An Act To Establish a New Method of Determining the State Budget
Maine Legislature, Session 122, LD 0292
Committee: Appropriations and Financial Affairs
Sponsors: JOY, CROSTHWAITE, GLYNN, HOTHAM
Amends: 5 MRSA §1665, 5 MRSA §1666, 5 MRSA §1666-A

Legislative Document 
No. 292 
H.P.217 
House of Representatives, January 18,2005 
An Act To Establish a New Method of Determining the State Budget 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Representative JOY of Crystal. 
77/~/h.~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: CROSTHWAITE of Ellsworth, GLYNN of South Portland, 
HOTHAM of Dixfield, McKENNEY of Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 5 MRSA §1665, sub-§I. as amended by PL 2003, c. 451, 
Pt. X, §9, is further amended to read: 
1. 
Expenditure 
and 
appropriation 
requirements. 
On 
or 
before September 1st of the eyeH-H~mgeFeQ odd-numbered years, all 
departments 
and 
other 
agencies 
of 
the 
State 
Government 
and 
corporations and associations recelvlng 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. 
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 
ln 
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 SBa~~ 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. 
Sec. 2. 5 MRSA §1665. sub-§7. as repealed and replaced by PL 
1999, c. 127, Pt. A, §6 and affected by §7, is amended to read: 
7. 
General Fund and Highway Fund revenue and expenditure 
forecasts. 
By September 30th of each eyeH-H~mgeFeQ odd-numbered 
year, the State Budget Officer shall prepare and deliver a report 
to the Governor, the Legislature and the joint standing committee 
of the Legislature having jurisdiction over appropriations and 
financial 
affairs 
containing 
a 
forecast 
of 
revenue 
and 
expenditures 
for 
the 
following 
biennium. 
The 
forecast 
must 
assume the continuation of current laws and include reasonable 
and predictable estimates of growth in revenues and expenditures 
based 
on national 
and 
local 
trends 
and 
program operations. 
General 
Fund and Highway 
Fund 
revenue must be 
forecasted by 
income 
source 
as 
provided 
in 
chapter 
151-B. 
Expenditure 
forecasts for the General Fund and the Highway Fund must be 
-
.. 
L· 
forecasted on the basis of current law and assumed inflation 
variables related to program operations. 
The forecast for the 
General Fund and the Highway Fund must be presented in a budget 
fund 
flow statement and 
a 
comparative statement showing each 
income source for revenue projections and expenditure estimates 
for each major program category. 
Sec. 3. 5 MRSA §1666, first" as amended by PL 1993, c. 707, 
Pt. R, §1, is further amended to read: 
The Governor-elect or the Governor, with the assistance of 
the State Budget Officer, shall review the budget estimates, 
altering, revising, increasing or decreasing the items of the 
estimates as may be determined necessary in view of the needs of 
the var ious departments and agencies and the total anticipated 
income of the State Government during the ensuing biennium. 
This 
review must cover all budgets regardless of source of funds, 
including, but not limited to, budgets related to the Highway 
Fund, the Federal Revenue Sharing Fund and other special revenue 
funds. 
The 
State 
Budget 
Officer, 
at 
the 
direction of 
the 
Governor-elect or the GovernorL shall then prepare a state budget 
document in the form required by law. 
The Governor-elect or the 
Governor is fully responsible for all budgetary recommendations 
made to the Legislature. 
The Governor shall transmit the budget 
document to the Legislature not later than the Friday following 
the first Monday in Jaa~aFy December of the fiFst second regular 
legislative 
session. 
At 
that 
time 
the 
Governor 
shall 
also 
transmit any biennial budget bills that authorize appropriations 
or allocations in the upcoming biennium that the Governor may 
wish to propose as well as any emergency bills that authorize 
additional appropriations or allocations in the current fiscal 
year that the Governor may wish to propose. 
A Governor-elect 
elected to 
a first term of office shall transmit the budget 
document to the Legislature not later than the Friday following 
the first Monday in ~eBF~aFy January of the fiFst second regular 
legislative session. 
At that time the Governor-elect shall also 
transmit any biennial budget bills that authorize appropriations 
or allocations in the upcoming biennium that the Governor may 
wish to propose as well as any emergency bills that authorize 
additional appropriations or allocations in the current fiscal 
year that the Governor may wish to propose. 
Sec. 4. 5 MRSA §1666-A. as enacted by PL 1995, c. 113, §L is 
amended to read: 
§1666-A. Enactment of budget 
The 
Legislature shall 
review 
a 
biennial or 
supplemental 
budget submitted to it in accordance with this chapter and enact 
a budget no later than 30 days prior to the date of adjournment 
prescribed in Title 3, section 2, except that, during the first 
year in office of a Governor-elect, the Legislature shall enact a 
budget no later than the first Friday in Jane ~ril. 
Sec. 5. Application. 
For the fiscal year beginning on July L 
2007, 
the 
budget 
of 
the State must 
provide 
for 
a 
complete 
financial plan for one fiscal year. 
Those sections of this Act 
that amend the Maine Revised Statutes, Title 5, sections 1665, 
1666 and 1666-A take effect July 1, 2008. 
SUMMARY 
This bill shifts the start of the fiscal biennium for the 
state budget from the first regular session of the Legislature to 
the second regular session of the Legislature, beginning for the 
fiscal year that begins on July 1, 2008. 
This bill also provides 
that the state budget beginning on July L 
2007 is a one-year 
budget. 
' ...