed by 
at least 
10~ of 
the 
number 
of voters 
voting in the last 
gubernatorial election in the county, requesting a vote on the 
question of exceeding the county assessment limit is submitted to 
the county commissioners wi thin 30 days of the commissioners' 
vote pursuant to this subsection, the article voted on by the 
commissioners must be submitted to the legal voters in the next 
regular election or a special election called for that purpose. 
The election must be called, advertised and conducted according 
to the law relating to municipal elections, except that the 
registrar of voters is not required to prepare or the clerk to 
post a new list of voters. 
For the purpose of registration of 
voters, the registrar of voters must be in session the secular 
day preceding the election. 
The voters shall indicate by a cross 
or check mark placed against the word "Yes" or "No" their opinion 
on the article. 
The results must be declared by the county 
commissioners and entered upon the county records. 
8. 
Treatment of surplus; reserves. 
Any county tax revenues 
collected by a county in any fiscal year in excess of its county 
assessment limit. as determined by a final audited accounting, 
must be transferred to 
a 
county tax relief fund, 
which each 
county must establish, and used to reduce county assessments in 
subsequent 
fh~al years. 
Nothing in this subsection limits the 
ability of a county to maintain adequate reserves. 
9. 
Enforcement. 
If a county adopts a county assessment in 
violation of this section, the State Tax Assessor may require the 
county to adjust its county assessment downward in an amount 
equal to the illegal county assessment and impose such other 
penalties as the Legislature may provide. 
Sec. B-2. Application. 
This Part applies to county fiscal 
years that begin on or after July 1, 2005. 
PARTC 
Sec. C-l. 30-A MRSA §5721-A is enacted to read: 
§5721-A. 
Limitation on municipal property tax levy 
1. 
Definitions. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Ayerage real personal income growth" means the average 
for the prior 10 calendar years, ending with the most recent 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
calendar year for which data is available, of the percent 
change in personal income in this State, as estimated by the 
United States Department of Commerce, 
Bureau of Economic 
Analysis, less the percent change in the Consumer Price 
Index 
for 
the 
calendar 
year. 
For 
purposes 
of 
this 
subsection, "Consumer Price Index" has the same meaning as 
in Title 36, section 5402, subsection 1. 
B. 
"Forecasted inflation" 
means 
the 
average 
amount 
of 
change of the Consumer Price Index for the calendar years 
that are part of the ensuing biennium forecasted by the 
Consensus Economic Forecasting Commission in its November 
1st report of even-number years. 
C. 
"Property growth factor" means the percentage eg;uivalent 
to 
a 
fraction 
established 
by 
a 
municipality, 
whose 
denominator is the total valuation of the municipality, and 
whose numerator is the amount of increase in the assessed 
valuation 
of 
any 
real 
or 
personal 
property 
in 
the 
municipality that became subject to taxation for the first 
time, or taxed as a separate parcel for the first time for 
the most recent property tax year for which information is 
avail~ble, or that has had an increase in its assessed 
valuation over the prior Year's valuation as a result of 
improvements to or expansion of the property. 
D. 
"Property tax levy" means the total annual municipal 
appropriations, excluding assessments properly issued by a 
county Qf which the municipality is a member and amQunts 
governed by and appropriated in accordance with Title 20-A, 
chapter 606-B, appropriated as the lQcal share of the cost 
of essential programs and services under Title 20-A, chapter 
606-B, 
to 
pay 
assessments 
properly 
issued by 
a 
school 
administrative unit or 
tuition for 
students 
or 
amounts 
attributable to a tax increment financing district agreement 
or similar special tax district. reduced by all resources 
available 
to 
fund 
those 
appropriations 
other 
than 
the 
property tax. 
E. 
"State and local tax burden" means the tQtal amount of 
state and local taxes paid by Maine residents per $1,000 of 
income, 
as determined annually by the State Tax Assessor 
based on data from the United States Department of Commerce, 
Census Bureau and Bureau of Economic Analysis. 
2. 
Property tax levy limit. 
Except as otherwise provided 
in this sectiQn, 
a municipality may not in any year adopt a 
property tax 
levy that exceeds 
the property tax levy limit 
established in this subsection. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
A. 
The property tax levy limit for the first fiscal year 
for which this section is effective is the property tax levy 
for the municipality for the immediately preceding fiscal 
year multiplied by one plus the growth limitation factor 
pursuant to subsection 3. 
B. 
The property tax levy limit for subsequent fiscal years 
is the property tax levy limit for 
the preceding year 
multiplied 
by 
the 
growth 
limitation factor 
pursuant 
to 
subsection 3. 
C. 
If a 
previous year's property tax levy reflects the 
effect 
of 
extraordinary. 
nonrecurring 
events. 
the 
municipality may submit a written notice to the State Tax 
Assessor requesting an adjustment in its property tax levy 
limit. 
3. 
Growth limitation factor. 
The growth limitation factor 
is calculated as follows. 
A. 
For 
fiscal 
years 
when 
the State Tax 
Assessor has 
determined that the state and local tax burden ranks in the 
highest 1/3 of all states. the growth limitation factor is 
average real personal income growth but no more than 2.75%. 
plus the property growth factor. 
B. 
For fiscal years when the state and local tax burden 
ranks in the middle 1/3 of all states. as determined by the 
State Tax Assessor. 
the growth limitation factor is the 
average 
real 
personal 
income 
growth 
plus 
forecasted 
inflation plus the property growth factor. 
4. 
Adjustment 
for 
new 
state 
funding. 
If 
the 
State 
provides net new funding to a municipality for existing services 
funded in whole or in part by the property tax levy. other than 
required state mandate funds pursuant to section 5685 that do not 
displace current property tax 
expenditures. 
the municipality 
shall lower its property tax levy limit in that year in an amount 
equal to the net new funds. 
For purposes of this subsection. 
"net 
new funds" 
means 
the 
amount 
of 
funds 
received by the 
municipality from the State in that fiscal year. with respect to 
services funded in whole or in part by the property tax levy. 
less the product of the following: 
the amount of such funds 
received in the prior fiscal year multiplied by the 
growth 
limitation factor described in subsection 3. 
If a municipality 
receives net new funds in any fiscal year for which its property 
tax 
levy limit has 
not been adjusted as 
provided in this 
subsection. the municipality shall adjust its property tax levy 
limit in the following year in an amount equal to the net new 
funds. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
5. 
Exceeding 
propertv 
tax 
levy 
limit; 
extraordinary 
circumstances. 
The 
property 
tax 
levy 
limit 
established 
in 
subsection 2 may be exceeded for extraordinary circumstances only 
under the following circumstances. 
A. 
The extraordinary circumstances must be circumstances 
outside 
the 
control 
of 
the 
municipal 
legislative 
body, 
including: 
(1) 
Catastrophic events 
such as 
natural disaster, 
terrorism, fire, war or riot: 
(2) 
Unfunded or underfunded state or federal mandates; 
(3) 
Citizens' initiatives or other referenda: 
(4) 
Court orders or decrees: or 
(5) 
Loss of state or federal funding. 
$xtxaordinar~ circumstances 
do 
not 
include 
changes 
in 
§cgnomic 
cQn~Utions« 
reyeny,e 
shortfalls, 
increases 
in 
sa1a.riu or benefits« 
new programs or program expansiolls 
that go beyond existing program criteria and operation. 
B. 
The property tax levy limit may be exceeded only as 
provided in subsectioll 7. 
C. 
Exceeding the property tax levy limit established in 
subsection 2 permits the property tax levy to exceed the 
property tax levy limit only for the year in which the 
extraordinary circumstance occurs and does not increase the 
base for purposes of calculating the property tax levY limit 
for future years. 
6. 
Increase in prwerty tax levy limit. 
The property tax 
levy limit established in subsection 2 may be increased for other 
purposes only as provided in SUbsection 7. 
7. 
Process for exceeding property tax 
levy limit. 
A 
municipality may exceed or 
~ ncrease the property tax levy limit 
only by the following means. 
A. 
If the municipal budget is adopted by town meeting or by 
referendum, the property tax levy limit may be exceeded by 
the Same process that applies to adoption of the municipal 
budget except that the vote must be by written ballot on a 
separate article that specifically identifies the intent to 
exceed the property tax levy limit. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
B. 
If the municipal budget is adopted by a town councilor 
city council, the property tax levy limit may be exceeded 
only by a majority vote of all the elected members of the 
town councilor city council on a 
separate article that 
specifically identifies the intent to exceed the property 
tax 
levy 
limit. 
Unless 
a .municipal 
charter 
otherwise 
provides or prohibits a petition and referendum process, if 
a written petition, signed by at least 10% of the number of 
voters voting in the last gubernatorial election in the 
municipality, requesting a vote on the question of exceeding 
the property tax levy limit is submitted to the municipal 
officers within 30 days of the council's vote pursuant to 
this paragraph, the article voted on by the council must be 
submitted to the legal voters in the next regular election 
or a special election called for that purpose. 
The election 
must be called, advertised and conducted according to the 
law 
relating 
to 
municipal 
elections, 
except 
that 
the 
registrar of voters is not required to prepare or the clerk 
to 
post 
a 
new 
list of 
voters. 
For 
the 
purpose 
of 
registration of voters, the registrar of voters must be in 
session the secular day preceding the election. 
The voters 
shall indicate by a cross or check mark placed against the 
word 
"Yes" or 
"No" 
their opinion 
on 
the article. 
The 
results must be declared by the municipal officers and 
entered upon the municipal records. 
8. 
Treatment of 
su~lus; reserves. 
Any 
property 
tax 
revenues collected by a municipality in any fiscal year in excess 
of its property tax levy limit, as determined by a final audited 
accounting, must be transferred to a property tax relief fund, 
which 
each municipality must 
establish, 
and 
used 
to 
reduce 
property tax levies in subsequent fiscal years. 
Nothing in this 
subsection limits the ability of 
a 
municipality to maintain 
adequate reserves pursuant to section 5801. 
9. 
Fractional divisions. 
A municipality may, 
consistent 
with Title 36, section 710, exceed its property tax levy limit in 
such reasonable amount as necessary to avoid fractional divisions. 
10. 
Enforcement. 
If a municipality adopts a property tax 
levy in violation of this section, the State Tax Assessor may 
require the municipality to adjust its property tax levy downward 
in an amount equal to the illegal property tax levy and impose 
such other penalties as the Legislature may provide. 
Sec. C-2. 30-A MRSA §7102, as enacted by PL 1987, c. 737, 
Pt. A, §2 and Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; 
and c. 104, Pt. C, §§8 and 10, is further amended by adding at 
the end a new paragraph to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
The property tax levy limits set forth in section 5721-A 
apply to the budgets and property tax levies of plantations. 
Sec. C·3. Application. 
This Part applies to municipal fiscal 
years that begin on or after July 1, 2005. 
PARTD 
Sec. D·l. 5 MRSA §17154, sub.§6, ~E, as amended by PL 2003, c. 
504, Pt. B, §1, is further amended to read: 
E. 
Notwithstanding this section, the employer retirement 
costs related to the retirement system applicable to those 
teachers 
whose 
funding 
is provided directly or 
through 
reimbursement from private or public grants must be paid by 
local school systems from those funds. 
"Publ ic grants" does 
not 
include 
state 
or 
local 
funds 
provided 
to 
school 
administrative units under Title 20-A, chapters 315 T-ege and 
606-B. 
Sec. D·2. 20·A MRSA §l~ sub·§§17 and 18, as amended by PL 
1999, c. 75, §1, are further amended to read: 
17. 
Major capital costs. 
"Major capital costs" is defined 
in section 1§eg6T-s~Bsee6ieH-l+ 15672, subsection 18-A. 
18. 
Minor capital costs. 
"Minor capital costs" is defined 
in section 1§eQ6r-s1:lBsee6ieH-18 15672, subsection 20-A. 
Sec. D·3. 20·A MRSA §1301, sub·§l, ~A, as amended by PL 1993, 
c. 410, Pt. F, §3, is further amended to read: 
A. 
Under a property valuation method, municipalities in a 
district shall share costs in the same proportion as each 
municipality's fiscal capacity as defined in section lseQ6T 
s1:l:esee&i-G-:a--~~-A 15672, subsection 23 is to the district's 
fiscal capacity. 
Sec. D·4. 20·A MRSA §1301, sub.§l, ~B, as amended by PL 2001, 
c. 375, §1, is further amended to read: 
B. 
Under an alternate plan approved by the state board and 
by 
a 
vote 
of 
the 
legislative 
bodies 
of 
the 
school 
administrative units forming the district and based on: 
(1) 
The number of resident pupils in each town; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(2) 
The fiscal capacity of each member municipality as 
def ined 
in 
section 
UiaG6y---s-ub&e-o-t.-i-on---11-A 
15672, 
subsection 23; 
(3) 
Any combination of subparagraphs (1) and (2); or 
(4) 
Any other factor or combination of factors that 
may, but need not, include subparagraphs (1) and (2). 
Sec. D·5. 20·A MRSA §1307, sub·§3, as amended by PL 1997, c. 
68, §l, is further amended to read: 
3. 
Summary action. 
To summarize the action taken on the 
school budget for the purposes of determining state and local 
cost sharing, the articles prescribed in chapter aGa ~ 
must 
also be voted upon. 
Sec. D·6. 20·A MRSA §1307, sub.§4, as enacted by PL 1997, c. 
68, §2, is amended to read: 
4. 
Budget 
explanation. 
The 
warrant 
may 
include 
an 
explanation 
of 
the 
relationship 
between 
warrant 
articles 
authorizing 
specific 
line 
item 
expenditures 
as 
provided 
in 
subsection 1 and the articles prescribed in chapter a9a 606-B 
summarizing the budget proposal. 
Sec. D·7. 20·A MRSA §1308, as amended by PL 1999, c. 710, 
§6, is further amended to read: 
S1308. 
Failure to pass budget 
If 
a 
budget 
for 
the operating of the district is not 
approved prior to July 1st, the latest budget as submitted by the 
board of directors is automatically considered the budget for 
operational expenses for the ensuing year until a final budget is 
approved, except that, when the school board delays the school 
budget meeting in accordance with section 19911 ~, subsection 
2, paragraph C, the operating budget must be approved within 30 
days of the date the commissioner notifies the school board of 
the amount allocated to the 
school unit under section 19a16 
15689-B or the latest budget submitted by the directors becomes 
the operating budget for the next school year. 
Sec. D·8. 20·A MRSA §1311, sub·§l, 1fC, as amended by PL 1993, 
c. 372, §4, is further amended to read: 
C. 
Minor 
capital 
costs 
as 
defined 
in 
section 
19a96r 
s~asee~ieB-18 15672, subsection 20-A. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D-9. 20-A MRSA §1351, sub-§l, 1rK, as amended by PL 1999, 
c. 75, §2, is further amended to read: 
K. 
To borrow funds for minor capital costs as defined in 
section ~aeQ6T-saBsee~ieR-~8 15672, subsection 20-A. 
Sec. D-IO. 20-A MRSA §1.107, sub-§2, as amended by PL 1999, c. 
75, §3, is further amended to read: 
2. 
Expense of keeping the school open. 
If the voters vote 
to keep the school open, the member municipality is liable for 
some additional expense for actual local operating costs and 
transportation 
operating 
costs 
as 
defined 
in 
section 
~aeG~ 
15672. 
The determination of costs is subject to the approval of 
the commissioner. 
The cost to be borne by the town voting to 
keep an elementary school open is the amount that would be saved 
if the school were closed. 
Any additional costs that must be 
borne by the member municipality must be part of the article 
presented to the voters at the meeting to determine whether the 
school should remain open. 
Sec. D·ll. 20·A MRSA §1701, sub·§3, as amended by PL 1991, c. 
429, §4, is further amended to read: 
3. 
Time and place. 
The district school committee shall 
call an annual budget meeting on or before June 30th at an hour 
and 
in 
a 
location within the 
community 
school district it 
designates, except that the school committee may delay the annual 
budget meeting to 
a 
date after July 1st in accordance with 
section ~5e~7 ~, subsection 2, paragraph C. 
Sec. D·12. 20·A MRSA §1701, sub·§9, 1rA, as amended by PL 1999, 
c. 710, §8, is further amended to read: 
A. 
The budget format may be determined by the voters of a 
community school district by adoption of 
an appropriate 
warrant article at 
a 
properly called election held in 
accordance with the procedure set forth in section 
~§il1 
15693, subsection 6. 
Sec. D·13. 20·A MRSA §1701, sub·§12, as amended by PL 1999, c. 
710, §10, is further amended to read: 
12. 
State-local allocations. 
To summarize the action taken 
on the budget for the purposes of determining the 
community 
school 
district's 
state-local 
allocations, 
the 
articles 
prescribed in chapter eGe 606-B must also be voted on. 
Sec. D-14. 20·A MRSA §1701-B, sub·§5, as enacted by PL 1999, 
c. 710, §11, is amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
5. 
Failure to approve budget. 
If 
the 
voters 
do 
not 
validate the budget approved in the district budget meeting at 
the 
budget 
validation 
referendum 
vote, 
the 
district 
school 
committee 
shall 
hold 
another 
district 
budget 
meeting 
in 
accordance with section 1701, subsection 8 at least 10 days after 
the referendum to vote on a budget approved by the committee. 
The 
budget 
approved at the district budget meeting must 
be 
submitted 
to 
the 
voters 
for 
validation 
at 
referendum 
in 
accordance with this section. 
The process must be repeated until 
a budget is approved at a district budget meeting and validated 
at referendum. 
If a budget is not approved and validated before 
July 1st of 
each year, 
the latest budget submitted by 
the 
committee is automatically considered the budget for operational 
expenses for the ensuing year until a final budget is approved, 
except that when the school committee delays the district budget 
meeting in accordance with section 1ge17 15693, subsection 2, 
paragraph C the operating budget must be approved within 30 days 
of the date the commissioner notifies the school committee of the 
amount allocated to the school unit under section 15e16 15689-B 
or the latest budget submitted by the committee becomes 
the 
operating budget for the next school year. 
Sec. D·15. 20·A MRSA §1704, sub·§l, ,B, as amended by PL 1993, 
c. 410, Pt. F, §4, is further amended to read: 
B. 
The 
fiscal 
capacity of 
each member 
municipality as 
defined in section 1§eg~7-~~~-11-A 15672, subsection 
1].; 
Sec. D·16. 20·A MRSA §4Q03·A is enacted to read: 
§4003-A. 
Hazardous chemicals 
The 
commissioner 
shall 
establish 
rules 
governing 
the 
purchase and storage of hazardous chemicals in schools. 
Sec. D·17. 20·A MRSA §4254, sub·§l, as amended by PL 1997, c. 
534, §3, is further amended to read: 
1. 
Allowable costs. 
Allowable 
costs 
are 
the 
implementing approved plans; these costs may be added 
school unit's subsidizable costs under chapter ege ~. 
cost 
to 
of 
the 
Sec. D·18. 20·A MRSA §5401, sub·§15, ,C, as 
amended by PL 
2001, c. 667, Pt. C, §11, is further amended to read: 
C. 
A school board may obtain a short-term loan or enter 
into a lease-purchase agreement to acquire school buses if 
the loan is approved by the unit's legislative body or if 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
funds 
that 
can 
be 
used 
for 
the initial 
lease-purchase 
payment have been appropriated by the unit's legislative 
body. 
The term of a loan or a lease-purchase agreement may 
not exceed 5 years. 
The commissioner shall establish a 
maximum amount for annual-term purchases in excess of the 
amount established in paragraph A. 
Beginning in fiscal year 
6GG6-G4 2005-06, these expenditures must be subsidized in 
accordance with seesieB-±eaG6T-s~BSeesieB-6a-A chapter 606-B. 
Sec. D-19. 20-A MRSA §6303, as enacted by PL 1995, c. 427, 
§1, is amended to read: 
§6303. Medicaid for health and human services 
A school administrative unit may receive funds 
from the 
Medicaid program pursuant to the United States Social Securi ty 
Act, 
United States Code, 
for the prov1s1on of preventive 
health, health, habilitation, rehabilitation and social services 
to eligible students iB-ae€e£4afi€e-~~~~-~-~~~~~r-s~BseesieB 
±a. 
Sec. D-20. 20-A MRSA §6651, sub-§3, as amended by PL 1989, c. 
414, §16, is repealed. 
Sec. D-21. 20-A MRSA §6654, as amended by PL 1991, c. 550 and 
PL 2003, c. 689, Pt. B, §6, is further amended to read: 
§6654. School-based child care grants 
The 
department 
and 
the 
Department 
of 
Health 
and 
Human 
Services 
are 
authorized 
to 
provide 
assistance 
to 
school 
administrative 
units 
to 
assist 
the 
units 
in 
establishing 
school-based child care services. 
ABy--a&S-i~-an€-e--p-F-G-... j,.de.d.-fR~st 
pFevi4e--~-~~--~--~arS-~-e£pefi44~~£e--e~-~~-~~~--is 
eeBsiaeFea-~~~r~-~--~eea~-~~-iR-~~~~~~-~~-~B~~~S 
ea~easieBa~-~~~-€~~~--~B-~~--9Q9~---~-~~~--has 
~~±±-~~~~~-~~-aSfRiBis~eF-~-~~-pFe~FafR-~~--~-epeFa~es 
~BaeF-shis-seesieBT 
Sec. D-22. 20-A MRSA §7734-A, first " as repealed and replaced 
by PL 1999, c. 296, §10, is amended to read: 
In addition to the programs authorized in this chapter, 
school administrative units may provide services for children who 
are disabled in a manner consistent with sections 4251 to 4254, 
and 
the 
cost 
of 
such 
services 
is 
subsidizable 
as 
special 
education costs under chapter aGa 606-B. 
Sec. D-23. 20-A MRSA §8301-A, sub-§§4 and 9, as enacted by PL 
1991, c. 518, §2, are amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
4. 
Municipality. 
"Municipality" has the same meaning as in 
section laaG~T-s~eseetieR-lg lS672, subsection 21. 
9. 
State subsidy. 
"State subsidy" has the same meaning as 
in section laeG~T-s~eseetieR-6e lS672, subsection 31 A. 
Sec. D-24. 20-A MRSA §8351, as amended by PL 1991, c. S18, 
§9 and c. 716, §6 and PL 2003, c. 54S, §S, is further amended to 
read: 
§835l. State aid for career end technical education centers 
and career and technical education regions 
State aid for centers and regions must be administered in 
accordance with chapters aGe ~ 
and 609 and Title 20, section 
3457. 
Sec. D-2S. 20-A MRSA §8402, as corrected by RR 2003, c. 2, 
§5S, is amended to read: 
§8402. Programs 
A center shall provide programs of career and technical 
education. 
Programs 
of 
career 
and 
technical 
education 
are 
eligible to receive state subsidy pursuant to chapters aGa ~ 
and 609. 
All programs of career and technical education offered 
by a center must be approved by the commissioner pursuant to 
section 8306-A. 
The programs must offer a sequence of courses 
that are directly related to the preparation of individuals for 
employment in current or emerging occupations and may include 
training and education in academic and business skills preparing 
students to further their education at the community college or 
other 
college 
level 
or 
allowing 
students 
to 
use 
trade 
and 
occupational skills on other than an employee basis. 
Programs of 
career 
and 
technical 
education 
may 
also 
include alternative 
educational 
programs 
and 
training 
and 
education 
in 
music, 
athletics, art and other activities approved by the commissioner 
pursuant to section 8306-A. 
Sec. D-26. 20-A MRSA §8404, sub-§3, ~C, as corrected by RR 
2003, c. 2, §S9, is amended to read: 
so 
C. 
Shall, in the event that the school boards of School 
Administrative 
District 
No. 
27, 
School 
Administrative 
District No. 33 and Madawaska School Department enter into a 
cooperative agreement pursuant to section 8401 and a 
new 
career 
and 
technical 
education 
center 
in Maine 
School 
Administrative District No. 33 becomes operational, devise a 
cost sharing formula for 
the center established thereby 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
pertaining to the cost of career and technical education 
programs that exceed expenditures made for those programs in 
the base year as adjusted pursuant to section 19a9~ 1568l-A, 
subsection --§--
.4. 
and to the local share of debt service 
costs attributable to construction of the center in School 
Administrative District No. 33; 
Sec. D·27. 20·A MRSA §8451·A, as corrected by RR 2003, c. 2, 
§6l, is amended to read: 
§8451-A. Programs 
A region shall provide programs of career and technical 
education. 
Programs 
of 
career 
and 
technical 
education 
are 
eligible to receive state subsidy pursuant to chapters ege ~ 
and 609. 
All programs of career and technical education offered 
by a 
region must be approved by the commissioner pursuant to 
section 8306-A. 
The programs must offer a sequence of courses 
that are directly related to the preparation of individuals for 
employment in current or emerging occupations and may include 
training and education in academic and business skills preparing 
students to further their education at the community college or 
college level or allowing students to use trade and occupational 
skills on other than an employee basis. 
Programs of career and 
technical education 
may 
also 
include alternative educational 
programs and training and education in music, athletics, art and 
other activities approved by the commissioner pursuant to section 
8306-A. 
Sec. D·28. 20·A MRSA §8601·A, sub·§6, as enacted by PL 1991, 
c. 518, §33, is amended to read: 
6. 
Municipality. 
"Municipality" has the same meaning as in 
section ±Be9&T-s~BseeeieB-±9 15672, subsection 21. 
Sec. D·29. 20·A MRSA §8605, sub·§2, 1fB, as amended by PL 1995, 
c. 665, Pt. J, §1, is further amended to read: 
B. 
The 
unit in which 
such 
a 
person resides 
must 
be 
reimbursed in accordance with ehape8F&-ege-8as-ege-A chapter 
606-B. 
Sec. D·30. 20·A MRSA §8606·A, sub·§2, 1fC, as amended by PL 
1991, c. 518, §38, is further amended to read: 
C. 
The recommendation in the commissioner I s funding level 
certification must include local program cost adjustment to 
the equivalent of the year prior to the year of allocation. 
This 
adjustment 
is 
calculated 
according 
to 
the 
same 
guidelines established, for purposes of chapter age 606-B, 
by section ±9999 15689-C, subsection 3. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D·31. 20·A MRSA §15622 is enacted to read: 
§15622. 
Repeal 
This chapter is repealed July 1, 2005. 
Sec. D·32. 20·A MRSA §15671, sub·§l, as amended by PL 2003, c. 
712, §9, is further amended to read: 
1. 
State and local partnership. 
The State and each local 
school 
administrative 
unit 
are 
jointly 
responsible 
for 
contributing to the cost of the components of essential programs 
and services described in this chapter. 
Except as otherwise 
provided in this subsection, for each fiscal year, the total cost 
of the components of essential programs and services may not 
exceed the prior fiscal year's costs multiplied by one plus the 
average real personal income growth rate as defined in Title 5, 
section 1665, subsection 1, except that in no case may that rate 
exceed 2.75°'9. 
For fiscal years commencing after the state tax 
burden ranks in the middle 1/3 of all states, as calculated and 
certified by the State Tax Assessor, 
the total cost of the 
components of essential programs and services may not exceed the 
prior fiscal year's costs multiplied by one plus the average real 
personal income growth rate as defined in Title 5, section 1665, 
subsection 1. 
The Legislature, by an affirmative vote of each 
House, may exceed the limitations on increases in the total cost 
of the components of essential programs and services provided in 
this subsection, as long as that vote is taken upon legislation 
stating that it is the Legislature's intent to override the 
limitation for that fiscal year. 
The state contribution to the 
cost of 
the 
components 
of essential 
programs 
and 
services, 
exclusive of federal funds that are provided and accounted for in 
the cost of the components of essential programs and services, 
must be made in accordance with this subsection: 
A. 
The level of the state share of funding attributable to 
the 
cost 
of 
the 
components 
of 
essential 
programs 
and 
services must be at least 50'l-o of eligible state and local 
General Fund education costs statewide, no later than fiscal 
year 6991-98 2006-07; and 
B. 
By fiscal year 6QQ9-;1,Q 2008-09 the state share of the 
total cost of funding public education from kindergarten to 
grade 12, as described by essential programs and services, 
must be 55%. 
Beginning in fiscal year 2005-06 and in each 
fiscal year until fiscal year 
6QQ9-;1,Q 
2008-09, the state 
share of essential programs and services described costs 
must increase toward the 55% level required in fiscal year 
69Q9-;1,Q 2008-09. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Beginning 
in fiscal 
year 
2005-06 
and 
in 
each 
fiscal 
year 
thereafter, 
the 
commissioner 
shall 
use 
the 
funding 
level 
determined in accordance with this section as the basis for a 
recommended funding level for the state share of the cost of the 
components of essential programs and services. 
Sec. D·33. 20·A MRSA §15671, sub·§§2, 3, 4 and 6, as enacted by 
PL 2001, c. 660, §1, are amended to read: 
2. 
Per-pupil rate amounts. 
A per-pupil 
~HaFaBtee rate 
represents the an amount of funds that is to be made available 
for each subsidizable pupil. 
~hFee-i>fH:~-l-~F-an-t-ee--aFReHBts 
mHst-ae-~~-l~~~~~~4~-~~-l~~~~~-~~~&~-ei~~e~eRee&~--eBe 
~eF-~~~~~~~~-~~aee-~7-~-~~-~EaQe6-~-~-g-~~-~eF 
~FaQes-~-~-1.r--~ae6e-~~~-~~&~&R~&-mH6~-~~~~~-as 
appFepF~a~e--feE--~~~--~~--~~~r---~&e--peF-pHpi~ 
~HaFaB~ee-~~~~-~~~-&RR~al-~-ef--&~~~~~-~-mateFia~ 
FeseHFees-~a~~-~~~~~~~~~~~~-a~~eeateQ-~-~-~~pG~~~-BasisT 
ba~e~eFies-~--s~&~~~~-~££--~~-aEe-~-~e~*ews+ Per-pupil 
rates are determined pursuant to section 15676. 
AT--~~-~~~r-iRela4i~-Ee~HJaE-~~~~-sHB~ee~ 
~eaeheFST-e4~€~~~eR~~-~~~~-~~r-~~&~&~~r-hea~th 
seFvieesT-~~-aemiBistFatieBT-~~--eF-~~~~-sta~~ 
aBe-sHBstitHte-teaeheFsf 
bT-----~~~~-l~~~4----~~~-----~&e~~~~----pFe~essieBa~ 
eeve*epmeB~T---~R&~~~~~R&~---~~~--~~~~~---s~HeeBt 
assessmeB~T-~~~-&RG-€e€~EE~€~~aE-~-eH~FaeHFFieH*aF 
pFe~FaFRs.,.-aBEl 
~T--~~-~~~~~~~~¥~-HRi~-~~~r-~~~~-sys~effi 
aemiBis~Fa~ieB-aBe-epeFatieB-aBEl-ffiaiBteBaBee-e~-F*aBtT 
3. 
Specialized student populations. 
In recognition that 
educational needs can be more costly for some student populations 
than for others, meei~ieEl-pe~-~~-l-~~~~~~~-wei~htee 
FHFi*--~~--m~6~--~--€~~~~~--~e~--~~~~--stHeeBt 
FeFH~a~~eBs 
special 
student 
populations 
are 
specifically 
addressed in sections 
15675 
and 15681-A. 
subsection 2. 
~he 
speeia*~Bee-s~HeeBt-FepH*atieBs-te-Be-aEleFessee-aFe+ 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
4. 
Educational cost components outside the per-pupil rate. 
A per-pupil 
~~a~aR~ee rate 
is 
not 
a 
suitable 
method 
for 
allocation of all educational cost components. 
These components 
may 
include, 
but 
are 
not 
limited 
to, 
debt 
service, 
transportation, bus purchases, vocational education, small school 
adjustments, 
teacher 
educational 
attainment 
and 
longevity of 
service and adjustments to general purpose aid. 
The 
funding 
methodology 
of 
these 
educational 
cost 
components 
must 
be 
established based on available research. 
6. 
Targeted funds. 
Funds for technology, 
assessment and 
the costs of additional investments in educating children in 
kindergarten to grade 2 as described in section 
15681 must be 
provided as targeted grants. 
School administrative units shall 
submit 
a 
plan for the use of these funds 
and shall receive 
funding based on approval of the plan by the commissioner. 
Sec. D·34. 20·A MRSA §15671, sub.§7, as amended by PL 2003, c. 
712, §10, is further amended to read: 
7. 
Transition; annual targets. 
To achieve the system of 
school funding based on essential programs and services required 
by this section, the following annual targets are established. 
A. 
The base total calculated pursuant to section 
15683, 
subsection 2 is subject to the following annual targets 
~e~ 
~he-~~~-p~e~~ams-~-6e~v~ee6-~~~~~~-pe~eeR~a~eT 
eHe~~Q~R~-~~~-ees~-~1~~4~--QeB~-~~~-a~~eea~~eR 
aRQ-aQ~~6~meR~sT-a~e-as-~e~~ews. 
(1) 
For fiscal year 2005-06, the target is 84%. 
(2 ) 
For fiscal year 2006-07, the target is 88% 90%. 
( 3) 
For fiscal year 2007-08, the target is 96% 95°'0. 
(4) 
For fiscal year 2008-09 and sus;;s;;eeding :legrs, the 
target is 99% 100°'0. 
+§~--¥~-~~~-yea~-6gg9-~g-a£~-~~-yea~~r-~Re 
~a!'~e~-~s-;!,gg% ... 
B. 
The annual targets for the state share percentage of the 
statewide adjusted total cost of the components of essential 
programs gnd services are as follows. 
(1) 
For fiscal year 2005-06, the target is 52.6%. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(2) 
For fiscal year 
2006-07, 
the target is 
§6Te% 
53.86°-0. 
(3) 
For fiscal year 2007-08, the target is §~% 54.44%. 
(4) 
For fiscal year 2008-09 and succeeding years, the 
target is §4% 55%. 
+§+--¥~-~-~~-yea~-6999-l9-~~~-~~-yea~&r-SRe 
sa~4!Jes-~s-§§%T 
Sec. D·35. 20·A MRSA §15671·A, as enacted by PL 2003, c. 
712, §ll, is amended to read: 
§15671-A. Property tax contribution to public education 
1. 
context 
Definitions. 
As 
used 
in 
otherwise 
indicates, 
the 
this 
section, 
following 
terms 
unless 
have 
the 
the 
following meanings. 
A. 
"Funding public education from kindergarten to grade 12" 
means providing the cost of funding the essential programs 
and services described in this chapter P*l:ls. including the 
total allocations for p~94!J~am-e96~ other subsidizable costs, 
debt service costs and adjustments. 
B. 
"Local cost share expectation" means the maximum amount 
of money for funding public education from kindergarten to 
grade 12 that may be derived from property tax for the 
required local contribution established in section 15688, 
subsection -~- 3-A. 
C. 
"Statewide total local share" means the local share, 
calculated on a statewide basis. of the statewide total cost 
of the components of essential programs and services as 
adjusted pursuant to section 15671, subsection 7 to reflect 
the application of the transition targets to the base total 
component. 
D. 
"Statewide valuation" means the certified total state 
valuation for the year prior to the most recently certified 
total state valuation for all municipalities statewide. 
2. 
Local cost share expectation. 
~Re--:J:.G.a.a.1--~--sRa~e 
eHpeesasi9B---i&--~~I~~--~---fe**ewsT 
This 
subsection 
establishes 
full-value 
education 
mill 
rates 
that 
limit 
a 
municipality's required local contribution pursuant to section 
15688, subsection 3-A. 
The full-value mill rates represent rates 
that. if applied to the statewide valuation, would produce the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
statewide total local share. 
Notwithstanding any other provision 
of law, with respect to the assessment of any property taxes for 
property tax years beginning on or after April 1, 
2005, 
a 
municipality's required local contribution determined pursuant to 
section 15688, subsection 3-A establishes the local cost share 
expectation for that municipality. 
A. 
~e~w~~Rs~aReiR~-aRY-~~-~~~~~--~r-w~~a-~esFee~ 
~e-~~-assessffieR~-~~-aRy--~~~~~y-~~~--~~~-~~~~-~aH 
yea~s-~~~~-e~-~~~-~~~~-lT-~~-~~~-s~9see~~eR 
es~a9±~sRes-~~-~~e~~--ees~-~~-eHFe€~a~4eR--~h&~-~-ge 
assessee-eR-~ke-¥~~~-~~~~~~--~-~~~~S&-e~-E~ReiR~ 
F~9±~e--~~~--~~--*~Ree~~a~~eR--~~-~r~--~6T 
The 
commissioner shall annually by February 1st notify each 
school 
administrative 
unit 
of 
its 
local 
cost 
share 
expectation. 
Each 
superintendent 
shall 
report 
to 
the 
municipal officers whenever a school administrative unit is 
notified of the local cost share expectation or a change 
made in the local cost share expectation resulting from an 
adjustment. 
B. 
For property tax years beginning on or after April 1, 
2005, 
the 
commissioner 
shall 
calculate 
the 
full-value 
education mill rate that is required to raise the statewide 
total e~-~ke local 
ees~ share 
eHFee~a~~eR. 
The full-value 
education mill rate is calculated for each fiscal year by 
dividing the applicable ~aH-yeaE-~~~~--~a&-F~e}ee~ee 
ees~-~-~~~-~~~~-ee~ea~ieR-~E~~~~~~-~-~~aee 
statewide total local share by the ee~~i~ieG-~e~a±-s~a~e 
applicable statewide valuation 
Ee~-~~-yeaE--f"~~~--t&--~Re 
ffieS~--Ee€eR~~y--e~~~~~~-~~~--~~~--¥a~ae~~&--~eF--all 
ffi~R~e~Fali~ies. 
The full-value education mill rate must 
decline over the period from fiscal year 2005-06 to fiscal 
year 6QQ9-±Q 2008-09 and may not exceed 9.0 mills in fiscal 
year 2005-06 and may not exceed 8.0 mills in fiscal year 
6QQ9-~Q 2008-09. 
The full-value education mill rate must be 
applied according to section 15688, 
subsection --~-
3-A, 
paragraph A to determine a municipality's local cost share 
expectation. 
Full-value 
education 
mill 
rates 
must 
be 
derived according to the following schedule. 
(1) 
For the 2005 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 47. 4'l-o statewide total 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 41T4% 46.14% statewide total local share in fiscal 
year 2006-07. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(3) 
For the 2007 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 47TQ% 45.56% statewide total 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 4STQ% 45.0% statewide total local share in fiscal 
year 2008-09. 
t9+--~~-~he--6QQ~-~~~~-~aH--y&a~r-~~-~Qll-valQe 
eQQeae~eB-~~~--~~-46-~~-am9~B~-£~~£~~~-~~-FesQle 
~B-a-4i~Q%-*eea*-6aaFe-~B-~~sea*-yeaF-d009-*OT 
3. 
Exceeding 
maximum 
local 
cost 
share 
expectations; 
separate article. 
Beginning with the 2005-2006 school budget, 
the legislative body of a school administrative unit may adopt 
pFepeF~y-~aH-~a~es an additional local appropriation that eHeeeQ 
exceeds the local cost share expectation established by section 
15688, subsection --l--
3-A, paragraph A only if that action is 
approved 
in 
a 
separate 
article 
by 
a 
vote 
of 
the 
school 
administrative unit's legislative body through the same process 
that the school budget is approved in that school administrative 
uni t 
and in accordance with section 15690. 
If that additional 
appropriation causes the school administrative unit to exceed the 
maximum state and local spending target described in subsection 
4, the reguirements of subsection 5 apply. 
4. Maximum state and local spending target. 
The maximum 
state and local spending target for a school administrative unit 
is the Sum of the following costs calculated by the commissioner 
for the unit: 
A. 
The base total calculated pursuant to section 15683, 
subsection 1 without the adjustment for transition targets 
under section 15671, subsection 7, paragraph A: 
B. 
Other subsidizable costs described in section 15681-A: 
and 
C. 
The debt service allocation pursuant to section 
15683-A. 
The commissioner shall annually notify each school administrative 
unit of its maximum state and local spending target. 
5. 
Exceeding maximum state and local spending target. 
If 
the 
sum 
of 
a 
school 
administrative 
unit's 
reguired 
local 
contribution determined pursuant to section 15688, subsection 3-A 
plus the state contribution as calculated pursuant to section 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
15688, 
subsection 3-A, 
paragraph D plus any additional local 
amount 
proposed 
to 
be 
raised 
pursuant 
to 
section 
15690, 
subsection 3 
exceeds the school administrative unit's maximum 
state 
and 
local 
spending 
target 
established 
pursuant 
to 
subsection 4, the following provisions govern approval of that 
additional amount. 
A. 
The article approving the additional amount must conform 
to 
the 
reg;uirements 
of 
section 
15690. 
subsection 
3. 
paragraph B. 
Notwithstanding section 1304, 
subsection 6. 
section 
1701. 
subsection 
7. 
Title 
30-A. 
section 
2528. 
subsection 5. 
or 
any other provision of 
law. 
municipal 
charter 
provision or 
ordinance. 
voter 
approval 
of 
the 
article, whether in town meeting. district meeting or other 
voting process established by law. 
municipal charter or 
ordinance. including. but not limited to. any vote on the 
article initiated by voter petition. must be by referendum 
or written ballot. 
B. 
In a municipality where the responsibility for final 
adoption of the school budget is vested by the municipal 
charter in a council. this paragraph applies. except that 
the petition and referendum provisions apply only if the 
municipal charter does not otherwise provide for or prohibit 
a 
petition and 
referendum process 
with 
respect 
to 
the 
matters described in this paragraph. 
(1) 
A majority of the entire membership of the school 
board or committee must approve the additional amount 
in a regular budget meeting. 
(2) 
An article approving the additional amount must 
conform 
to 
the 
reg;uirements 
of 
section 
15690. 
subsection 3, paragraph B and be approved by a majority 
of the entire membership of the council in a vote taken 
in accordance with section 15690, subsection 5 or, if 
the council votes not to approve the article. by a 
majority 
of 
voters 
voting 
in 
a 
referendum 
called 
pursuant to subparagraph (4). 
(3) 
If an article is approved by the council pursuant 
to subparagraph (2). 
the voters may petition for 
a 
referendum vote on the Same article in accordance with 
subparagraph (4). 
If a petition is filed in accordance 
with subparagraph (4), 
the vote of the council is 
suspended pending the outcome of the referendum vote. 
Upon approval of the article by a majority of the 
voters voting in that referendum. 
the article takes 
effect. 
If the article is not approved by a majority 
of the voters voting in that referendum. the article 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
does not take effect. 
Subseguent to the vote, 
the 
school 
committee 
or 
board 
may 
again 
propose 
an 
additional amount. subject to the reguirements of this 
section. 
(4) 
If a written petition, signed by at least 10'l-o of 
the number of voters voting in the last gubernatorial 
election in the municipality, reguesting a vote on the 
additional 
amount 
is 
submitted 
to 
the 
municipal 
officers within 30 days of the council's vote pursuant 
to 
subparagraph 
(2), 
the 
article voted 
on 
by 
the 
council must be submitted to the legal voters in the 
next regular election or a special election called for 
the purpose, 
The election must be called, advertised 
and 
conducted 
according 
to 
the 
law 
relating 
to 
municipal 
elections, 
except 
that 
the 
registrar 
of 
voters is not reguired to prepare or the clerk to post 
a new list of voters. 
For the purpose of registration 
of voters, the registrar of voters must be in session 
the secular day preceding the election. 
The voters 
shall indicate by a cross or check mark placed against 
the word "Yes" or "No" their opinion on the article. 
The results must be declared by the municipal officers 
and entered upon the municipal records. 
Sec. D·36. 20·A MRSA §15672, as amended by PL 2003, c. 712, 
§12, is further amended to read: 
§I5672. Definitions 
As 
used in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Allocation year. 
"Allocation year" means the year that 
subsidy is distributed to school administrative units. 
I-A. 
Adjusted 
total 
cost of 
components 
of 
essential 
programs and services. 
"Adjusted total cost of the components of 
essential programs and services" means the total cost of the 
components of essential programs and services adjusted to reflect 
the application of the transition targets to the base total 
component as specified in section 15671, subsection 7, paragraph 
fu 
I-B. 
Base year. 
"Base year" means the 2nd year prior to 
the allocation year. 
I-C. 
Bus purchase costs. 
"Bus purchase costs" includes 
expenditures for bus purchases approved by the commissioner and 
made during the year prior to the allocation year. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
2. 
Clerical 
staff. 
equivalent 
public 
school 
department's database. 
"Clerical 
staff" 
means 
full-time 
secretaries, 
as 
documented 
in 
the 
A. 
Debt service costs. 
"Debt service costs," for subsidy 
purposes, includes: 
A. 
Principal and interest costs for approved major capital 
projects in the allocation year, including the initial local 
share of school construction projects that received VQter 
approval for all or part of their funding in referendum in 
fiscal year 1984-85, but excluding payments made with funds 
frQm state and local government accounts established under 
the 
federal 
Internal 
Revenue 
Code 
and 
regulations 
for 
disPQsition Qf excess, unneeded prQceeds of bQnds issued for 
a schoQl project: 
B. 
Lease 
costs 
for 
school 
buildings 
when 
the 
leases, 
including leases under which the schQQl administrative unit 
may apply the lease payments tQ the purchase of portable, 
temporary classroom space beginning January L 
1988, have 
been approved by the commissioner for the year prior to the 
allQcation year. 
Beginning July 1, 1998 lease costs include 
costs fQr leasing: 
(1) 
Administrative 
space. 
A school 
administrative 
unit may lease administrative space with state support 
until 
July 
1, 
2003. 
A 
school 
administrative 
unit 
engaged 
in 
a 
lease purchase 
agreement 
for 
administrative 
space 
is eligible 
for 
state 
support 
until July 1, 2008: 
(2) 
Temporary interim nonadministrative space. 
(a) 
A 
school 
administrative 
unit 
with 
state-approved 
need 
for 
nonadministrative 
space 
may 
lease 
temporary 
interim 
space, 
with state 
support, 
for 
a 
maximum of 
years. 
A school 
administrative unit may appeal to the state board 
if this limitation presents an undue burden. 
When 
making a determination on a school administrative 
unit's request for relief based on undue burden, 
the state board may consider, but are not limited 
to considering, the following: 
(i) 
Fiscal capacity; 
(ii) 
Enrollment demographics; and 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
( iii) 
Unforeseen 
circumstances 
not within 
the 
control 
of 
the 
appealing 
school 
administrative unit. 
The state board's decision is final. 
(b) 
A school administrative unit engaged in a 
lease-purchase 
agreement 
for 
temporary 
interim 
nonadministrative 
space 
is 
eligible 
for 
state 
support for a maximum of 10 years: and 
(3) 
Permanent 
small 
nonadministrative 
space 
that 
replaces or is converted from existing approved leased 
portable space. 
The existing approved leased portable 
space will be eligible for state support until July 1, 
2003. Once an existing leased portable space has been 
converted 
into 
a 
permanent 
nonadministrative 
space 
through 
an 
approved 
lease-purchase 
agreement, 
that 
space is eligible for state support for a maximum of 10 
years. 
The department shall adopt rules necessary to implement this 
paragraph. 
Rules adopted by the department to implement 
this paragraph are major substantive rules pursuant to Title 
5, chapter 375, subchapter 2-A: 
C. 
The portion of the tuition costs applicable to the 
insured value 
factor 
for 
the 
base 
year 
computed 
under 
section 5806: and 
D. 
The 
cost of 
construction or 
purchase 
of portable, 
temporary classroom space as approved by the commissioner 
beginning 
January 
1, 
1988. 
For 
the 
purposes 
of 
this 
section, 
"portable, 
temporary 
classroom 
space" 
means 
a 
project 
consisting 
of 
one 
or 
more 
mobile 
or 
modular 
buildings that are at least partially constructed off site 
and are designed to be moved to other sites with a minimum 
of 
disassembly 
and 
reassembly. 
"Portable, 
temporary 
classroom space" includes, but is not limited to, space for 
regular 
classrooms, 
small 
group 
instruction, 
libraries, 
clinics 
and 
guidance 
and 
administrative 
office 
space, 
including 
principal 
and 
superintendent 
offices. 
The 
department shall adopt rules for approving the purchase, 
construction 
or 
lease-purchase 
of 
portable, 
temporary 
classroom space and for determining the amount includable 
for 
subsidy purposes. 
Lease-purchase 
agreements 
may 
not 
exceed a term of 10 years. 
Approved costs are those for 
the year prior to the allocation year. 
The department shall 
adopt rules necessary to implement this paragraph. 
Rules 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
adopted by the department to implement this paragraph are 
major substantive rules pursuant to Title 5, chapter 375, 
subchapter 2-A. 
3. 
Economically 
disadvantaged 
students. 
"Economically 
disadvantaged students" means students who are included in the 
department's count of students who 
are eligible for 
free or 
reduced-price meals or free milk or both. 
4. 
Education technician. 
"Education technician" means 
a 
full-time equivalent public teacher aide or education technician 
I, associate teacher or education technician II or assistant 
teacher or education technician III but not a special education 
technician I, 
II or III, 
as 
documented in the department's 
database. 
5. 
Elementary 
free 
or 
reduced-price 
meals 
percentage. 
"Elementary free or reduced-price meals percentage" means the 
percentage, 
as 
determined by the commissioner, 
that reflects 
either: 
A. 
The actual percentage of elementary students in a school 
administrative unit who 
are eligible to receive free or 
reduced-price meals or free milk or both; or 
B. 
The commissioner's estimated percentage of elementary 
students in a school administrative unit who are eligible to 
receive free or reduced-price meals or free milk or both. 
6. 
Elementary 
grades. 
"Elementary 
grades" 
means 
kindergarten to grade 8 and includes children enrolled in early 
kindergarten programs 
and 
4-year-old children enrolled in 
a 
2-year childhood education program prior to grade one. 
7. 
Elementary school level. 
"Elementary 
school 
level" 
means the grades from kindergarten to grade 5 and includes early 
kindergarten programs 
and 
2-year childhood education programs 
enrolling 4-year-old children prior to grade one. 
7-A. 
EPS per-pupil rate. 
"EPS per-pupil rate" means the 
rate calculated under section 15676 or l5676-A, as applicable. 
8. 
Essential programs and services. 
"Essential programs 
and 
services" 
means 
those 
educational 
resources 
that 
are 
identified in this chapter that enable all students to meet the 
standards in the 8 content standard subject areas of the system 
of learning results established in chapter 222. 
9. 
Essential programs and services transition percentage. 
"Essential programs and services transition percentage" means the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
~H~±-~~~~~~-~e~-~~-~~~-~~e~~ams-~~~~-~e~ 
that-~~~~~~-~--~a&~-wi±±-~-~-ey-a-~~~~&~~~~~&-e~ 
ey--a--te~~iteEl.--1o-aa-1--eeHt~ieHtieH percentage of the base total 
calculated pursuant to section 15671. subsection 7. paragraph A. 
9-A. 
Gifted 
and 
talented costs. 
"Gifted and talented 
costs" 
means 
the 
cost of 
programs 
for gifted and 
talented 
students that have been approved by the commissioner. 
10. 
Grade 9 to 12 portion. 
"Grade 9 to 12 portion" means 
those pupils in the secondary grades or high school level. 
11. 
Guidance 
staff. 
"Guidance 
staff" 
means 
full-time 
equivalent public guidance counselors, directors of guidance or 
school social workers, as documented in the department's database. 
12. 
Health 
staff. 
equivalent 
public 
school 
department's database. 
"Health 
nurses, 
staff" 
means 
as 
documented 
full-time 
in 
the 
13. 
High school level. "High school level" means grade 9 to 
grade 12. 
13-A. 
Institutional 
resident. 
"Institutional 
resident" 
means a person between 5 years of age and 20 years of age who is 
attending a public school of the school administrative unit and 
who is committed or otherwise legally admitted to and residing at 
a state-operated institution. 
"Institutional resident" does not 
include students attending private facilities. regardless of the 
means of placement. 
~4T--~-vei~~T-~q~-wei~ht~-~-a-~1~-eetweeH 
BeFe-~-eHe-~~--~&-~~-~-aQ~~~~-~-m~Biei~a±4~y~6-~~-~-e~ 
*gea.-~~~~~~-4Be9me-~~-~a&-~~~~ewiQ~~~-heHsehe*Q 
iHe9meT--~~-~-wei~h~-~~~~-p~epe~~y-~~~-~-QeiiHeQ 
iH-sHeseetieB-a4T-mHst-~e~a±-eHeT 
15. 
Kindergarten to grade 8 portion. "Kindergarten to grade 
portion" means those pupils in the elementary grades or a 
combination of the elementary school level and middle school 
level. 
16. 
Kindergarten to grade 
student. 
"Kindergarten to 
grade 
student" 
means 
a 
student 
in 
any 
grade 
from 
prekindergarten to grade 2 who is at least -..§-
i 
years old on 
October 15th of the school year. 
17. 
Librarian. 
public 
librarian or 
department's database. 
"Librarian" means 
media specialist, 
a full-time equivalent 
as 
documented 
in the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
18. 
Limited English proficiency student. 
"Limited English 
proficiency student" means a student who was not born in the 
United States or whose native language is a language other than 
English and who satisfies the definition of a limited English 
proficient student under the federal No Child Left Behind Act of 
2001, 20 United States Code, Chapter 70. 
18-A. 
Major capital costs. 
"Major capital costs" means 
costs relating to school construction projects, as defined in 
section 15901. 
19. 
Media assistant. 
"Media assistant" means a full-time 
eguivalent 
public 
librarian 
aide 
or 
library 
technician 
I, 
librarian 
assistant 
or 
library 
technician 
II 
or 
librarian 
associate 
or 
library 
technician III, 
as 
documented 
in 
the 
department's database. 
20. 
Middle school level. 
"Middle school level" means grade 
to grade 8. 
20-A. 
Minor capital costs. 
"Minor capital costs" means 
costs 
relating to plant maintenance, 
minor 
remodeling, 
site 
development or the purchase of land not in conjunction with a 
construction project. 
A. 
"Minor capital costs" does not include construction of 
new buildings or the purchase of land in conjunction with a 
school construction project. 
B. 
Expenditures to repay funds borrowed for minor capital 
expenditures must be considered minor capital costs in the 
year in which these funds are repaid. 
C. 
Purchase of land made in accordance with this subsection 
must be approved: 
(1) 
By 
the 
legislative 
body 
of 
the 
school 
administrative unit; and 
(2) 
By the commissioner, under rules adopted for this 
purpose. 
21. 
Municipality. 
"Municipality" means 
a 
city, 
town or 
organized plantation. 
21-A. 
Other subsidizable costs. 
"Other subsidizable costs" 
means those costs identified in section 15681-A. 
These costs are 
part of the total operating allocation under section 15683. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
2l-B. 
Portable. 
temporary 
classroom 
space. 
"Portable, 
temporary classroom space" means one or more mobile or modular 
buildings that are at least partially constructed off site and 
that are designed to be moved to other sites with a minimum of 
disassembly and reassembly. 
0101 y-- ~l- - 4plaEaBt:ee ... --'!.pe.!C-P-Q-p-j,.l- -~-ant:-e&!!--me-aas- -1:ae 
1:91:al--~-~~--~~~---&&&&--4~--~--ava4~ae~e--~~---eaea 
sR9s4aiBa9le-~R~il-~e~~eseB1:iB~-1:ae-~9ll9wiB~-e9S1:-e9m~eBeB1:s* 
ET--~~r~-a£4--geBe~j,.1:-~~-fe~-~&h&r-~~~~~~-seaee± 
±eve±-s1:aggf 
22-A. 
Predicted per-pupil transportation costs.. 
"Predicted 
~fU-~upi1 
t['ai1!i~ortation 
costs" 
means 
the 
predicted 
transportati9n cg$ts for a Acbggl ",M1in;i.strati'le lolnit baud on 
the number of resident pupils, the number of miles of Class 1 to 
Class 
roads in the schgol administrative unit and approved 
adjustments. 
Approved adjustments include a per mile rate equal 
to the state average gross transportation operating costs per 
mile driven for transportation associated with out-of-district 
special educatign programs, 
up to 
round trips per day for 
vgcational edlolcatign programs« 
and adjustments fgr expenditures 
for 
ferry 
services 
within 
a 
sch091 
administrative 
unit. 
transportation of homeless children in accordance with section 
5205 and transportation costs of island school administrative 
units. 
23. 
Property fisca1 capacity. 
"Property fiscal capacity" 
means the certified state valuation am9RB1: for the year prior to 
the most recently certified state valuation. 
~4T---PEepeFt:y--wei~At: ... --~PEe~E~y--~~2~-~--a--¥a±~e 
ge1:weeB-~~-a£e-~Be-~~--is-~-~e--aG}~&&-~-mRBiei~ali1:y~s 
~a1:i9--~--~~---p-e!C-p-Q-p-j,.l---p~9~e~1:y--~4~~a~--~~~--~--1:ae 
s1:a1:ewiQe-~~~~-~~~~-~j,.&eal--€apa€4~y~-~~-~-wei~a1:T 
as-ee~4£ee-~~~~-l-4r-~lRs-~he-~~~~~~~~&&-1:91:a± 
eBeT 
25. 
School administrative staff. 
"School administrative 
staff" means full-time equivalent public school principals and 
assistant principalS, as documented in the department's database. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
26. 
School administrative unit's local contribution to EPS 
per-pupil rate. "School administrative unit 1 s local contribution 
to the 
~eF-~'*Fj,.],.-~~a~aR~ee EPS per-pupil rate" means the funds 
that a school administrative unit provides for each subsidizable 
pupil who resides in that unit. 
27. 
School administrative unit's state contribution to EPS 
per-pupil rate. "School administrative unit 1 s state contribution 
to the 
~eF-F'*Fj,.],.-~~a~ali~ee EPS per-pupil rate" means the funds 
that the State provides to a school administrative unit for each 
subsidizable pupil who resides in that unit. 
28. 
School level. 
"School level" means elementary level, 
middle school level and high school level. 
29. 
School level teaching staff. 
"School level teaching 
staff" 
means 
full-time 
equivalent public 
classroom 
teachers, 
itinerant classroom teachers and special teachers of reading or 
literacy specialists excluding special education teachers 
and 
vocational education teachers, as documented in the department 1 s 
database. 
30. 
Secondary grades. 
"Secondary grades" means grade 9 to 
grade 12. 
30-A. 
Special education costs. 
"Special education costs" 
for subsidy purposes includes: 
A. 
The salary and benefit costs of certified professionals, 
assistants and aides or persons contracted to perform a 
special education service: 
B. 
The costs of tuition and board to other schools for 
programs that have been approved by the commissioner and not 
paid directly by the State. 
Medical costs are not allowable 
as part of a tuition charge; 
C. 
The following preschool handicapped services: 
(1) 
The 
salary 
and 
benefit 
costs 
of 
certified 
professionals, 
assistants 
and 
aides 
or 
persons 
contracted to perform preschool handicapped services 
that have been approved by the commissioner: and 
(2) 
The cost of tuition to other schools for programs 
that have been approved by the commissioner; and 
D. 
Special 
education 
costs 
that 
are 
the 
costs 
of 
educational 
services 
provided 
to 
students 
who 
are 
temporarily 
unable 
to 
participate 
in 
regular 
school 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
programs. 
Students 
who 
may 
be 
included 
are 
pregnant 
students, hospitalized students or those confined to their 
homes for illness or injury, students involved in substance 
abuse programs within hospital settings or in residential 
rehabilitation facilities 
licensed by 
the 
Department 
of 
Health and Human Services, Office of Alcoholism and Drug 
Abuse Prevention for less than 6 weeks duration or students 
suffering 
from 
other 
temporary 
conditions 
that prohibit 
their attendance at school. 
Students 
served under 
this 
paragraph may not be counted as exceptional students for 
federal reporting purposes. 
30-B. 
State-operated 
institution. 
"State-operated 
institution" means any residential facility or institution that 
is operated by tbe Department of Health and Human Services or a 
school operated by the Department Of Education. 
31. 
State share percentage. 
"State share percentage" means 
the percentage of the 
SQffi-~~-~~-~~l~~~-~~-~ha~--~s 
pFav~aea-~-~-&~&&-appFepF~a~~aB+ state contribution determined 
under section 15688, subsection 3, paragraph B divided by the 
total cost determined in section 15688, subsection 1. 
AT---Q~e~a~4B~--€~~~--~~~--~~~-~r-~&--ae&e~i&ea--~B 
see~~aB-19986t 
8T--P~e~~am-£~~~-~~~4~-~~~~-~&-see~ieB-1geg8T 
s1:i&See~~eB-6t 
GT---Al*aea~~eBs--'aF--aeB~--seFv~ee--ees~sT--as--ae'~Bea--~B 
see~~aB-19996T-s1:iBsee~~eB-gt-aBa 
PT--~~~~4~~~--all-aaj1:iB~meB~B-~~~&G&~~~-ees~s 
a1:i~haF~Bea-p1:iFS1:iaB~-~a-see~~9Bs-lee16-aBa-19916T 
31-A. 
State subsidy. "State subsidy" means the total of the 
state contribution determined under 
section 15688, 
subsection 
A, 
paragraph B and any applicable adjustment under section 
15689. 
B. 
Subsidizable costs. 
"Subsidizable costs" includes 
the costs described in paragraphs A to C and used to calculate 
the total allocation amount: 
A. 
The total operating allocation under section 15683; 
B. 
Debt service cost; and 
C. 
Adjustments and miscellaneous costs under sections 15689 
and l5689-A including special education tuition and board, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
excluding medical costs. 
For purposes of this paragraph. 
"special education tuition and board" means: 
32. 
(1) 
Tuition and board for pupils placed directly by 
the State in accordance with rules adopted or amended 
by the commissioner: and 
( 2) 
Special education tuition and other tuition for 
institutional residents of state-operated institutions 
attending programs in school administrative units or 
private schools in accordance with rules adopted or 
amended by the commissioner. 
Subsidizable pupils. 
"Subsidizable pupils" means all 
school level pupils who reside in a school administrative unit 
and who are educated at public expense at a public school or at a 
private school approved for tuition purposes. 
32-A. 
Total allocation. "Total allocation" means the total 
of the operating allocation as described in section 15683 and the 
debt service allocation as described in section l5683-A. 
Nonsubsidizable costs are not considered in the calculation of 
the 
total 
allocation. 
"Nonsubsidizable 
costs" 
includes 
the 
following: 
A. 
Community service costs: 
B. 
Major capital costs: 
C. 
Expenditures from all federal revenue sources, except 
for amounts received under United States Public Law 81-874: 
D. 
Transportation costs not associated with transporting 
students from home to school and back home each day: and 
E. 
Costs payable to the Maine State Retirement System under 
Title 5, section 17154, subsections 10 and 11. 
32-B. 
Total cost of components of essential programs and 
services. 
"Total cost of the components of essential programs 
and services" means the total of the following components: 
A. 
The base total determined pursuant to section 15683. 
subsection I: 
B. 
Other subsidizable costs identified in section l568l-A; 
C. 
Debt service costs; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
D. 
Adjustments determined pursuant to section 15689; and 
E. 
Miscellaneous costs appropriated pursuant to section 
15689-A. 
32-C. 
Transportation 
operating 
costs. 
"Transportation 
operating costs" means all costs incurred in the transportation 
of pupils in kindergarten to grade 12. including lease costs for 
bus garage and maintenance facilities and lease-purchase costs 
that the school administrative unit may apply to the purchase of 
bus 
garage 
and maintenance 
facilities, 
when 
the 
leases 
and 
lease-purchase agreements have been approved by the commissioner, 
but excluding the costs of bus purchases and excluding all costs 
not associated with transporting students from home to school and 
back home each day. 
The amount includable for determining the 
subsidy for a school administrative unit for lease-purchase of 
bus garage and maintenance facilities may not exceed the amount 
for the lease of a comparable facility. 
D. 
Vocational education costs. 
"Vocational 
education 
costs" for subsidy purposes means all costs incurred by the 
vocational regions, centeI.;s or satellites in provid~ng approved 
secondary 
school 
vocational 
education 
programs. 
excluding 
transportation, capital costs and debt service. 
32-E. 
Year. "Year" means a fiscal year starting July 1st 
and ending June 30th of the succeeding year. 
33. 
Year of funding. 
"Year of funding" means the 
year 
during 
which 
state 
subsidies 
are 
disbursed 
to 
administrative units, 
except 
as 
specified in section 
subsection 1. 
fiscal 
school 
15005, 
Sec. D-37. 20-A MRSA §15673, as repealed and replaced by PL 
2003, c. 712, §13. is repealed. 
Sec. D-38. 20-A MRSA §15675, sub-§l, as enacted by PL 2003, c. 
504, Pt. A, §6, is amended to read: 
1. 
Limited English proficiency students. 
weights 
for 
school administrative units with 
proficiency students are as follows: 
The addi tional 
limited English 
A. 
For 
a 
school 
administrative unit with 
or 
fewer 
limited English proficiency students, the unit receives an 
additional weight of .50 per student; 
B. 
For a school administrative unit with more than 15 and 
fewer than 251 limited English proficiency students, the 
unit receives an additional weight of .30 per student; and 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "P." to H.P. 6, L.D. 1 
C. For a school administrative unit with 251 or more limited 
English 
proficiency 
students, 
the 
unit 
receives 
an 
additional weight of .60 per student. 
Eligibility for state ::unds under this subsection is limited to 
school 
administrative 
units 
that 
are 
providing 
services 
to 
limited English proficient students through programs approved by 
the department. 
Sec. D-39. 20-A ME-SA §15676, as enacted by PL 2003, c. 504, 
Pt. A, §6, is amended to read: 
§15676. 
EPS per-pupil rate 
For each school administrative unit, the commissioner shall 
calculate the unit' s 
i?eF-p\,lpj,.l--~~a£aBt;ee EPS per-pupil rate for 
each year as the sum of: 
1. Teachinq staf= costs. 
The salary and benefit costs for 
school level teaching staff that are necessary to carry out this 
Act, calculated in accordance with section 15678. 
~gjusted by the 
regional adjustment under section 15682 and reguceg by the amount 
of fungs receiyeg by the school administrative unit during the 
most recent fiscal year under Title 1 of the federal Elementary 
and Secondary Act of 1955. 20 United States Coger Section 6301 et 
~; 
2. Other staff costs. 
The salary and benefit costs for 
school-level staff who are not teachers, but including substitute 
teachers, 
that are necessary to carry out this Act, calculated 
in 
accordance 
with 
section 
15679. 
adjusted by 
the 
regional 
adjustment under section 15682 and reguced by the amount of funds 
received by the school administrative unit during the most recent 
fiscal year unger Title 1 of the fegeral Elementary ang Secongary 
Act of 1965. 20 United States Coger Sect"ion 6301 et seg.; and 
3. Additional costs. 
The per-pupil amounts not related to 
staffing, calculated in accordance with section 15680. 
The EPS per-pupil rate is calculated on the basis of which 
schools students attend. 
For school administrative units that do 
not 
operate 
their 
own 
schools. 
the 
EPS 
per-pupil 
rate 
is 
calculated under section 15676-A. 
Sec. D-40. 20-A MRSA §15676-A is enacted to read: 
§15676-A. 
EPS per-pup~l rate for units that do not operate 
schools 
COMMlrTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
1. 
Definitions. 
For 
purposes 
of 
this 
section, 
the 
following terms have the following meanings. 
A. 
"Receiving unit" means the school administrative unit to 
which students are sent by the sending unit. 
B. 
"Receiving un; t 
cost" means the amount arrived at by 
multiplying the receiving unit's EPS rate by the number of 
students sent to that unit by the sending unit. 
C. 
"Sending unit" 
means 
the 
school 
administrative unit 
sending students to other school administrative units. 
2. 
C511cylat,ion 
of 
EP5 
~r-:eu:eil 
rat,ft. 
Fgr 
§!::hool 
ladmj,ni~tr~tj,~~ 
ynj,t§ 
;;,ha,t 
Qg 
nQt 
QP~ra,t~ 
!::~rta,j,n 
tYPfls 
gf 
schools. 
tb~ 
s;;Qmmh~iQn~[ 
shall 
l::~J.S;;l.lliil.t~ 
tb~t 
l.lnit';ii 
J::fS 
PiU:-Pl.lP.u u,t~ ~Q[ ~Ia!::h y~~[ iil./i 
~QllQwl2 • 
A. 
For ynits that do not operlate elementary graQe §chools, 
the EPS per-pupil rate for elementary graQes is !::alcylated 
by multiplying the nymber Qf student§ §flnt by the §enQing 
unit to an elflmentary grade receiving ynit multiplied by the 
re!::eiving ynit' s 
EPS per-pupil rate for elementary grades 
anQ thfl resylt divided by the number of §tYQent/i §ent by the 
sflnding ynit to that elemflntlary grade 
re!::fli~ing uniL 
If 
the sending ynit sends students to more than gne fllflmentary 
gradfl receiving unit, then the fllementlary graQe re!::eiving 
unit !::gst fQr each'stuQent sent by the sending unit is added 
anQ the re§ult divided by the totlal number of student§ sent 
to elementary grade rflceiving units by thfl §ending unit. 
The result is the average elementary grade EPS per-pupil 
rate fQr the sending unit. 
Thfl 
EPS per-pupil ra,te fgr priva,te §chool§ approved 
fQr 
tuitiQn pyrpQ§es under chlapter 117 is the statewide average 
EPS per-pupil rate for elementary grlaQes. 
The elementary 
attenQing stuQent count i§ thfl mQ§t rfl!::ent October l§t count 
prior to the allocatiQn year. 
B. 
For ynits that QO not Qperate secondary grade schgols, 
the EPS per-pypil rate for secondlary grades is calculated by 
multiplying the number Qf students §ent by the senQing unit 
to 
a 
se!::ondary 
grade 
recfl1v1ng 
unit myltiplieQ by 
the 
receiving unit's EPS per-pupil ra,tfl for secQndary graQfls and 
thfl resylt divided by the number of stuQflnts sent by the 
sending unit to that secondary grade receiving unit. 
If the 
sending unit sends stydents tg mgre tha,n one secQnda,ry gra,de 
receiving unit, then the secQndary graQe receiving unit cost 
for ea!::h student sent by the sending unit is added and the 
resylt divided bv the tgtal number of §tudents sent to 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
secondary grade receiving units by the sending unit. 
The 
result is the average secondary grade EPS per-pupil rate for 
the sending unit. 
The 
EPS per-pupil rate for private schools approved for 
tuition purposes under chapter 117 is the statewide average 
EPS 
per-pupil rate 
for 
secondary grades. 
The 
secondary 
attending student count is the most recent October 1st count 
prior to the allocation year. 
Sec. D-41. 20-A MRSA §15678, sub-§5, 1[B, as enacted by PL 
2003, c. 504, Pt. A, §6, is amended to read: 
B. 
The 
amount, 
as 
determined by 
the 
commissioner, 
equals 
the 
statewide 
percentage 
of 
salary 
costs 
represents the statewide average benefit costs. 
that 
that 
Sec. D-42. 20-A MRSA c. 606-C, headnote, as enacted by IB 2003, 
c. 2, §1, is repealed. 
Sec. D-43. 20·A MRSA §15681, as enacted by IB 2003, c. 2, 
§1, is repealed. 
Sec. D·44. 20·A MRSA §15681·A is enacted to read: 
§15681-A. 
Other Subsid~zable costs 
The following are other subsidizable costs: 
1. 
Bus purchases. 
Bus purchase costs; 
2. 
Special 
edu~~.tion costs. 
Beginning 
in fiscal 
year 
2005-06, 
a 
school administrative unit receives 
an additional 
weight of at hast 1.20 but not greeter than 1.40 for each 
special education student identified on tae annual December 1st 
child 
count 
as 
regu; red 
by 
the 
federal 
Individuals 
with 
Disabilities Education Act for the most recent year. 
up to a 
maximum of 
15% 
of 
the 
school 
administrative unit's resident 
pupils as determined under section 15674, subsection 1, paragraph 
C, 
subparagraph (1). 
For those school administrative units in 
which the annual December 1st child count for the most recent 
year 
is 
less 
than 
15% 
of 
the 
school 
administrative unit's 
resident pupils as determined under section 15674, subsection 1, 
paragraph C, subparagraph (1), the special education child count 
percentage may not increase more than 0.5% in any given year, up 
to 
a 
maximum of 1.0
/0 
in any given 3-year period. 
For each 
special 
education 
student 
above 
the 
15% 
maximum, 
the 
unit 
receives an additional weight of .38. In addition, each school 
administrative unit must receive additional funds: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "Au to H.P. 6, L.D. 1 
A. 
For 
lower 
s~aff-student ratios and expenditures 
for 
related services for school administrative units with fewer 
than 20 special education students identified on the annual 
December 
1st 
child 
count 
as 
required 
by 
the 
federal 
Individuals with Disabilities Education Act for the most 
recent year: 
B. 
For high-cost in-district special education placements. 
Additional 
funds 
must 
be 
allocated 
for 
each 
student 
estimated to cost 3 times the statewide special education 
EPS per-pupil rate. 
The additional funds for each student 
must equal the amount by which that student's estimated 
costs exceed 3 times the statewide special education EPS 
per-pupil rate: 
C. 
For 
high-cost 
out-of-district 
special 
education 
placements. 
Additional funds must be allocated for each 
stud§nt estimated to cost 4 
times the statewide special 
education EPS per-pupil rate. 
The additional funds for each 
student must 
egual 
the 
amount 
by 
which 
that student's 
estimated 
costs 
exceed 
times 
the 
statewide 
special 
education EPS per-pupil rate: and 
D. 
To 
ensure the school administrative unit meets 
the 
federal 
maintenance 
of effort 
requirement 
for 
receiving 
federal Indiyiduals with Disabilities Education Act funds. 
The 
commissioner 
shall 
develop 
an 
appeals 
procedure 
for 
calculated special education costs 
for 
school 
administrative 
units: 
3. 
Transportation costs. 
For fiscal year 
2005-06, 
the 
commissioner, using information provided by a statewide education 
policy 
research 
institute, 
shall 
establish 
a 
per-pupil 
transportation cost for each school administrative unit based on 
an analysis of the most recent year's reported transportation 
expenditures and a predicted per-pupil transportation cost based 
on the number of resident pupils, the number of miles of Class 1 
to Class 
roads in the school administrative unit and any 
approved adjustments. 
In fiscal year 
2005-06 
the established 
per-pupil transportation cost for each school administrative unit 
is the most recent year's reported transportation expenditures or 
predicted per-pupil transportation cost. plus 10°-0, whichever is 
lower. Beginning in fiscal year 2006-07, and for each subsequent 
fiscal year, the per-pupil transportation costs for each school 
administrative unit are its established costs for the most recent 
year adjusted by the Consumer Price Index or other comparable 
index. For fiscal years 2005-06 and 2006-07« in no case may the 
per-pupil transportation costs for a school administrative unit 
be less than 75°-& of the established costs for the most recent 
COMMI1TEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
fiscal year. 
Every 3 years, the commissioner, using information 
provided by 
a 
statew~de education policy research institute, 
shall examine and may adjust reported transportation expenditures 
and 
predicted 
transportation 
costs. 
The 
commissioner 
shall 
develop 
an 
appeals 
procedure 
for 
established 
per-pupil 
transportation costs for school administrative units; 
4. 
Vocational edv.cation costs. 
Vocational education costs 
in the base year adjusted to the year prior to the allocation 
year; and 
5. 
Gifted 
and 
talented 
education 
costs. 
Gifted 
and 
talented costs in the base year adjusted to the year prior to the 
allocation year. 
Sec. D-45. 20-A MRSA §15682, as enacted by IB 2003, c. 2, 
§l, is repealed. 
Sec. D-46. 20-A MR3A §15682, as enacted by PL 2003, c. 504, 
Pt. A, §6, is amended to read: 
§15682. 
Regional adjusbment 
The commissioner shall make 
a regional adjustment in the 
total operating allocation for each school administrative unit 
determined pursuant to section 15683. 
The regional adjustment 
must be based on the regional differences in teacher salary costs 
within 
labor 
market 
areas 
in the State, 
as 
computed 
by 
a 
statewide 
education 
policy 
research 
institute, 
and 
must 
be 
applied only to appropriate teacher salary and benefits costs as 
calculated under section 15678 and salary and benefit costs of 
other sChool-level staff who are not teachers as calculated under 
section 15679. 
Beginning in fiscal year 2006-07, and at least 
every 2 years thereafter, 
the commissioner, 
using information 
provided by 
a 
statewide education policy research institute, 
shall review the regional adjustment amounts under this section 
and shall submit any recommended changes to the state board for 
approval. 
Sec. D-47. 20-A MRSA §15683, as amended by PL 2003, c. 712, 
§14, is further amended to read: 
§15683. 
Total operati~q allocation 
For 
each 
school 
administrative unit, 
that unit's total 
operating allocation is the base total set forth in subsection 1 
as adjusted in accordance with subsection 2 and including the 
total amount 
feF--s-ub-&e-<J.t-i~-~ of other subsidizable costs as 
described in section l568l-A. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
1. 
Base total. 
J?he base total of a school administrative 
unit's total operating allocation is the sum of: 
A. 
The 
product 
of 
the 
school 
administrative 
unit's 
kindergarten to grade 8 pel'-IH:lp4..J.--q.1i-aFaa1:ee EPS per-pupil 
~ 
multiplied by the total of the kindergarten to grade 8 
portions of the following pupil counts: 
(1) 
The 
pupil 
count 
set 
forth 
in 
section 
15674, 
subsection 1, paragraph C; 
(2) 
The 
additional 
weight 
for 
limited 
English 
proficiency students 
calculated pursuant to 
section 
15675, subsection 1; and 
(3) 
The 
additional 
disadvantaged students 
15575, subsection 2; 
weight 
calculated 
for 
economically 
pursuant to section 
B. The product of the school administrative unit's grade 9 
to 12 
peF-p1i-pi],.-~",,-a~aRt;ee EPS per-pupil rate multiplied by 
the total of the grade 9 to 12 portion of the following 
pupil counts: 
(1) 
The 
pupil 
count 
set 
forth 
in 
section 
15674, 
subsection 1, paragraphs A, Band C; 
(2) 
The 
additional 
weight 
for 
limited 
proficiency students 
calculated pursuant 
to 
15675, subsection 1; and 
English 
section 
(3 ) 
The 
additional 
weight 
calculated 
for 
economically 
disadvantaged students 
15675, subsection 2; 
pursuant to section 
C. 
If 
the 
school 
administrative 
unit 
is 
eligible 
for 
targeted student assessment funds pursuant to section 15581, 
subsection 1, the sum of: 
(1) 
The product of the elementary school level and 
middle 
school 
level 
per-pupil 
amount 
for 
targeted 
student assessment funds calculated pursuant to section 
15681, subsection 2 multiplied by the kindergarten to 
grade 8 portion of the pupil count calculated pursuant 
to 
section 
15674, 
subsection 
1, 
paragraph 
C, 
subparagraph (1); and 
(2) 
The product of the high school 
amount for targeted student assessment 
pursuant to section 15681, subsection 
level per-pupil 
funds calculated 
multiplied by 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
the grade 9 tQ 12 portion of the pupil count calculated 
pursuant to section 15674, subsection 1, paragraph C, 
subparagraph (1); 
D. 
If the 
school 
administrative 
targeted 
technology 
resource 
funds 
15681, subsection 1, the sum of: 
unit is 
pursuant 
eligible for 
to 
section 
(1) 
The product of the elementary school level and 
middle 
school 
level 
per-pupil 
amount 
for 
targeted 
technology 
resource 
funds 
calculated 
pursuant 
to 
section 
15681, 
subsection 
multiplied 
by 
the 
kindergarten to grade 
portion of the pupil count 
calculated pursuant to section 15674, 
subsection 1, 
paragraph C, subparagraph (1); and 
(2) 
The product of the high school level per-pupil 
amount 
for 
targeted 
technology 
resource 
funds 
calculated pursuant 
of 
section 
15681, 
subsection 
multiplied by the grade 9 to 12 portion of the pupil 
count calculc.ted pursuant to section 15674, subsection 
1, paragraph C, subparagraph (1); aBa 
E. 
If the 
school 
administrative 
unit is eligible 
for 
targeted kindergarten to grade 2 funds pursuant to section 
15681, subsection 1, the product of the pe~-p~p~l-~~aEaB~ee 
EPS per-pupil rate multiplied by the additional weight for 
kindergarten 
to 
grade 
calculated pursuant 
to 
section 
15675, subsection 3~ ; and 
F. 
An 
isolated 
small 
unit 
adjustment. 
A 
school 
administrative unit is eligible for an isolated small school 
adjustment 
when 
the 
unit 
meets 
the 
size 
and 
distance 
criteria as established by the commissioner and approved by 
the state board. 
~e amount of the adjustment is the result 
of 
adjusting 
the 
necessary 
student-to-staff 
ratios 
determined in section 15679. 
subsection 2, 
the per-pupil 
amount for operation and maintenance of plant in section 
15680. subsection 1, paragraph B or other essential programs 
and services components in chapter 606-8. as recommended by 
the commissioner. 
2. 
Adjustments. 
The 
base total 
subsection 1 must be adjusted as-fellews 
appropriate 
transition percentage 
in 
15671, subsection 7, paragraph A. 
calculated pursuant 
to 
by multiplying it by the 
accordance 
with section 
AT-~~~-teta±-~~~~~~~~-te-~~~~~~-~-ffiyst 
ae-£ea~eea-By-~~~-~~~~-~-~~V&G-&y-tae-seaeel 
aamiBist~ative-~£~~-~--~~~~-I-~~-~~-~~~-EleffieBta~y 
COMMITrEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
aBa-Se€e£Qa~y-~~~~~-9~-199§7-~~~~~-S&&~&-beaeT 
SeetieB-96g±-et-6e€T-a~~iB~-the-mest-~eeeBt-~isea~-yea~T 
ET--~~-am&~a&-~~~~~~a~~--~~r&aaa&-~e-~~~-A-~-ae 
aaj~stea--&y--&h&-~~~~-~~~--~~~~a~--~e--seetieB 
±9s86T 
bT--~-ame~£~-~~~~1at~-~~£~a£~--&&-~~~-E-~--ae 
m~±tip~iea-By-~£~~~~-~~~~-&er¥iee&-t~aBsitieB 
pe~eeBta~e--Ee~--~Re--app~ep~iate--yea~--iB--aeee~aaBee--with 
seetieB-±§97±T-6~B6eetieB-7T-pa~a~~aph-AT 
Sec. D-48. 20-A M::ZSA §15683, as enacted by IB 2003, c. 2, 
§1, is repealed. 
Sec. D-49. 20-A MRS A §15683-A is enacted to read: 
§15683-A. 
Total debt z~rvice allocation 
For each school administrative unit, that unit's total debt 
service allocation is that unit's debt service costs as defined 
in section 15672, subsection 2-A. 
Sec. D-50. 20-A MRSA §15684, as enacted by PL 2003, c. 712, 
§15 and IB 2003, c. 2, §l, is repealed. 
Sec. D-51. 20-A MRSA §15685, as enacted by PL 2003, c. 504, 
Pt. A, §6 and IB 2003, c. 2, §1, is repealed. 
Sec. D-52. 20-A MRSA §15686, as amended by PL 2003, c. 712, 
§16, is further amended to read: 
§15686. 
Transition adjustment 
For each of the fiscal years described in section 15671, 
subsection 7, 
the 
commissioner 
shall· establish 
a 
transition 
adjustment calculated to minimize the adverse fiscal impact that 
may be experienced by some municipalities as a result of the 
phase-in 
of 
this 
P.ct. 
The 
transition 
adjustment 
for 
a 
municipality 
must 
be 
directly 
related 
to 
the 
phase-in 
of 
essential 
programs 
and 
services 
and 
the 
local 
cost 
share 
expectation method under section 15671-A of determining the local 
contribution to 
the 
cost of 
funding essential 
programs 
and 
services. 
The amount of this adjustment must decline with each 
successive fiscal year r 
and the adjustments must end no later 
than fiscal year 6QQ9-±Q 2008-09. 
1. 
Adjustment 
in 
fiscal 
year 
2005-06. 
A 
school 
administrative unit is eligible for a transition adjustment in 
fiscal year 2005-06 ; f the school administrative unit meets the 
following criteria. 
rage 50-LR0328(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
A. 
The 
school administrative unit's state share of the 
total allocation, 
including the 
debt 
service 
adjustment 
pursuant to secticm 
15689, subsection 2, 
and the minimum 
state share of 
;~s total allocation pursuant to section 
15689, subsection 1 is less than the fiscal year 2004-05 
state share of its total allocation, including the minimum 
state share of 
~ts total allocation pursuant to 
former 
section 
15689, 
subsection 
and 
the 
adjustment 
for 
geographic isolation pursuant to section 15612, subsection 
2. 
The state share adjustment is an amount equal to that 
difference less the losses due to reduced expenditures for 
buses, debt service, special education, gifted and talented 
education and vocational education. 
A school administrative unit that meets the criteria in paragraph 
A is eligible to receive no less than a 5% transition adjustment 
in fiscal year 2005-06 if the school administrative unit operates 
an elementary or secondary school and also has a student count of 
less than 1,000. 
A school administrative unit that meets the criteria in paragraph 
A is eligible 
to 
r~ceive no 
less 
than 
a 
2.5% 
transition 
adjustment in fiscal 'lear 2005-06 if the schoOl administrative 
unit operates an elementary or secondary school and also has a 
student count of more than 1,000. 
Sec. D·53. 20·A MRSA §15688, sub·§l, 1f1fA to C, as enacted by PL 
2003, c. 712, §17, are amended to read: 
A. 
The school administrative unit's base total 
ee6~--ef 
f~aeia~--e66eatia~--p~e~~ams--aae--se~viees--s~9ieet--te--tae 
~~aasitiea-Fe~eea~a~es calculated pursuant to section 15683, 
subsection L 
adjusted pursuant to the transition targets 
described in section 15671, subsection 7, paragraph A; 
B. 
The p~e~~affi-€e€~-~~~~~~~~-~-e&ap&e~-999 ~ 
subsidizable costs described in section 15681-A; and 
C. 
The total debt service allocation as-Rsee-ia-eaapteF-eGe 
described in sect!on 15683-A. 
Sec. D·54. 20·A MRSA §15688, sub·§2, as enacted by PL 2003, c. 
712, §17, is amended to read: 
2. 
Member municipalities in school administrative districts 
or 
community 
schoo: 
districts; 
total 
costs. 
For 
each 
municipality that is a member of a school administrative district 
or community school district, 
the commissioner shall annually 
determine 
each 
municipality's 
total 
cost 
of 
education. 
A 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
municipality's 
total 
cost 
of 
education 
is 
the 
school 
administrative district's or community school district's total 
cost of 
€QR~iR~ education multiplied by the percentage that the 
municipality's most recent calendar year average pupil count is 
to 
the 
school 
administrative district's or 
community 
school 
district's most recent calendar year average pupil count. 
Sec. D-55. 20-A MRSA §15688, sub-§3, as enacted by PL 2003, c. 
712, §17, is repealed. 
Sec. D-56. 20-A MR3A §15688, sub-§3-A is enacted to read: 
3-A. 
School adm:.::listrative unit: contribution. 
For each 
school 
administrative 
unit. 
the 
commissioner 
shall 
annually 
detex:miue the school administrat1ve uuH' s reQ;uired contriby,tion. 
the required contribut i on of each municipality that is a member 
of the unit. if the unit has more than one member, 
and the 
State's contribution to the unit's total cost of education in 
accordance with the following. 
A, 
For a school administrative unit composed of only one 
municipality. 
the 
contribution 
of 
the 
unit 
and 
the 
municipality is the same and is the lesser of: 
(1) 
The total cost described in subsection 1; and 
(2) 
The total of the full-value education mill rate 
calculated ir:. section 15671-A. subsection 2 multiplied 
by the property fiscal capacity of the municipality. 
B. 
For a school administrative district or community school 
district 
composed 
of 
more 
than 
one 
municipality, 
each 
municipality's contribution to the total cost of education 
is the lesser of: 
(I) 
The municipality's total cost as described in 
subsection 2; and 
{2} 
The total of the full value education mill rate 
calculated in section 15671-A. subsection 2 multiplied 
by the property fiscal capacity of the municipality. 
C. 
For a school administrative district or community school 
district composed of more than one municipality. the unit's 
contribution to the total cost of education is the lesser of: 
(1) 
The tota; cost as described in subsection 1; and 
(2) 
The sum of the totals calculated for each member 
municipality ~ursuant to paragraph a, subparagraph (2). 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT itA" to H.P. 6, L.D. 1 
D. 
The 
state contribution to the 
school 
administrative 
unit's 
total 
cos~ of 
education is 
the 
total 
cost 
of 
education calculated pursuant 
to 
subsection 
less 
the 
school 
administrative 
unit's 
contribution 
calculated 
pursuant to parac::aph A or C, 
as applicable. 
The state 
contribution is subject to reduction in accordance with 
section 15690, subsection 1, paragraph C. 
Sec. D-57. 20-A MR~A §15688, sub-§4, as enacted by PL 2003, c. 
712, §17, is amended to read: 
4. 
Method of cos".: sharing; exception. 
For the purpose of 
local cost sharing, the provisions of subsection --d-
3-A do not 
apply 
to 
municipalities 
that 
are 
members 
of 
a 
school 
administrative distric~ or a community school district whose cost 
sharing formula was established pursuant to private and special 
law prior to January 1, 2004. 
For each municipality that is a 
member of a school administrative district or a community school 
district whose cost sharing formula was established pursuant to 
private and special 
law prior to January 1, 
2004, 
the cost 
sharing formula estab2.ished pursuant to private and special law 
determines each municipality's local cost of education. 
Sec. D-58. 20-A MR.~A §15689, sub-§l, as enacted by PL 2003, c. 
712, §17, is repealed and the following enacted in its place: 
1. 
Minimum stat'S' allocation. 
Each school administrative 
unit must be guaranteed a 
minimum state share of its total 
allocation that is 
a~ amount 
egual 
to 
the greater of 
the 
following: 
A. 
The sum of the following calculations: 
(1) 
Multiplying 
5% 
of 
each 
school 
administrative 
unit's 
essential 
programs 
and 
services 
per-pupil 
elementary 
rate 
by 
the 
average 
number 
of 
resident 
kindergarten to grade 
pupils as 
determined under 
section 15674, subsection 1, paragraph C, subparagraph 
(1); and 
(2) 
Multipl~ing 
5% 
of 
each 
school 
administrative 
unit's 
essential 
programs 
and 
services 
per-pupil 
secondary rate by the average number of resident grade 
to grade 12 pupils as determined under section 15674, 
subsection I, paragraph C, subparagraph (1); and 
B. 
The school administrative unit's special education costs 
as 
calculated pursuant to section 1568l-A, 
subsection 
multiplied by the following transition percentages: 
COMMlrtEE AMENDMENT 
COMMITTEE AMENDMENT "An to H.P. 6, L.D. 1 
(1) 
In fisc a; year 2005-06, 84'l-o; 
( 2 ) 
In fiscc.:L year 2006-07, 90<>.0; 
( 3) 
In fisca' year 2007-08, 95'l-o; and 
(4} 
In fiscal year 2QQ8-02 ang ;;!uc~eeding years, 100°". 
These funds must be an agju;;!tment to the school administrative 
unit's state ang local allocation after the state ang local 
allocation 
has 
been 
adjusteg 
for 
debt 
service 
pursuant 
to 
subsection 2. 
Sec. D-59. 20-A MR3A §15689, sub-§3, as enacted by PL 2003, c. 
712, §17, is amended to read: 
3. 
Adjusbnent li.c,itations. 
The amounts of the adjustments 
paid 
to 
school 
adrr,j.nistrative 
units 
or 
municipalities 
;ka 
S\i9Seet::i:eR6-~--and--a pursuant to this section are limited to the 
amounts appropriated by the Legislature for these adjustments. 
Sec. D-60. 20-A MR~A §15689, sub-§§4 to 6 are enacted to read: 
4. 
Audit 
ad,jusb:l'~!lts. 
The following provi;;!ions apply to 
audit agjustments. 
A. 
If errors are revealeg by augit and by the commis;;!ioner, 
the 
school 
administrative 
unit';;! 
;;!tate 
subsigy 
mu;;!t 
be 
adjusted to include corrections. 
B. 
If audit adlustments are discovered after the funding 
level is certified by the commissioner and the state board 
on December 15th pursuant to ;;!ection 15682-C, the gepartment 
may request the necessary additional funds, if any, to pay 
for 
these 
agjustments. 
These 
amounts, 
if any, 
are 
in 
agdition to the augit adju;;!tment amount certified by the 
commissioner ang state board on the prior December 15th. 
5. 
Adjustment 
f,:,~ cost of ed,ucating eligible stud,ents in 
long-term drug treatme-nt centers. 
A school administrative unit 
that operates an egucational program approveg pursuant to chapter 
to serve eligible stugents in licenseg drug treatment centers 
must be reimbur;;!eg in the year in which CO;;!ts are incurred as 
follows. 
A. 
Reimbursements must be limited to a maximum of 12 state 
average tuition rC'.tes a year for each approved plan. 
COMMIITEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
B. 
The rate of r~imbursement per student may not exceed the 
state average tu; tion rates in effect during the year of 
placement as computed under sections 5804 and 5805. 
The 
tuition rates must be computed based on the state average 
secondary tuition rate and may be adjusted if the program is 
approved to operate beyond the l80-day school year. 
6. 
Adjustment 
fo~ uncertified personnel. 
The commissioner 
shall reduce the state share of the total allocation to a school 
administrative unit ire. the current year or following year by an 
amount 
that 
represents 
the state 
share 
of 
expenditures 
for 
salaries and benefits p~id to uncertified personnel. 
Sec. D-61. 20-A MR~A §§15689-A to 15689-F are enacted to read: 
§15689-A. 
Authorizatio~ of paJment of miscellaneous costs 
1. 
Papent of s'::ate agency client costs. 
State agency 
client costs are payabl~ pursuant to this subsection. 
As used in 
this subsection. 
"stat~ agency client" has the Same meaning as 
defined in section L 
subsection 34-A. 
A. 
The commissioner shall approve special education costs 
and supportive services. including transportation. for all 
state agency clients placed in residential placements by an 
authorized agent 0: a state agency. 
B. 
Special education costs authorized by this subsection 
for state agency clients must be paid by the department in 
the allocation year at 100% of actual costs. 
C. 
The 
commissioner 
shall 
pay 
only 
approved 
special 
education 
costs 
and 
supportive 
services. 
including 
transportation. 
authorized 
by 
this 
subsection 
for 
state 
agency clients 
and 
may 
not allocate 
for 
those 
special 
education 
costs 
and 
supportive 
services. 
including 
transportation, incurred by the school administrative unit 
for state agency clients in the base years starting July 1, 
1985. and every base year thereafter. 
D. 
Transportation costs for state agency clients, 
when 
provided 
in 
accordance 
with 
rules 
established 
by 
the 
commissioner 
under 
section 
7204. 
must 
be 
paid 
by 
the 
department in the allocation year at 100% of actual costs. 
2. 
Education of institutional residents. 
The commissioner 
may pay tuition to school administrative units or private schools 
for institutional 
resic~ents within the limits of the allocation 
made under this sectio~. 
COMMITlEE AMENDMENT 
COMMITTEE AMENDMENT ""A." 
t.o H. P. 6, L. D. 1 
3. 
Essential 
p~?~rams and services components contract. 
The commissioner may contract for the updating of the essential 
programs 
and 
service8 
component 
with 
a 
statewide 
education 
research institute. 
4. 
Learning 
~~sults 
implementation. 
assessment 
and 
accountability. 
The commissioner may expend and disburse funds 
limited to the amount appropriated by the Legislature to carry 
out the purposes of Public Law 1995, chapter 649. sections 5 and 
h 
5. 
Regionalizz:::.ion. 
consolidation 
and 
efficiency 
assistance. 
The 
commissioner 
may 
expend 
and 
disburse 
funds 
limited to the amount appropriated by the Legislature to carry 
out the purposes of promoting regionalization. consolidation and 
efficiency. 
6. 
Education 
r~search contract. 
The 
commissioner 
may 
contract for the comp~lation and analysis of education data with 
a statewide education research institute. 
7. 
Disbursement 
limitations. 
The 
funds 
.accordance 
with 
this 
section 
are 
limited 
to 
appropriated by the Leaislature for these purposes. 
disbursed 
in 
the 
amounts 
§15689-B. 
Authorization and schedules of payment of state 
subsidy: apneals 
1. 
Schedules 
,..,r: 
payment 
of 
unit 
allocation. 
The 
commissioner shall authorize state subsidy payments to the school 
administrative units tc be made in accordance with time schedules 
set forth in sections 15005, l5689-D and 15901 to 15910. 
2. 
Notificatio::: 
of 
allocation: 
commissioner's 
duty: 
superintendent' s 
dutv. 
The 
following 
provisions 
apply 
to 
notification 
of 
allocation 
by 
the 
commissioner 
and 
each 
superintendent. 
A. 
The commissioner shall annually, prior to February 1st. 
notify each school board of the estimated amount to be 
allocated to the school administrative unit. 
B. 
Each 
superintendent 
shall 
report 
to 
the 
municipal 
officers whenever t.he school administrative unit is notified 
of the allocation or a 
change is made in the allocation 
resulting from an adjustment. 
3. 
Payments of 
s~ate subsidy to unit's treasurer; basis. 
State subsidy payments must be made directly to the treasurer of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "An to H.P. 6, L.D. 1 
each school administra-::'ive unit. The payments must be based on 
audited financial 
reports 
submitted 
by 
school 
administrative 
units. 
4. 
Appeals. A scb-ool board may appeal the computation of 
state subsidy for the school administrative unit to the state 
board in writing within 30 days of the date of notification of 
the computed amount. The state board shall review the appeal and 
make an adjustment if i~ its judgment an adjustment is justified. 
The state board's decision is final as to facts supported by the 
record of the appeal. 
5. 
School purpose eltPE!nse requirement. Notwithstanding any 
other law« money allocated for school purposes may be expended 
only for school purposes. 
6. 
Balance of allocations. Notwithstanding any other law, 
general 
operating 
fund 
balances 
at 
the 
end 
of 
a 
school 
administrative unit's fiscal year must be carried forward to meet 
the unit's needs in the next year or over a period not to exceed 
years. 
Unallocated balances in excess of 3°-0 of the previous 
fiscal year's school budget must be used to reduce the state and 
local share of the total allocation for the purpose of computing 
state subsigy. 
School 
boards 
may 
carry 
forwarg 
unallocated 
balances in excess of 3% of the previous year's school bugget ang 
gisburse these fungs in the next year or over a period not to 
exceed 3 years. 
7. 
Required data: subsidy payments withheld. 
A 
school 
administrative 
unit 
shall 
provide 
the 
commissioner 
with 
information that the 
commissioner requests 
to carry out the 
purposes of this chapter, according to time schegules that the 
commissioner establishes. 
The commissioner may withhold monthly 
subsigy 
payments 
from 
a 
school 
administrative 
unit 
when 
information is not filed in 
the 
specifieg 
format 
ang with 
specific content ang within the specified time schedules. 
8. 
Unobligated balances. 
Unobligated balances from amounts 
appropriated for general purpose aid for local schools may not 
lapse but must be carried forward to the next fiscal year. 
§15689-C. 
Commissioner'S recommendation for funding levels: 
computations 
1. 
Annual recommendation. Prior to December 15th of each 
year, the commissioner, with the approval of the state board, 
shall 
recommend 
to 
the 
Governor 
and 
the 
Department 
of 
Administrative and Financial Services, Bureau of the Budget the 
funding levels that the commissioner recommends for the purposes 
of this chapter. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
2. 
Funding 
lev~~ computations. 
The 
following 
are 
ths 
funding 
level 
computations 
that 
support 
the 
commissioner'" 
funding level recommendations: 
A. 
The 
reguested 
funding 
levels 
for 
the 
operatinG 
allocation under section 156B3; 
B. 
The requested funding levels for debt service under 
section 15683-A, ~J~ich are as follows: 
(1) 
The 
kno~J'n obligations and estimates of anticipatec 
principal ann interest costs for the allocation year: 
(2) 
The expenditures for the insured value factor for 
the base year; 
(3) 
The level of lease payments 
and lease-purchase 
payments pursuant to section 15672, subsection 2-A for 
the year prior to the allocation year; and 
(4) 
Funds allocated by the state board for new school 
construction Drojects funded in the current fiscal year: 
C. 
The 
requested 
funding 
levels 
for 
adjustments 
under 
section 15689, which must be computed by estimating costs 
for the allocation year: and 
D. 
The requested funding levels for miscellaneous costs 
under section l5689-A. 
3. 
Guidelines fo;. updating other subsidizable costs. 
The 
commissioner's recommendation for updating percentages to bring 
base year actual costs to the eguivalent of one-year-old costs 
ma.y not exceed the average of the 2 most recent percentages of 
annual increase in the Consumer Price Index. 
§15689-D. 
Governor's ;.ecommendation for funding levels 
The Department of Administrative and Financial Services, 
Bureau of the Budget shall annually certify to the Legislature 
the funding levels that the Governor recommends under sections 
15683, 
15683-A, 
15689 
and 
15689-A. 
The 
Governor's 
recommendations must be transmitted to the Legislature within the 
time schedules set forth in Title 5, section 1666. 
§15689-E. 
Actions by Legislature 
The Legislature shall annually, prior to March 15th, enact 
legislation to: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" 
':0 H.P. 6, L.D. 1 
1. 
Appropriatio~ for state share of adjustments. 
debt 
service and operating; single account. 
Appropriate the necessary 
funds for the State's share for general purpose aid for local 
schools 
with 
a 
separate 
amount 
for 
each 
of 
the 
following 
components: 
A. 
Adjustments 
and 
miscellaneous 
costs 
described 
in 
sections 15689 ane. l5689-A, including an appropriation for 
special education pupils placed directly by the State, for: 
(1) Tuition a~d board for pupils placed directly by the 
State in accordance with rules adopted or amended by 
the commissioner; and 
(2) Special education tuition and other tuition for 
residents 
0::: 
state-operated 
institutions 
attending 
programs 
in 
school 
administrative 
units or private 
schools in accordance with rules adopted or amended by 
the commissioner; and 
B. 
The state shc.'"e of the total operating allocation and 
the total debt service allocation described in sections 
15683 and l5683-A; and 
2. 
Local cost shere exPectation. 
Establish the local cost 
share expectation described in section l567l-A. 
Funds for appropriations under this section must be placed 
in a single account. 
§15689-F. Actions by department 
Within 
the 
annual 
appropriations, 
the 
department 
shall 
follow the procedures described in this section. 
1. 
State's oblig2.7.ion. 
If the State's continued obligation 
for any program provided by one of the appropriated amounts under 
section l5689-E exceeds the appropriated amount. any unexpended 
balance from another of those appropriated amounts may be applied 
by the commissioner tO~7ard the obligation for that program. 
2. 
Cash 
flow. 
For 
the 
purpose 
of 
cash 
flow, 
the 
commissioner may pay 
t.he full state and local share of the 
payment amounts due on bond issues for school construction from 
that 
school 
administ:::-ative 
unit's 
state 
subsidy, 
excluding 
payments on non-state-funded projects. 
This subsection does not 
apply if a school administrative unit has less subsidy than the 
total principal and interest payment on bonds. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Sec. D·62. 20·A MRSA §§15690 to 15695 are enacted to read: 
§15690. Local aePropria~ions 
Beginning with the budget for the 2005-2006 school year, the 
following provisions apply to local appropriations for school 
purposes. 
1. 
School administrative unit contribution to total cost of 
funding public education from kindergarten to grade 12. 
The 
legislative body of each school administrative unit may vote to 
raise and appropriate an amount up to its reguired contribution 
to the total cost of education as described in section 15688. 
A. 
For a municipal school unit, an article in substantially 
the following form must be used when 
a 
single municipal 
school administrative unit is considering the appropriation 
of an amount up to its required contribution to the total 
cost of education as described in section 15688. 
(1) 
"Artic 1 s· .... : 
To see what sum the municipality 
will appropr':.ate for the school administrative unit's 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 a§ described in 
the 
Essential 
Programs 
and 
Services 
Funding 
Act 
(Recommend 
$ ...... ) 
and 
to 
see 
what 
sum 
the 
municipality 
will 
raise 
as 
the 
municipality's 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs 
and Services Funding Act in 
accordance with the Maine Revised Statutes. Title 20-A, 
section 15688. (Recommend $ •••••• ) " 
(2) 
The following statement must accompany the article 
in 
subparas:.:-aph 
(1) • 
"Explanation: 
The 
school 
administrative unit's contribution to the total cost of 
funding public education from kindergarten to grade 12 
as described in the Essential Programs 
and Services 
Funding Act is the amount of money determined by state 
law to be the minimum amount that a municipality must 
raise in order to receive the full amount of state 
dollars." 
B. 
For 
a 
school administrative district or 
a 
community 
school district. an article in substantially the following 
form must be used "Then the school administrative district or 
community school district is considering the appropriation 
of an amount up to its reguired contribution to the total 
cost of education as described in section 15688. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
(1) 
"Article .... : To see what sum each municipality 
will appropri ate for the school administrative unit's 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs and Services Funding Act and to 
see what 
sum 
each municipality will raise as each 
municipality's 
contribution 
to 
the 
total 
cost 
of 
funding public education from kindergarten to grade 12 
as described in the Essential Programs and Services 
Funding 
Act 
in 
accordance 
with 
the 
Maine 
Revised 
Statutes, Title 20 A, section 15688 (Recommends): 
Total cost by 
municipality 
Town A ($amount) 
Town B ($amount) 
Town C ($amount) 
Schgol District 
Toj;;,gl ($sum of a;Qove} 
Municipal local 
contribution 
Town A ($amount) 
Town B ($amount) 
Town C ($amount) 
Sl:;hggl Disj;;,rict 
Tgj;;,al 
(S§lJJ!! 
of 
g;Qgv~}" 
(2) 
The following §j;;,atemenj;;, mu§t gccgmpany j;;,he artil:;le 
in 
su;Qpgragraph 
(l}. 
"Explgnation: 
The 
§chogl 
administraj;;,ive unit's cgntri;Qutign tg the tgtal cgst of 
funding publ; c education frgm kinderggrten to grade 12 
as described in the E§sential Prggram§ and Services 
Funding Act is the amount gf mgney dej;;,ermined ;Qy sj;;,ate 
19w 
j;;,o 
be the minimlJJ!! amounj;;, 
j;;,hgj;;, egch municipalij;;,y 
musj;;, raise in order j;;,g receive j;;,he full amounj;;, of §taj;;,e 
dgllars." 
C. 
The 
§j;;,aj;;,e share of the j;;,gtal cgsj;;, of funding publil:; 
educaj;;,ign frgm kinderggrj;;,en to grade 12 as de§cri;Qed in 
section 15688, excluding state-funded de;Qt service for egch 
schgol 
admini§trative 
uniL 
i§ 
limited 
j;;,g 
j;;,he 
same 
propgrj;;,ign as j;;,he local school admini§traj;;,ive unij;;, raises of 
its required cgntribuj;;,ion tg j;;,he j;;,gtal co§j;;, of educaj;;,ign as 
descri;Qed 
in section 
15688, 
eXl:;luding 
sj;;,aj;;,e-funded 
debt 
service costs. 
2. 
Non-state-fu.n.ded 
debt 
service. 
For 
each 
school 
administrative 
unit's 
contribution 
to 
debt 
§ervice 
for 
non-state-funded major capital school constructign projel:;ts or 
non state funded porticns of major capital school construction 
projects, the legislative body of each schgol gdminisj;;,rative unit 
COMMITlEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
may 
vote 
to 
raise 
and 
appropriate 
an 
amount 
up 
to 
the 
municipality's or dist~ict's annual payments for non-state-funded 
debt service. 
A. 
An article in substantially the following form must be 
used when a school administrative unit is considering the 
appropriation 
for 
debt 
service 
allocation 
for 
non-state-funded 
school 
construction 
projects 
or 
non-state-funded portions of school construction projects. 
(1) 
"Article .... : To see what sum the (municipality 
or district) will raise for the annual debt service 
payments 
on 
a 
non-state-funded 
school 
construction 
project 
or 
non-state-funded 
portion 
of 
a 
school 
construction 
project 
in 
addition 
to 
the 
funds 
appropriated 
as 
the 
local 
share 
of 
the 
school 
administrative unit's contribution to the total cost of 
funding public education from kindergarten to grade 
12. 
(Recommend $ •••••• ) " 
(2) 
The following statement must accompany the article 
in subparagraph 
(1). 
"Explanation: 
Non-state-funded 
debt service 
; s 
the amount of money needed for the 
annual payment.s on the (municipality's or district's) 
long-term debt for major capital school construction 
that is not approved for state subsidy. The bonding of 
this long-term debt was approved by the voters on (date 
of original referendum). II 
3. 
Additional lo~al appropriation. 
A school administrative 
unit may raise and expend funds 
for educational purposes in 
addition to the funds under subsections 1 and 2. 
A. 
If the amount of the additional funds does not result in 
the unit's 
exceed~ng its maximum state and local spending 
target established. pursuant to section 15671-11.. subsection 
4. an article in substantially the following form must be 
used when a school administrative unit is considering the 
appropriation of additional local funds: 
(1) 
"Article .... : To see what sum the (municipality 
or district) will raise and to appropriate the sum of 
(Recommend $ ..... ) in additional local funds for school 
purposes under the Maine Revised Statutes. Title 20-11.. 
section 15690. (Recommend $ •••••• ) " 
(2) 
The following statement must accompany the article 
in 
subparagraph 
(1). 
"Explanation: 
The 
addi tional 
local funds are those locally raised funds over and 
above 
the 
school 
administrative 
unit' s 
local 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs and Services Funding Act and 
local 
amounts 
raised 
for 
the 
annual 
debt 
service 
payment 
on 
non-state-funded 
school 
construction 
projects or the non-state-funded portion of a school 
construction 
project 
that 
will 
help 
achieve 
the 
(municipality's or district's) budget for educational 
programs." 
B. 
If the amount ~xceeds the unit's maximum state and local 
spending target established pursuant to section l567l-A, 
subsection 4, an article in substantially the following form 
must 
be 
used 
,,;hen 
a 
school 
administrative 
unit 
is 
considering an appropriation of additional local funds. 
(1) 
"Article ....• 
Shall 
(name of municipality or 
district) raise and appropriate $ ••••••• in additional 
local 
funds, 
which 
exceeds 
the 
State's 
Essential 
Programs and Services funding model by $ •...•. ?" 
The (school committee or board of directors) recommends 
$ ••••.•••• for the following reasons: (state reasons) 
(2) 
The following statement must accompany the article 
in 
subparagraph 
(1). 
"Explanation: 
The 
additional 
local funds are those locally raised funds oyer and 
above 
the 
school 
administrative 
unit's 
local 
contribution 
to 
the 
total 
cost 
of 
funding 
public 
education from kindergarten to grade 12 as described in 
the Essential Programs and Services Funding Act and 
local 
amounts 
raised 
for 
the 
annual 
debt 
service 
payment 
on 
non-state-funded 
school 
construction 
projects or the non-state-funded portion of a school 
construction 
project 
that 
will 
help 
achieve 
the 
(municipali tv's or district's) budget for educational 
programs." 
4. 
Total budget ~~ticle. 
A school administrative unit must 
include a summary article indicating the total annual budget for 
funding public education from kindergarten to grade 12 in the 
school administrative v.nit. 
The amount recommended must be the 
gross budget of the school system. This article does not provide 
money unless the other articles are approved. 
A. 
"Article.... . 
To see what sum the (municipality or 
district) will authorize the school committee to expend for 
the fiscal year beginning (July L 
.... ) and ending (June 
30, .... ) from the school administrative unit's contribution 
to 
the 
total 
cost 
of 
funding 
public 
education 
from 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" t.o H.P. 6, L.D. 1 
kindergarten to 
a~ade 12 
as 
described in the Essential 
Programs and Services Funding Act. non-state-funded school 
construction proiects, 
additional local funds 
for 
school 
purposes 
under 
the 
Maine 
Revised Statutes, 
Title 
20-A, 
section 15690, u.nexpended balances, tuition receipts, state 
subsidy 
and other receipts for 
the support of schools. 
(Recommend $ ...... )" 
5. 
Vote. 
Actions taken pursuant to subsections 1 to 4 must 
be taken by a recorded vote. 
6. 
Administrativ~ costs for units with no P'lPils. If a 
school administrative unit is required to pay administrative 
costs and has no allocation of state or local funds, that unit 
may raise and expend fu.nds for administrative costs. 
§15691. Municipal assessment paid to district 
1. 
Presentation cf assessment schedule. 
The 
assessment 
schedule based on the budget approved at a 
community 
school 
district or school administrative district budget meeting must be 
presented to the treasurer of each municipality that is a member 
of the district. 
The assessment schedule must include each member municipality' s 
§bare of tbe school administratiYe unit's contribution to the 
tQtal co§t of funding Dublic education from kindergarten to grade 
as 
described in section 15688, 
the 
school administrative 
unit's contribution to debt service for non-state-funded school 
construction projects 
and 
additional 
local 
funds 
for 
school 
purposes under section 15690. 
2. 
Municipal treasurer's pa~ent schedule. The treasurer of 
the 
member 
municipality, 
after 
being 
presented 
with 
the 
assessment 
schedule, 
shall 
forward 
1/12 
of 
that 
member 
municipality's share to the treasurer of the district on or 
before the 20th day of each month of the fiscal year beginning in 
July. 
§15692. Special school 0istricts 
1. 
School administrative unit. For the purposes of section 
15695 and Title 20, 
sections 3457 
to 3460, 
a 
special school 
district is deemed to be a school administrative unit. 
2. 
Debt service. Debt service on bonds or notes issued by a 
special school district must be included in the school budget of 
the 
school 
administrative 
unit 
that 
operates 
the 
schools 
constructed by that district. The school board for the school 
administrative unit that operates the special district's schools 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
shall pay to the spec':_al school district all sums necessary to 
meet the payments of ,;nincipal and interest on bonds or notes 
when due and to cover :naintenance or other costs for which the 
special school distric~ is responsible. 
§l5693. School budget; ~udget formats 
1. 
Content. A school administrative unit shall include in 
its school budget document: 
A. 
The school adI1'inistrative unit I s total cost of funding 
public 
education 
from 
kindergarten 
to 
grade 
12. 
its 
non-state-funded debt service. if any. 
and any additional 
expenditures autho~ized by law: 
B. 
A summary of anticipated revenues and estimated school 
expenditures for the fiscal year: and 
C. The following statement. including the estimated dollar 
amount of state retirement payments: "This budget does not 
include the estiI1'C".ted amount of $....... in employer share 
of teacher retire:nent costs that is paid directly by the 
State." 
2. 
Budget deadhn.es. The following time limitations apply 
to adoption of a school budget under this section. 
A. 
At 
least 7 
days 
before the initial meeting of 
the 
legislative body 
responsible for 
adopting 
a 
budget. 
the 
school administrative unit shall provide a detailed budget 
document to that legislative body and to any person who 
requests one and resides within the geographic area served 
by the school administrative unit. 
B. 
Notwithstandina a provision of law or charter to the 
contrary. school administrative units may adopt an annual 
budget prior to June 30th. 
The school budgets for career 
and technical education regions must be adopted on or before 
August 1st. 
C. 
Notwithstanding 
any 
municipal 
charter 
provision. 
ordinance or other law to the contrary. if the level of 
state subsidy for the next school year is not finalized in 
accordance with this chapter before June 1st. the school 
board may delay a school budget meeting otherwise required 
to be held before July 1st to a date after July 1st. If a 
school board elects to delay a school budget meeting under 
this paragraph. 
the meeting must be held and the budget 
approved 
within 
days 
of 
the 
date 
the 
commissioner 
notifies the school board of the amount allocated to the 
COMMITtEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
school administrGtive unit under section 15689-8. 
When 
a 
school budget meeting is delayed under this paragraph, the 
school administrative unit may continue operation of the 
unit at the same budget levels as were approved for the 
previous year. Continued operation under the budget for the 
previous year is 
imited to the time between July 1st and 
the date the new bu.dget goes into effect. 
3. 
Budget 
form;:::':.. 
The 
following provisions 
apply to 
a 
budget format. 
A. Except as provided in subsection 4, the budget format is 
that prescribed by a majority of the school board until an 
article prescribing the school budget format is approved by 
a majority of vote~s in an election in which the total vote 
is at least 
20% 
of 
the 
number 
of 
votes 
cast in the 
municipality in tb.e last gubernatorial election, or 200, 
whichever is less. 
8. The format of the school budget may be determined in 
accordance with section 1306. 
C. It is the intent of the Legislature that a school board 
shall 
attempt 
to 
obtain 
public 
participation 
in 
the 
development of the school budget format. 
4. 
Budget format; town or city charter. In a municipality 
where the responsibiE ty for final adoption of the school budget 
is vested by municipal charter in a council, the school budget 
format may be changed through amendment of the charter under the 
home rule procedures of Title 30-A, chapter Ill, except that the 
amendment must be approved by a majority of voters in an election 
in which the total vote is at least 20 0y of the number of votes 
cast in the municipality in the last gubernatorial election. 
5. 
Budget formo_t; 
town meeting. 
When 
the final 
budget 
authority is vested in a town meeting operating under the general 
enabling procedures of Title 30-A, 
the format of the school 
budget may 
be determ;ned by 
the 
town meeting or under the 
procedures of Title 30-A, section 2522 or 2528. 
6. 
Budget format; community school district. The following 
provisions apply to the budget format of a 
community school 
district. 
A. 
An 
article containing the district's proposed budget 
format must be plGced on the next warrant issued or ballot 
printed if: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" 
t.o H.P. 6, L.D. 1 
(1) A majori':7 of the district school committee votes 
to place it cn the warrant or ballot; or 
(2) 
A writtex,-
petition signed by at least 10'l-o of the 
number 
of voters 
voting in 
the 
last gubernatorial 
election in each municipality within the 
community 
school district reguests it to be on the warrant or 
ballot. 
B. The article containing the budget format may be voted on 
by secret ballot at an election conducted in accordance with 
Title 30-A, sections 2528 to 2532. 
C. The district school committee shall: 
(1) 
Issue 
a 
warrant 
specifying that the 
municipal 
officers of ':he municipalities within the 
community 
school district shall place the budget format article 
on the secret ballot: and 
(2) Prepare and furnish the reguired number of ballots 
for 
carryina 
out 
the 
election. 
including 
absentee 
ballots. 
7. 
Budget format; articles. The articles prescribed in this 
chapter must be included in the budget format and be voted on in 
the adoption of the budget in order to determine state and local 
cost sharing. 
8. 
Change in budcret fOrmat. Any change in the budget format 
must be voted on at least 90 days prior to the budget year for 
which that change is to be effective. 
§15694. Actions on buda~t 
The following provisions apply to approving a school budget 
under this chapter. 
1. 
Checklist reU'!}.ired. Prior to a vote on articles dealing 
with school appropriations. the moderator of a regular or special 
school budget meeting shall reguire the clerk or secretary to 
make a checklist of the registered voters present. The number of 
voters listed on the checklist is conclusive evidence of the 
number present at the meeting. 
2. 
Reconsidera.tion. 
Notwithstanding 
any 
law 
to 
the 
contrary, in school administrative units where the school budget 
is finally approved bv the voters. a special budget meeting to 
reconsider action taken on the budget may be called only as 
follows. 
COMMIITfEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
A. 
The meeting must be held within 30 days of the regular 
budget meeting at ;,Thich the budget was finally approved. 
B. In a school c,drninistrative district or community school 
district, the meeting must be called by the school board or 
as follows. 
(1) 
A petit;on containing a 
number of signatures of 
legal voters 1n the member municipalities of the school 
administrative 
unit egualling at least 
10% 
of 
the 
number of voters who voted in the last gubernatorial 
election 
in 
member 
municipalities 
of 
the 
school 
administrative unit. or 100 voters, whichever is less, 
and 
specifying 
the 
article 
or 
articles 
to 
be 
reconsidered must be presented to the 
school board 
within 15 davs of the regular budget meeting at which 
the budget was finally approved. 
(2) On rece; ving the petition, the school board shall 
call the special budget reconsideration meeting, which 
must be hele. within 15 days of the date the peti tion 
was received. 
C. 
In a municipality, the meeting must be called by the 
municipal officers: 
(1) Within 15 days after receipt of a reguest from the 
school board, if the reguest is received within 15 days 
of the budget. meeting at which the budget was finally 
approved and it specifies the article or articles to be 
reconsidered; or 
(2) 
Within 
days 
after 
receipt 
of 
a 
written 
application Dresented in accordance with Title 30-A, 
section 2532, if the application is received within 15 
days of the budget meeting at which the budget was 
finally 
approved 
and it specifies 
the 
article 
or 
articles to be reconsidered. 
3. 
Inyalidation 0 7 action of special budget reconsideration 
meeting. If a special budget meeting is called to reconsider 
action taken at a reaular budget meeting, 
the actions of the 
meeting are invalid if t.he number of voters at the special budget 
meeting is less than the number of voters present at the regular 
budget meeting. 
4. 
Line-item transfers. Meetings 
reguested by 
a 
school 
board for the purpose of transferring funds from one category or 
line item to another must be posted for voter or council action 
within 15 days of the date of the reguest. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
§15695. Bonds; notes; -:;'-her 
All bonds, notes or other evidences of indebtedness issued 
for school purposes hv a 
school administrative unit for major 
capital expenses, bus purchases or current operating expenses, 
including tax or other revenue anticipation notes, are general 
obligations of the unit. 
1. 
Tax assessmer-::s. The municipal officers or school board 
shall reguire the sums that are necessary to meet in full the 
principal of and interest on the bonds, notes or other evidences 
of indebtedness issued pursuant to this section payable in each 
year to be assessed and collected in the manner provided by law 
for the assessment and sollection of taxes. 
2. 
Reduction. The sums to be assessed and collected under 
subsection 1 must be ;.educed by the amount of an allocation of 
funds appropriated by the Legislatyre to pay the principal and 
interest owed by the sshool administrative unit in a given year 
as certified to the ud t 
by the commissioner. The commissioner 
shall certify the amou:::.:: due to the unit within 30 days of its 
appropriation by the Leaislature. 
3. 
Co11ection. 
After 
assessment 
and 
reduction 
under 
subsection 2, 
the reTraining sum must be paid from ad valorem 
taxes, which may be levied without limit as to rate or amount 
upon all the taxable property within the school administrative 
unit. 
Sec. D-63. 20-A MRSA c. 608 is enacted to read: 
CHAPTER 608 
SCEDQL FINANCE ACT OF 2003 
§15751. 
Short tit1e 
This chapter may be known and cited as "the School Finance 
Act of 2003." 
§15752. 
Mandated 1egis:.ative appropriations for kindergarten 
to grade 12 eC.'J.cation 
In accordance with the phase-in schedule provided in chapter 
606-B, beginning in fiscal year 2008-09, 
the Legislature each 
year 
shall provide at least 
55% 
of 
the 
cost of 
the total 
allocation for kinderaarten to grade 12 education from General 
Fund revenue sources. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
For the purposes cf this chapter, and until such time as the 
Legislature may implement an alternative school funding system, 
"total allocation" means the foundation allocation for a year, 
the debt service allocation for that year, 
the 
Sum 
of all 
adjustments for that vear and the total of the additional local 
appropriations for the Drior year. 
In the event the Legislature 
implements an alterna':.ive school funding model that alters the 
meaning of the terms 
used in this Title or otherwise makes 
obsolete 
the 
system 
of 
allocations 
and 
local 
appropriations 
established by this Title, the term "total allocation" as it 
applies to the mandatory appropriation required by this section 
means the amount reasonably calculated as the eguivalent of this 
definition. 
§15753. 
Mandated legis.::_ative appropriations for special education 
Except 
as 
provio.eC', in section 15689, 
subsection 1, 
but 
~ithstanding any 
o':.her 
prov1s1on 
of 
chapter 
606-B, 
the 
laegj,slature shall proV':'de 100, of a SChool admj,nistratiye unit's 
special 
education 
costs 
as 
calculated 
pursuant 
to 
section 
1568l-A, subsection 2. 
For the purposes of the mandatory appropriation reguired by 
this section, and in accordance with the essential programs and 
services school fundina allocation system established in chapter 
606-B, 
the 
commissioner 
shall 
identify 
and 
provide 
in 
the 
commissioner's 
recommendation pursuant to section 15689-C the 
total special education costs reguired to be funded pursuant to 
this section. 
In addition to 
any appropriations reguired by 
section l5689-E, the Leaislature shall appropriate and ensure the 
accurate distribution of the total 
amount 
identified by the 
commissioner. 
adjusted 
by the federal 
reimbursements 
for 
the 
costs of special education services mandated by federal or state 
law, rule or regulation that will be provided to the individual 
school administrative units for that Same school year. 
§15754. 
Fund for the Efficient Delivery of Educational Services 
The Fund for the Efficient Delivery of Educational Services, 
referred to in this section as "the fund," is established as a 
dedicated nonlapsing account within the Department of Education. 
This 
section 
prov1des 
for 
the 
design, 
implementation, 
administration and use of the fund. 
1. 
Source of 
fv~ds: purpose. 
Funds 
for appropriations 
under this section must be appropriated in addition to the total 
amount annually approl?riated for general purpose aid for local 
schools and must be placed into a single account. 
Beginning in 
fiscal year 2005-06 and in each succeeding fiscal year until 
fiscal year 2008-09. an amount calculated to be not greater than 
2% of the total amount annually appropriated for general purpose 
COMMiTtEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
aid 
for 
local 
SChools 
must 
be 
dedicated 
to 
the 
fund 
and 
distributed from the ::und to those school administrative units 
and municipalities tho.':: are able to demonstrate significant and 
sustainable 
savings 
i::J. 
the 
cost 
of 
delivering 
educational 
services and 
improved student achievement through changes in 
governance, 
administrative 
structure 
or 
adopted 
policy 
that 
result in the creation of consolidated school administrative 
uni ts, 
broad-based 
Durchasing 
alliances, 
enhanced 
regional 
delivery 
of 
educational 
services 
or 
collaborative 
school-municipal service delivery or service support systems. 
Beginning in fiscal ye~r 2005-06, the Legislature shall annually, 
prior to March 15th, enact legislation to allocate the following 
amounts calculated based on the amount appropriated for general 
purpose aid for local schools to the fund during each of the 
following fiscal years: 
A. 
In fiscal year 2005-06, an amount equivalent to 0.83% of 
the total amount aopropriated for general purpose aid for 
local schools; 
B. 
In fiscal year 2006-07, an amount equivalent to 0.69% of 
the total amount appropriated for general purpose aid for 
local schools; 
C. 
In fiscal year 2007-08, an amount equivalent to 1.5% of 
the total amount appropriated for general purpose aid for 
local schools; and 
D. 
In fiscal year 2008-09, an amount equivalent to 2% of 
the total amount appropriated for general purpose aid for 
local schools. 
Any balance remaining in the fund at the end of any fiscal year 
does not lapse and must be carried forward for the next fiscal 
~ 
2. 
Administratic .... ; 
plan for implementation of the fund. 
The department shall 2.dminister the fund or may contract for 
services for administration of the fund. 
The commissioner, in 
consultation with the ~xecutive Department, State Planning Office 
and the other agencies, organizations and individuals determined 
appropr i ate 
by 
the 
commissioner, 
shall 
establish 
an 
implementation plan for 
the 
fund that includes, 
but is not 
limited to, the following: 
A. 
The 
establishment of criteria through which 
school 
administrative 
units 
and 
municipalities 
may 
demonstrate 
significant 
and 
sustainable 
savings 
in 
the 
cost 
of 
delivering 
educational 
services 
and 
improved 
student 
COMMIITEE AMENDMENT 
COMMITTEE AMENDMENT "A'! to H.P. 6, L.D. 1 
achievement throuGh changes in governance, 
administrative 
structure or ado'Cted policy that result in the creation of 
consolidated 
sch001 
administrative 
units, 
broad-based 
purchasing 
a11icnces, 
enhanced 
regional 
delivery 
of 
educational 
services 
or 
collaborative 
school-municipal 
service delivery o~ service support systems; 
B. 
Pursuant to criteria established in accordance with this 
section, a school administrative unit or municipality may 
apply to the comm'ssioner for a distribution from the fund 
during the perioc beginning with the start of fiscal year 
2005-06 and endina prior to the end of fiscal year 2008-09; 
and 
C. 
Pursuant to criteria established in accordance with this 
section, the commissioner may authorize distributions from 
the fund in the fe~m of competitive and planning grants. 
§15755. 
Entitlement 
The State's schec 1 administrative units and municipalities 
are entitled to the ap?ropriations required by this chapter. 
Sec. D-64. 30-A M:aSA §2181, sub-§4, 1JE, as enacted by PL 2003, 
c. 696, §12, is amended to read: 
E. 
Identify 
best 
management 
practices 
and 
make 
this 
information availcble to the public, 
including, 
but not 
limited 
to, 
best 
management 
practices 
that 
facilitate 
property tax rate reduction pursuant to the increasing state 
share of the tota::' cost of essential programs and services 
under Title 20-A, chapter 606-B; 
Sec. D-65. 30-A MESA §6006-F, sub-§6, as enacted by PL 1997, 
c. 787, §13, is amended to read: 
6. 
Forqiveness 
ryf 
principal 
payments. 
The 
fund 
must 
provide direct grants by forgiving the principal payments of a 
loan for an eligible school administrative unit. 
The amount of 
the forgiveness of principal payments must be determined by the 
school 
administrative unit's state 
share 
percentage 
9~--eeBE 
se!'vi-ee-€9st.s as determined in Title 20-A, section ;1.99;1.;1. 15672, 
subsection 31, not to exceed: 
A. 
Seventy percent and no less than 30% for health, safety 
and compliance; 
B. 
Seventy percent and no less than 30<;0 for repairs and 
improvements; and 
COMMlrtEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
C. 
~~~t:y Sevent,:: percent and no less than 
6G% 
30°1> 
for 
learning space upgrades. 
Sec. D·66. Fund f-:;--
~he Efficient Delivery of Educational Services; 
implementation plan. 
Th9 Commissioner of Education shall submit a 
proposed plan to 
govern the design, implementation, management 
and 
oversight 
of 
the 
Fund 
for 
the 
Efficient 
Delivery 
of 
Educational Services established in the Maine Revised Statutes, 
Title 20-A, 
section 1.5754 to the Joint Standing Committee on 
Education and Cultural Affairs by March 31, 2005. 
As part of 
this 
review, 
the 
commissioner 
shall 
consider 
the 
efficient 
delivery of 
educatio~al services in rural and isolated small 
school administrative 'J.nits. 
The joint standing committee may 
report out a bill designed in accordance with the intentions of 
this Part to govern the design, implementation, management and 
oversight of the Fund for the Efficient Delivery of Educational 
Services. 
Sec. "J·67. Fund f'.:':- the Efficient Delivery of Educational Services; 
distribution Qf the fune: in fiscal year 2005·06. 
Notwithstanding the 
Maine 
Revised 
Statutes, 
Title 
20-A, 
section 
15754, 
the 
allocations from the General Purpose Aid to Local Schools program 
in fiscal year 2005-06 to the Fund for the Efficient Delivery of 
Educational Services m"J.st be used for the transition adjustment 
pursuant 
to 
Title 
20-A, 
section 
15686, 
subsection 
1. 
The 
allocation of funds from the Fund for the Efficient Delivery of 
Educational Services must be distributed to school administrative 
units that are eligib19 for the transition adjustment under the 
criteria established i~ Title 20-A, section 15686, subsection 1. 
Sec. D·68. Sharing of total costs in school administrative districts and 
community 
school 
districts; 
Department 
of 
Education 
review. 
Notwi thstanding the Maine Revised Statutes, Title 20-A, section 
15688, subsection 2 ane to ensure that member municipalities of 
school administrative districts and community school districts 
whose cost-sharing formulas were established in accordance with 
Title 
20-A, 
sections 
1301 
and 
1704, 
respectively, 
do 
not 
experience 
significant 
adverse 
effects 
as 
a 
result 
of 
the 
cost-sharing 
mechanism 
established 
pursuant 
to 
Title 
20-A, 
section 15688, subsection 2, the Department of Education shall 
conduct a 
review and analysis, 
for each school administrative 
unit, of the implications of this proposed cost-sharing mechanism 
on 
the 
member 
municipalities 
of 
these 
school 
administrative 
districts and 
community 
school districts. 
The 
Department of 
Education shall assist the member municipalities of these school 
districts in developing transition plans that include a phase-in 
to achieve the new method of determining member municipalities' 
local cost of educaticn in accordance with Title 20-A, section 
15688, 
subsection 2 
no later than fiscal year 
2008-09. 
The 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "P." ':0 H. P. 6, L. D. 1 
Department of Educatio~ shall report the findings of this review, 
including any 
recommended legislation, 
to the Joint 
Standing 
Committee on Education and Cultural Affairs by March 31, 2005. 
The Joint Standing Comrr.ittee on Education 
authorized to introduce 
a bill related 
Education report to 
':he First Regular 
Legislature. 
and Cultural Affairs is 
to the Department of 
Session of the 
l22nd 
Sec. D-69. 
Metho{ 'Jf cost sharing; exception. 
Beginning in 
fiscal 
year 
2005-06, 
the 
prov1S10ns 
of 
the 
Maine 
Revised 
Statutes, Title 20-A, section 15688, sUbsection 2 do not apply in 
determining the local cost of education of member municipalities 
in Maine School Administrative Districts No. 6 and No. 44. 
The 
cost-sharing 
formulas 
established 
between 
the 
member 
municipali ties in these 2 school administrative districts prior 
to January 1, 
2005 
~emain in effect until the 
formulas 
are 
changed pursuant to Title 
20-A, 
section 1301, 
subsection 3. 
Pursuant to section 68. all other school administrative districts 
and community school c.istricts whose cost-sharing formulas were 
established in accordance with Title 20-A, 
sections 1301 and 
1704, 
respectively, 
remain subject to a phase-in approach to 
achieve the requiremen':s of Title 20-A, section 15688, subsection 
and must reach full implementation of this provision no later 
than fiscal year 2008-09. 
Sec. 
D· 70. 
Crite .... :2 
for 
isolated 
small 
school 
adjustment; 
rulemaking. 
For fisca:' year 2005-06 and pursuant to the Maine 
Revised 
Statutes, 
Titie 
20-A, 
section 
15683, 
subsection 
1, 
paragraph F, the Commissioner of Education shall use the proposed 
model that was approved by the State Board of Education during 
its December 2004 meeting to determine the school administrative 
units that qualify for the adjustment for isolated small schools, 
except that the commissioner shall use the following criterion 
change for isolated small 
elementary schools: 
for elementary 
schools, the distance 
~rom the nearest school is reduced from 10 
to 8 miles. 
The commissioner shall develop provisionally adopted 
rules that establish the qualifications for the adjustment for 
isolated small schools in accordance with Title 20-A, section 
15687 no later than December 2, 2005 so that the Legislature may 
consider these criteric during the Second Regular Session of the 
l22nd Legislature. 
Sec. D·71. Transi':;on adjustment for fiscal year 2006·07. 
To 
m1n1mize the adverse fiscal impact that may be experienced by 
some school administrative units as a result of the phase-in of 
the Essential Programs and Services Funding Act, the Commissioner 
of Education shall facilitate a review and analysis of the need 
for 
a 
transition 
adj ustment 
in 
fiscal 
year 
2006-07. 
The 
Commissioner of Education, no later than January 13, 2006, shall 
make 
a 
recommendation 
to 
the 
Joint 
Standing 
Committee 
on 
COMMI1TEE AMENDMENT 
COMMITTEE AMENDMENT "A" '::0 H.P. 6, L.D. 1 
Education 
and 
Cultu=al 
Affairs 
regarding 
the 
eligibility 
requirements 
and 
funding 
levels 
necessary 
for 
a 
transition 
adjustment in fiscal :'T'3ar 2006-07. 
The recommendations of the 
Commissioner of Education must be consistent with the provisions 
of the Maine Revised Statutes, Title 20-A, section 15686. 
S 
D 72 A 
I· 
1-" 
ec. 
-
. 
pp IC2 ,'~n. 
This Part applies to school budgets 
passed for the fiscal year beginning July 1, 2005, and thereafter. 
Sec. D-73. Effective :·.ate. 
Except for that portion of this Part 
that enacts the Maine Revised Statutes, Title 20-A, section 15754 
and that portion that ;:;,mends Title 30-A, section 2181, subsection 
4, paragraph E, and except for sections 66 to 71, this Part takes 
effect July 1, 2005. 
PARTE 
Sec. E-l. 36 MRSl. §6201, sub-§l, as amended by PL 1993, c. 
570, §9, is further amended to read: 
1. 
Benefit 
bas~. 
"Benefit 
base" 
means 
property 
taxes 
accrued or rent constituting property taxes accrued. 
In the case 
of 
a 
claimant 
payinq 
both 
rent 
and 
property 
taxes 
for 
a 
homestead, benefit base means both property taxes accrued and 
rent constituting property taxes accrued. 
The benefit base may 
not exceed $3,000 for single-member households and $4,000 for 
households with 2 or mo~e members. 
Sec. E-2. 36 MRSA §6201, sub-§ll-A, as amended by PL 1999, c. 
401, Pt. R, §1 and affected by §2, is further amended to read: 
II-A. 
Rent 
co~stitutinq 
property 
taxes 
accrued 
for 
nonelderly household. 
"Rent constituting property taxes accrued 
for 
nonelderly household" 
means 
;1,8% 
20% 
of 
the 
gross 
rent 
actually paid in cash or its equivalent in any tax year by a 
claimant and the claimant' s household solely for the right of 
occupancy of their Maine homestead in the tax year and which rent 
constitutes the basis.-
in the succeeding calendar year, 
of a 
claim for relief under this chapter by the claimant. 
Sec. E-3. 36 MRSA §6204, as amended by PL 2001, c. 396, §42, 
is further amended to read: 
§6204. Filinq date 
A claim may not be paid unless the claim is filed with the 
Bureau of Revenue Services on or after August 1st and on or 
before the following geeeffiae~ Mgy 31st. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" -::0 H.P. 6, L.D. 1 
Sec. E·4. 36 MRSA. ~ry207, sub·§l, 1fA·l, as amended by PL 1997, 
c. 557, Pt. A, §3 and 3.ffected by Pt. G, §1, is further amended 
to read: 
A-I. 
Fifty percent of that portion of the benefit base that 
exceeds 
4'1-0 but does not exceed 
8'1-0 of income plus 100°1) of 
that portion of the benefit base that exceeds 8% of income 
to a maximum payment of $~TQQQ $2,000. 
Sec. E·5. 36 MRSi~ §6207, sub.§2, as amended by PL 1997, c. 
557, Pt. A, §3 and affected by Pt. G, §1, is repealed. 
Sec. E·6. 36 MRSA §'5209, as amended by PL 1989, c. 508, §25, 
is further amended to ~ead: 
§6209. 
Annual adjustme~~ 
1. 
Household 
l~~itation adjustment. 
8e~4RR4R~--Ma~ea--~T 
~989r--Ml.Q--annua-l--I.y--1:-ae.J?-e.a:~&e-I'-,..-_Re ~ 
State Tax Assessor shall 
determine annually the household income eligibility adjustment 
factor. That factor sRaH !!l.l.!.£t be multiplied by the applicable 
income 
limitations 
~r. 
section 
6206, 
as 
previously 
adjusted 
according to this subsection, aflfl*ieas;!'e for the year prior to 
that for which relief is requested. 
The result saa;!,;!, must be 
rounded to the nearest $100 and saa;!,l-apflly applies to the year 
for which relief is requested corresponding to the year on which 
the annualized cost of living adjustments were based. 
8e~iRRiR~ 
Ma~ea-1T-~~~~7-~~~~~~~l--~~~~~~-~-aa}as~-_ae 
iReeffie-~iffii~a~ieR-iR-se6tieR-~aQ1T-sassee~ieR-aT 
2. 
Benefit base maximum adjustment. 
Beginning March 
1, 
2006, 
the 
State 
Tax 
Assessor 
shall 
annually 
multiply 
the 
household income eligibility adjustment factor by the maximum 
benefit base amounts specified in section 6201, subsection 1, as 
previously adjusted. 
The result must 1>e rounded to the nearest 
$50 
and applies to the application period beginning the next 
August 1st. 
Sec. E·7. 
Application. 
This 
Part 
applies 
to 
claims 
for 
benefits under the Maine Residents Property Tax Program filed for 
application periods that begin on or after August 1, 2005. 
PARTF 
Sec. F·l. 36 MRSA §'583, sub·§l, as repealed and replaced by PL 
2003, c. 20, Pt. BB, §l and affected by §3, is repealed and the 
following enacted in its place: 
COMMITTEE AMENDMENT 
COMMI TTEE AMENDMENT "F... 
':'0 H. P. 6, L . D • 1 
1. 
Exemption aro":.".J.:nt. 
Except for assessments for special 
benefits, 
the 
just va'ue of 
$13,000 
of the 
homestead of 
a 
permanent resident of this State who has owned a homestead in 
this State for the prs:eding 12 months is exempt from taxation. 
In determining the losal assessed value of the exemption, the 
assessor shal1 multiph' the amount of the exemption by the ratio 
of current just value 
upon which the assessment is based as 
furnished in the assessor's annual return pursuant to section 
383. 
If the title to the homestead is held by the applicant 
jointly or in common vii th others, the exemption may not exceed 
$13,000 
of 
the 
just 
value 
of 
the 
homestead, 
but 
may 
be 
apportioned among the f"'lwners who reside on the property to the 
extent of their respective interests. 
A municipality responsible 
for administering the ':lomestead exemption has no obligation to 
create separate accounts for each partial interest in a homestead 
owned jointly or in common. 
Sec. F-2. 36 MRSJ,_ §683, sub-§l-A, as enacted by PL 2003, c. 
20, Pt. 55, §2 and affected by §3, is repealed. 
Sec. F-3. 36 MRSA §683, sub-§§3 and 4, as enacted by PL 1997, 
c. 643, Pt. HHH, §3 an~ affected by §10, are amended to read: 
3. 
Effect on state valuation. 
~:ae Fifty percent of the 
just value of homesteads exempt under this subchapter must be 
included in the annual determination of state valuation under 
sections 208 and 305. 
4. 
Property tax: :::-ate. 
~:ae Fifty percent of the value of 
homestead exemptions u:r.der this subchapter must be included in 
the total municipal valuation used to determine the municipal tax 
rate. 
The 
municipal tax rate 
as finally determined may 
be 
applied to only the taxable portion of each homestead qualified 
for that tax year. 
Sec. F-4. 36 MRS A §68S, sub-§2, as enacted by PL 1997, c. 643, 
Pt. HHH, §3 and affected by §10, is amended to read: 
2. 
Entitlement tc reimbursement by the State; calculation. 
A municipality that has approved homestead exemptions under this 
subchapter may recover from the State *99% ~ 
of the taxes lost 
by reason of the exemptions upon proof in a form satisfactory to 
the bureau. 
The bureau shall reimburse the Unorganized Territory 
Education and Services ~und for *99% 50% of taxes lost by reason 
of the exemption. 
Sec. F-S. Applicati'Jn. 
This Part applies 
to property tax 
valuations determined en or after April 1, 2005. 
COMMIITEE AMENDMENT 
COMMITTEE AMENDMENT lOA" to H.P. 6, L.D. 1 
PARTG 
Sec. G·l. 30·A MRS A §5681, sub·§2, ,C, as enacted by PL 1999, 
c. 731, Pt. U, §1, is amended to read: 
C. 
"Annual growth ceiling" for fiscal year 6QQQ-Q-l--ffi&aBS 
~he-affi9~~~-~~~~~~~-~ae-~~ea6~~e~-~-~~~~~-Se~~emaeF 
IT-~-a&-~~-e~~~~-~~~~~~~~~4-~-~a~-~~-geye~BmeBt 
F~Ba-i~-~~~~~~-~999-QQ 2005-06 means SlOO,OOO,OOO. 
For 
subsequent fiscal years, 
"annual growth ceiling" must be 
determined 
by 
the 
State 
Tax 
Assessor 
by 
September 
1st 
annually and meanE the annual growth ceiling adjusted by the 
lower of the increase for the previous fiscal year in the 
Consumer Price Index or the increase in receipts from the 
taxes imposed under Title 36, Parts 3 and 8. 
The annual 
growth ceiling may 
not 
be 
less 
than the 
annual 
growth 
ceiling for the previous year. 
Sec. G·2. 
Applica~i'Jn. 
This 
Part applies to fiscal years 
beginning on or after July 1, 2005. 
PARTH 
Sec. H·l. 30·A MRSA §5681, sub·§5·B, as enacted by IB 2003, c. 
2, §3, is amended to read: 
5-B. 
Fund for the Efficient Delivery of Local and Reqional 
Services. 
For the mon~hs beginning on or after July 1, 2004 and 
before the distributions required by subsections 4-A and 4-B, 2% 
of all receipts transferred each month pursuant to subsection 5 
must be deposited in the Fund for the Efficient Delivery of Local 
and 
Regional 
Services, 
as 
established in subsection 
3, 
and 
distributed 
to 
those 
municipalities 
and 
counties 
that 
can 
demonstrate significan': 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. H·2. 36 MRSA ?t. 11 is enacted to read: 
PART 11 
2::ATE TAX POLICY GOALS 
CHAPTER 931 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
TA-Z BURDEN REDUCTION GOALS 
§7301. 
Tax burden rec:';.'.:tion goals 
It is the goal 2.:1d policy of the State that by 2015 the 
State's total state an~ local tax burden be ranked in the middle 
1/3 of all states. as determined by the United States Census 
Bureau's 
most 
recent 
tax 
burden 
analysis, 
adjusted 
by 
the 
assessor to reflect 'c.he State's unique expenditure tax relief 
programs. 
It is the goal anf policy of the State that additional state 
funds provided to municipalities through increases in the state 
share of education funding 
under 
the essential programs 
and 
services funding model must, to the greatest possible extent, be 
available for statewide property tax reduction. 
§7302. 
Progress repo:.~~ng and data 
1. 
Assessment c::Jc. report. The State Planning Office shall 
separately assess and :::-eport on the progress made by the State, 
municipalities, 
coun~ies 
and 
school 
administrative 
units, 
respectively, 
in 
achieving 
the 
tax 
burden 
reduction 
goals 
established in section 7301. 
2. 
Indicators: ?--::.nual report. 
With reference to Title 5, 
chapter 142: Title 20-A:, section 15671. subsection 1: and Title 
30-A, seQt10ns 7Q6-A and 5721-A. the State Plann1ng Office &ball 
develop and apply spedfic. g:uantJ,fil!l,bl..l performance indiQl!I,tors 
against which the prooress in achieving the tax burden reduction 
goals established in section 7301 can be measured. 
On January 
15, 2006 and annually thereafter, the State Planning Office shall 
report to the Governor and to the joint standing committee of the 
Legislature having jurisdiction over taxation matters on the 
progress made by the State, counties, municipalities and school 
administrative units, respectively, in achieving the tax burden 
reduction goals. 
The report required by this subsection must be 
comprised of 4 distinct parts reporting on the progress made by 
the State, 
municipali~ies, counties 
and 
school administrative 
units, respectively. 
The State Planning Office may also include 
in its 
report 
recommendations 
on 
alternative 
strategies 
to 
achieve the tax burden reduction goals established in section 
7301 that reflect the best practices in this State, other states 
and other countries. 
3. 
Data. 
The State Planning Office shall annually collect 
and 
analyze 
data 
regarding 
spending 
and 
revenues 
for 
municipalities. counties and school administrative units. 
The 
State Planning Office shall submit an annual report that provides 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "p._" to H.P. 6, L.D. 1 
information 
and 
analysis 
regarding 
government 
spending 
and 
revenue 
behavior 
and 
trends 
to 
the 
Governor 
and 
the 
joint 
standing committee of the Legislature having jurisdiction over 
taxation matters. 
T~e report 
must 
include 
information that 
identifies 
spending 
and 
revenue 
behavior 
by 
individual 
municipalities, counties and sChool administrative units. 
Up01l 
reguest, other departIi'ents of State Goyernment shall cooperate 
and assist the State Planning Office in the preparation of the 
report. 
Sec. H-3. Fund fo::- the Efficient Delivery of Local and Regional 
Services; 
distribution. 
The 
Department 
of 
Administrative 
and 
Financial Services shall present a bill to the First Regular 
Session 
of 
the 
122nd 
Legislature 
by 
March 
1, 
2005 
that 
establishes the details of a plan for the design, implementation, 
management and oversight of the Fund for the Efficient Delivery 
of Local and Regional Services, established in the Maine Revised 
Statutes, Title 30-A, section 5681, subsection 3, including the 
distribution of the fund, in the form of competitive grants and 
planning 
grants 
to 
municipalities, 
counties 
and 
regional 
government 
subdivisions 
that 
demonstrate 
significant 
and 
sustainable savings in the cost of delivering local and regional 
governmental services, or, in the case of planning grants, the 
potential for such savings, through collaborative approaches to 
service 
delivery, 
enhanced 
regional 
delivery 
systems, 
the 
consolidation 
of 
regional 
services 
and 
the 
creation 
of 
broad-based purchasing alliances. 
PART I 
Sec. 
1-1. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FIN~~CIAL SERVICES, DEPARTMENT OF 
Homestead Property Tax Exemption Reimbursement 
0886 
following 
Ini tiati ve: 
To increase the homestead exemption to $13,000 and 
to provide 50% reimbursement to municipalities. 
GENERAL FOND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$53,872 
$53,872 
2006-07 
$162,789 
$162,789 
Homestead Property Tax Exemption 
- Mandate Reimbursement 
0887 
Ini tiative: 
To reimburse municipalities 
90°" of the additional 
costs associated with c~anges to the homestead exemption. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Maine Revenue Services 
0002 
Initiative: 
Provides funds for 
related 
costs 
associated 
with 
Residents Property Taz 
Program, 
computer programming c~sts. 
GENERAL FUND 
POSITIONS -
LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
2005-06 
$115,000 
$115,000 
2006-07 
$0 
$0 
one Tax Examiner position and 
the 
expansion 
of 
the 
Maine 
including one-time 
funds 
for 
2005-06 
2006-07 
1.000 
1.000 
$52,529 
$56,513 
$109,517 
$85,002 
$162,046 
$141,515 
ADMINISTRATIVE AND FIP.AFCIAL SERVICES, DEPARTMENT OF 
DEPAR"l"MENT TOTALS 
2005-06 
2006-07 
GENERAL FUND 
$330,918 
$304,304 
DEPAR"l"MENT TOTAL -
ALL :'!UNDS 
$330,918 
$304,304 
EDUCATION, DEPARTMENT 07:' 
General Purpose Aid fo~ Local Schools 
0308 
Initiative: 
Provides 
funds 
for 
the 
Fund 
for 
the Efficient 
Delivery of Educational Services. 
Funds appropriated in fiscal 
year 
2005-06 
only 
2!.:-e 
to 
be 
used 
to 
provide 
transition 
adjustments in order ':0 minimize the adverse fiscal impact that 
may be experienced by some municipalities as a result of the 
phase-in of the essential programs and services model. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$6,962,382 
$6,962,382 
2006-07 
$6,194,152 
$6,194,152 
General Purpose Aid fo~ Local Schools 
0308 
Initiative: 
Appropriates 
to 
provide 
additional 
deappropriates 
funds 
in 
funds in fiscal year 2005-06 in order 
subsidy 
to 
local 
school 
units 
and 
fiscal 
year 
2006-07 
due 
to 
revised 
COMMIITEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
projections of the amo~nt of subsidy required to fund the State's 
share of the cost of essential programs and services. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$6,463,417 
$6,463,417 
2006-07 
($5,963,417) 
($5,963,417) 
Fund for the Efficient Delivery of Educational Services 
Initiative: 
Allocates 
funds 
for the 
Fund 
for 
the Efficient 
Delivery of Educationc.::' Services. 
Funds appropriated in fiscal 
year 
2005-06 
only 
a::-e 
to 
be 
used 
to 
provide 
transition 
adjustments in order to minimize the adverse fiscal impact that 
may be experienced by some municipalities as a result of the 
phase-in of the essential programs and services model. 
OTHER SPECIAL REVENUE F'JNDS 
All Other 
OTHER SPECIAL REVENUE 
F~NDS TOTAL 
EDUCATION, DEPARTMENT OJ! 
DEPARTMENT TOrALS 
GENERAL FUND 
O'lBER SPECIAL JlE\1:EJ:'lJE FUNDS 
DEPARTMENT TOrAL -
ALL FUNDS 
EXECUTIVE DEPARTMENT 
State Planning Office 0082 
2005-06 
$6,962,382 
$6,962,382 
2005-06 
$13,425,799 
$6,962,382 
$20,388,181 
2006-07 
$6,194,152 
$6,194,152 
2006-07 
$230,735 
$6,194,152 
$6,424,887 
Initiative: 
Provides 
funds 
for contractual services 
for 
the 
required data collection, data entry and analysis. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
EXECUTIVE DEPARTMENT 
DEPARTMENT TOrALS 
GENERAL FUHD 
DEPARTMENT TOrAL -
ALL ::1JNDS 
2005-06 
$50,000 
$50,000 
2005-06 
$50,000 
$50,000 
2006-07 
$50,000 
$50,000 
2006-07 
$50,000 
$50,000 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "'F-" to H. P. 6, L. D. 1 
SECTION ".l'O'.rALS 
GENERAL FUND 
OTHER SPECIAL REVEJ:mE FUNDS 
SECTION ".l'O'.rAL -
ALL Fm'.DS 
2005-06 
$13,806,717 
$6,962,382 
$20,769,099 
2006-07 
$585,039 
$6,194,152 
$6,779,191 ' 
SUMMARY 
Part A establishes a General Fund appropriation limitation 
that limits the growth of General Fund revenues to the rate 
established by a formula that is based on real personal income 
growth and population growth. 
The limit is higher when the state 
and local tax burden for the State is reduced to the middle 1/3 
of all states. 
Part A also restructures the Maine Budget Stabilization Fund 
and changes the primary use of the fund to budget stabilization 
during periods when General Fund revenues are insufficient to 
meet allowable Genera: Fund appropriations. 
The Maine Budget 
Stabilization Fund is capped at 12°-t. of General Fund revenues. 
When all designated year-end transfers of excess General Fund 
revenues have reached their caps, excess revenues are transferred 
to a new Tax Relief Fund for Maine Residents. 
Part 
B establishes limits on the growth of 
county tax 
assessments. 
Part 
C 
establishes 
limits 
on 
the 
growth 
of 
municipal 
property tax levies. 
Part D: 
1. 
Provides a 4-year ramp to achieve 55% state share of 
100% of essential programs and services; 
2. 
Modifies special education distributions by reducing the 
minimum state allocati':)n adjustment in fiscal year 2005-06 to be 
the greater of the 5°", minimum allocation or a percentage of the 
school unit's special education costs. 
The percentage of special 
education costs is increased from 
84q.o to 
100q.o. 
This provides 
funds 
to be 
used for transition adjustments 
in fiscal year 
2005-06; 
3. 
Provides funes in fiscal year 2005-06 for transition 
adjustments. 
Funds 
2.ro 
provided by the modification to the 
minimum state allocations as described in 2, above. 
Funds are 
also 
provided 
by 
trc.nsferring 
funds 
from 
the 
Fund 
for 
the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Efficient Delivery of Educational Services. 
The amendment moves 
a portion of the planned fiscal year 2006-07 appropriation to 
that fund forward to fiscal year 2005-06, thus making more funds 
available for transfer to transition adjustment purposes; 
4. 
Directs the Commissioner of Education to develop and 
report recommendations for a transition adjustment in fiscal year 
2006-07 to the Joint Standing Committee on Education and Cultural 
Affairs; 
5. 
Directs the Department of Education to phase-in the 
impact of cost-sharing change; the Department of Education is 
directed to report its plan to the Joint Standing Committee on 
Education and Cultural Affairs by March 31, 2005; 
6. 
Exempts 
SAD 
and 
SAD 
from 
the total cost of 
education mechanism enacted by Public Law 2003, chapter 712; 
7. 
Provides a school administrative unit spending cap based 
on 
100°1:> of the essential programs and services total cost of 
education and provides for a local override process. 
It defines 
the article that must be voted upon in order to exceed the cap. 
It requires that in all cases where local voter approval of the 
article is provided for, 
the vote must be by referendum or 
written ballot. 
It provides that in cases where a municipal 
charter places final approval of the school budget in a council, 
a majority of the entire membership of the school board and the 
council must approve the article and, if the charter is otherwise 
silent as to the opportunity for voter approval of the article, 
provides for a voter petition process to call a referendum on the 
article; 
8. 
Addresses 
conflicting 
prov~s~ons 
regarding 
administration and oversight of the Fund for Efficient Delivery 
of Educational Services. 
The Department of Education is directed 
to develop a proposed plan for administration and management of 
the fund, 
and the Joint Standing Committee on Education and 
Cultural Affairs is authorized to report out a bill to the First 
Regular Session of the 122nd Legislature; and 
9. 
Clarifies one change to the criteria to be used in 
determining the adjustment for isolated small schools in fiscal 
year 2005-06 and directs the Commissioner of Education to develop 
provisionally adopted rules on the adjustment for isolated small 
schools and submit those rules to the Second Regular Session of 
the 122nd Legislature. 
Part E changes the Maine Residents Property Tax Program, 
also known as the circuit breaker program, by eliminating income 
eligibility requirements, raising the maximum benefit from $1,000 
to $2,000, 
extending the application period through May 
31st 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
annually and establishing the maximum property taxes and rent 
constituting property taxes that may be considered in calculating 
the benefit. 
Part F increases the homestead property tax exemption to 
$13,000 for all homesteads. 
Part G sets the ceiling on the Local Government Fund under 
state-municipal revenue sharing at $100,000,000 in fiscal year 
2005-06 and provides for future indexing of the ceiling according 
to the Consumer Price Index. 
This change increases the portion 
of 
state-municipal 
revenue 
sharing 
funds 
transferred to 
the 
Disproportionate Tax Burden Fund, also referred to as Revenue 
Sharing 2, which provides greater payments to municipalities with 
tax rates exceeding 10 mills. 
Part H establishes the goal of reducing the total state and 
local tax burden to the middle 1/3 of all states by 2015. 
It 
also requires the State Planning Office to monitor and report on 
the progress of state and local government in meeting this goal 
and to collect and analyze data relating to state and local 
spending and revenues. 
Part I adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 01117/05 ~ae. 
LD 1 
LR 0328(02) 
An Act to Increase the State Share of Education Costs, Reduce Property Taxes and Reduce Government 
Spending at All Levels 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Joint Select Committee on Property Tax Reform 
Fiscal Note Required: Yes 
Majority Report 
Fiscal Note 
Projections 
Projections 
2005-06 
2006-07 
2007-08 
2008-09 
Net Cost (Savings) 
General Fund 
$ 29,678,528 
$ 16,751,144 $ 32,806,416 
$ 41,288,094 
Appropriations/Allocations 
General Fund 
$ 13,806,717 
$ 
585,039 
$ 15,079,495 
$ 21,430,377 
Other Special Revenue Funds 
$ 
6,962,382 
$ 
6,194,152 
$ 14,552,541 
$ 20,730,6 
Revenue 
General Fund 
$ (15,871,811) $ (16,166,105) $ (17,726,921) $ (19,857,717) 
Other Special Revenue Funds 
$ 
(870,605) $ 
(886,749) $ 
(972,363) $ (1,089,242) 
Fiscal Detail and Notes 
General Fund Summary - Costs (Savings) 
2005-06 
2006-07 
2007-08 
2008-09 
Additional amount needed to fund EPS in bill above 
Governor's Current Services Budget Proposal for the 
2006-2007 Bienniuml 
$6,463,417 
$ (5,963,417) $ 
$ 
Additional amount needed to fund Efficient Delivery 
of Educational Services Fund 2 
$ 
6,962,382 
$ 
6,194,152 
$ 14,552,541 
$ 20,730,626 
Homestead 50% @ $13,000 3 
$ 
53,872 
$ 
162,789 
$ 
330,135 
$ 
497,481 
Homestead - Mandate Reimbursement 
$ 
115,000 
$ 
$ 
$ 
Circuit Breaker Expansion 
$ 16,594,129 
$ 16,866,209 
$ 18,443,539 
$ 20,590,019 
Individual Income Tax 5 
$ 
(722,318) $ 
(700,104) $ 
(716,618) $ 
(732,302) 
State Planning Office 
$ 
50,000 
$ 
50,000 
$ 
50,000 
$ 
50,000 
Maine Revenue Services Administrative Costs 
$ 
162,046 
$ 
141,515 
$ 
146,819 
$ 
152,270 
Net General Fund Cost (Savings) 
$ 29,678,528 
$ 16,751,144 
$ 32,806,416 
$ 41,288,Of 
Net Funding Contained in Budget 
$ 
4,481,802 
$ 
4,445,590 
$ 
4,423,817 
$ 
4,416,359 
Additional Amount Required 
$ 25,196,726 
$ 12,305,554 
$ 28,382,599 
$ 36,871,735 
LR0328(2) - Fiscal Note - Page 1 of 2 
Additional General Fund amount required is a function of funding EPS model as in LD 1 vs. what is included in the 
Governor's Proposed Current Services Budget for the 2006-2007 Biennium. It does not reflect the impact ofIB 2003, 
Chapter 2, approved by the voters on June 8, 2004, which becomes operative in January of 2005, barring legislative 
action. 
The General Fund appropriations required to fund the State's share of the cost of Essential Programs and Services for 
FY 2005-06 and FY 2006-07, as proposed in this legislation, is included in the Governor's Proposed Current Services 
Budget for the 2006-2007 Biennium. Additional General Fund appropriations will be required to establish the Fund for 
the Efficient Delivery of Educational Services as a dedicated fund within the Department of Education which was 
approved by the voter's in IB 2003, c. 2. However, this bill differs from IB 2003, c. 2 in that it proposes to phase-in the 
requirement that 2% of the annual state appropriation for education be dedicated to providing incentive-based resources 
to those local school units or municipalities that develop sustainable cost savings in the delivery of educational services. 
It also allows for the funds to be used for transition adjustments in fiscal year 2005-06 only in order to minimize the 
adverse fiscal impact that may be experienced by some municipalities as a result of the phase-in ofthe Essential 
Programs and Services model. 
Appropriations required to fund the Homestead exemption at $13,000 with 50% reimbursement from the State to the 
Municipalities. 
Revenue loss from the expansion of the Maine Residents Property Tax program (Circuit Breaker). 
Increase in individual income tax revenue as a result of changes in the deductability of local property taxes. 
Other Impacts 
This bill establishes a General Fund appropriations limitation and limitations on county and municipal tax assessments. 
It also changes the authorized uses of the Maine Budget Stabilization Fund, the statutory cap on the balance of the fund 
and the methodology for determining transfers into the fund. 
The bill increases the percentage of a loan for learning space upgrades from the School Revolving Renovation Fund that 
may be forgiven. Increasing the percentage of a loan that may be forgiven may result in less money being available 
from the Fund for future projects. The impact to the Fund cannot be determined at this time. 
Local Government Fund Impact 
2005-06 
2006-07 
2007-08 
2008-09 
Revenue loss - Circuit Breaker expansion 
$ 
(910,226) $ 
(925,151) $ (1,011,671) $ (1,129,410) 
Revenue increase - Individual Income Tax 
$ 
39,621 
$ 
38,402 
$ 
39,308 
$ 
40,168 
Net Change 
$ 
(870,605) $ 
(886,749) $ 
(972,363) $ (1,089,242) 
This fiscal estimate is based on the Governor's draft budget proposals as presented on January 7,2005 and may have to 
be revised based on final legislative actions. 
LR0328(2) - Fiscal Note - Page 2 of 2