An Act To Increase the State Share of Education Costs, Reduce Property Taxes and Reduce Government Spending at All Levels Amend the amendment by striking out all of the first paragraph after the title (page 1, lines 23 to 25 in amendment) and all of Parts A, B, C and D and inserting in their place the following: I Amend the bill by striking out everything after the title and before the summary and inserting in its place the following: . Be it enacted by the People of the State of Maine as follows: PART A Sec. A·l. 5 MRSA §1507. last~, as enacted by PL 1997, c. 24, Pt. C, §2, is repealed. Sec. A-2. 5 MRSA §1511, as amended by PL 2003, c. 451, Pt. X, §l, is repealed. Sec. A·3. 5 MRSA §1513, as amended by PL 2003, c. 451, Pt. X, §§2 to 4, is repealed. Sec. A-4. 5 MRSA §1517, as amended by PL 2003, c. 451, Pt. X, §6, is repealed. Sec. A-5. 5 MRSA §§1521 and 1522 are enacted to read: §1521. Maine Budget Stabili~ation Fund Page l-LR0328(29) SENATE AMENDMENT
Maine Legislature, Session 122, LD 0001
Committee Amendment CA_A-SA_G_S8 (Senate)
Amends: 5 MRSA §1507, 5 MRSA §1511, 5 MRSA §1513, 5 MRSA §1517, 5 MRSA §1664, 5 MRSA §1665, 36 MRSA §3321

SENATE AMENDMENT ·6 .. to 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 
amendment 
by 
striking out all 
of 
the first 
paragraph after the title (page 1, lines 23 to 25 in amendment) 
and all of Parts A, 
B, C and D and inserting in their place the 
following: 
I Amend the bill by striking out everything after the title 
and before the summary and inserting in its place the following: 
. Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A·l. 5 MRSA §1507. last~, as enacted by PL 1997, c. 24, 
Pt. C, §2, is repealed. 
Sec. A-2. 5 MRSA §1511, as amended by PL 2003, c. 451, Pt. X, 
§l, is repealed. 
Sec. A·3. 5 MRSA §1513, as amended by PL 2003, c. 451, Pt. X, 
§§2 to 4, is repealed. 
Sec. A-4. 5 MRSA §1517, as amended by PL 2003, c. 451, Pt. X, 
§6, is repealed. 
Sec. A-5. 5 MRSA §§1521 and 1522 are enacted to read: 
§1521. 
Maine Budget Stabili~ation Fund 
Page l-LR0328(29) 
SENATE AMENDMENT 
SENATE AMENDMENT ·G· to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
1. 
Establishment. 
The 
Maine 
Budget Stabilization Fund, 
referred to in this section as "the fund," is established and 
must be administered for the purposes identified in this section. 
2. 
Transfers 
to 
fund: 
limits. 
The 
fund 
may 
receive 
transfers by the State Controller of unappropriated surplus at 
the close of a fiscal year as provided in section 1995 and any 
other funds identified by law. 
The fund may not exceed 10°1> of 
the total General 
Fund 
revenues 
received in the 
immediately 
preceding fiscal 
year 
and 
may 
not 
lapse, 
but 
remains 
in 
a 
continuing carrying account to carry out the purposes of this 
section. 
The limit at the close of a fiscal year is based on the 
total General Fund revenues received in the fiscal year being 
closed. 
3. 
Use of fund. 
Th~ Legislature may authorize 
transfer~ 
ap9ropriations and allocations from the fund only to fund the 
costs of State Government up to the expenditure limit calculated 
under section 1994 in years when state revenues are less than tiL~ 
amQunt necessary to finance the level of expenditure permitted 
under section 1994. 
4. 
Investment of fUJ;lds: proceeds. 
The money in the fund 
may be invested as provided by law, with the earnings credited to 
the fund. 
At the close of every month during which the fund is 
at the 
10% 
limitation described in subsection 
2, 
the State 
CQntrQller shall transfer the excess to the Tax Relief Reserve 
Fund established under section 1995. 
§1522. 
Maine Highway Budget Stabilization Fund 
1. 
Establishment. 
The Maine Highway Budget Stabilization 
Fund, referred to in this section as "the fund," is established 
and must be administered for the purposes identified in this 
section. 
2. 
Transfers 
to 
fund: 
limits. 
The 
fund 
may 
receive 
8 
transfers by the State Controller of unallocated Highway Fund 
surplus at the close of 2 _~al ye2r Q§ provided in section 1996 
and any other funds identified by law. 
The fund may not exceed 
10% 
of 
the 
total 
Highway 
Fund 
revenues 
received 
in 
the 
immediately preceding fiscal year and may not lapse, but remains 
in a continuing carrying account to carry out the purposes of 
this section. 
The limit at the close of a fiscal year is based 
on the total Highway Fund revenues received in the fiscal year 
being closed. 
3. 
Use of fund. 
The Legislature may author.,ize transfers, 
appropriations and allocations from the fund only to fund the 
costs of the Highway Fund budget up to the expenditure limit 
SENATE AMENDMENT 
SENATE AMENDMENT ,,8 to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
calculated under section 1994 in years when Highway Fund revenues 
are less than the 
amount necessary to finance the level of 
expenditures permitted under section 1994. 
4. 
Investment of funds: trrO-ceeds. 
The money in the fund 
may be invested as provided by law with the earnings credited to 
the fund. 
At the close of every month during whi~h the fund is 
at the 
10% 
limitation described in subsection 2, 
the State 
~ontroller shall transfer the excess to the Highway Fund Reserve 
Fund established under section 1996. 
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 I s 
budget 
submission 
to 
the 
Legislature may not exceed the General Fund appropriation of the 
previous fiscal year multiplied by one plus the aVeFaliJe--Fea* 
~eFseRa*--~~€~-~~~--F~~r--a6--~e~~~e~--~~--&&G&~&--*ee§T 
6~esee~~eR--~,--p*~s-~-aveFaliJe-~~~~-~R~*atieR-~~~---~eF 
~blF~eses-«--1;ai-&-pa-£~-i"~"7--'!a-v-e-~-.fe£e€a6.£.eQ--bnf-~.i-on--Fate!.! 
meaRs-~~~r~-~eFeeas1;ea-£~-~-1;ae-~~~-~~~-*RaeH 
blRQeF*y~RliJ--tae--FeveR~e--~Fejeet~eRS--Qeve*e~eQ--ey--tae--ReveR~e 
~e~eea6tiRliJ---~emm~ttee---~~~SblaRt---te---eaapte~---*9*-8T----~ai6 
a~~Fe~~~at~eR-~~~~~~~-may-~~~-~~y-~-.£.ae-~--eE 
tae--aQQ~tieRa*--eests--eF--tae~-*e6t--EeaeFa*--FeveR~e--~Fem--tae 
~e**ew~RliJ-eK€ep.£.4eBa~-£~~~~~-~~~~-~&GeF-~~&GeG-ReW 
Eeee~a*-~~r-~e£6es--i&-~~~--£e¥eBble6-~r-~~--FeveR~e 
6e~~ee6t--~~~~--~~~~~~~--eF---r~~~--~~---Fe~~iFe 
iRe~eaSeQ-~~~-S~eRQ~RliJt-~~-eFeeF6-~--eeeFees-~~-Fe~~iFe 
aQe~~~eRa*-£.£.a.£.e-~~~~~-eem~ly-wi.£.a-~~~~~~F-eeeFeest 
aRe-6~QQeB-~-~~~~~-i&eFea&e&-4R-~~~-~~~&&~~-6tate 
seFviees-~~-~~-Ret--~--i"~~--ef--~~~~v&-£~-taat 
~ReFeasee-~~~~~~it~-e£--~~-~~~£,---~ae-~~--may 
eesi~Rate--eK€ep.£.4eBa~--£~~~~~~-~~--~re---&e~--eH~*ieit*y 
eefiRee-4B-~~~~~~-~~&-meet-.£.ae-~~~~--&h~&-~aFaliJFa~aT 
~eF-p~~pe6e6-*-~-hi~~~-ap&r-'.!.e-lf€e-~&~R-aJ:.-ei-Fe~&~a&ee&~-meaRs 
aR-blRfeFeSeeR-€eB44.£.4eB-~-~~~~~-~~-&he-GeveF»eF-aRe 
tae--~~~~--ha¥e---J:.~&&J:.e--~---»e--~~~~----EHee~~~eRa± 
eiFeblmstaRee6-Qe-~~~-&e-BeW-~~~-~--~~F~-eHpaR6~eR6 
taa~-liJe-~~~4~4~~~~~r~~rb&-a&G-e~eFatieR population 
adjustment factor plus the. inflation adjustment factor as those 
terms 
are 
defined 
in 
section 
1992 t 
subsections 
and 
t 
respectively. 
Sec. A·7. 5 MRSA §1665, sub-§l, 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 even-numbered years, all departments 
SENATE AMENDMENT 
SENATE AMENDMENT ,~, to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
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 aveJ?a4iJe--r-&a-l---pe-1-6-ena-l--,i,aeeme 
4iJJ?9w~h--~~~r--~~--~~~€~--e~--&&~&-~i~,--~~¥~~~e--J?ea± 
peJ?s9aa±-~~~~~~-Fa~e~-mea££-~~-~~~~-£e£-~~~r~~-±g 
ea±eRaaJ?-~~r-e£a4£4iJ-~~~-~£€-~&&-~~--ealeRaaF-~--~er 
whieh-Qa~a-4~-~~~~€7-~-~~~~~-~-~a-peF&9Ral-,i,aeeme 
iR-~~~-S~ase-~~--a-~~~~--Y&&~r-~£-~imat~-by-~~-Yai~ea 
S~a~es-~~~~ffieR~-~-~F~r-B~J?ea~-~-~~-~~l-Y&~&r-±ess 
she-~€~€€£~-~-~-&&e-Gea6~meF-P~4€€-~~-~~--&&~&-ea±eaaaJ? 
yea~T--~--p~Fpese6-~--~h,i,6-~~~~-~Gea6~eF-~~~-±aaeH~ 
has-~~~-m&~a~~-a6-~~-~~~-~&r-~€€~4~£-~,--&~&&&&&~a-± 
inflation adjustment factor as defined in section 1992. 
The 
expenditure estimates sha±± 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. A-S. 5 MRSA c.165 is enacted to read: 
CHAPTER 165 
THE TAXPAYERS' BILL OF RIGHTS 
§1991. 
E~diture and revenue reqyirements; construction of 
chapter 
The 
following 
prov1s1ons 
of 
this 
section 
apply, 
notwithstanding any other provision of law. 
1. 
Expenditure 
limitations. 
Annual 
state 
and 
local 
expenditures may not exceed the limits provided in this chapter. 
2. 
Revenue increases. 
An increase in revenue may only be 
adopted as provided in section 1993. 
3. 
Construction. 
It is the intent of the Legislature that 
this chapter be interpreted liberally to restrain excess growth 
of state and local government. 
SENATE AMENDMENT 
\ .. ' 
SENATE AMENDMENT ·G· to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
§1992. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Election officer. 
"Election officer" means: 
A. 
In 
a 
statewide, 
county or municipal election, 
the 
municipal registrar of voters; or 
B. 
In an election by the voters of a local district that is 
not a 
municip~.l-J;;_he official with responsibility for 
managing the list of vQters of the local district. 
2. 
Increase in revenue. 
"Increase in revenue" means any 
-legislation, local ordinance or tax levy that causes a net gain 
in revenue and: 
A. 
Enacts a new tax or fee; 
B. 
Increases the rate or expands the base of an existing 
tax or fee; 
C. 
Reduces 
benefits 
or eligibility under 
the 
Business 
~~ent Tqx 
RefynQ __ PIogram 
establ~shed in 
Titl~~ 
~bapte~ 21S w~tbQut prQviding the same level Of benefits anq 
eligibility under a comparable program or without providing 
a 
100\ property tax exemption for property eligible for 
reimbursement under Title 36, chapter 915; 
D. 
Repeals or reduces any tax exemption, credit or refund; 
or 
E. 
Extends an expiring tax or fee increase. 
L 
Inflation 
adjustment 
factor. 
"Inflation 
adjustment 
factor" means the increase in the Consumer Pr ice Index for the 
most recently available calendar year as calculated by the United 
States Department of Labor, Bureau of Labor Statistics. 
4. 
Local district. 
"Local district" means 
any 
county, 
municipality or other 
substate governmental entity with 
th~ 
authority to collect revenue. 
5. 
Population adjustment factor. 
"Population 
a~tmenJ;, 
factor" means the increase or decrease in population for the 
preceding 
calendar 
year 
over 
the 
prior 
calendar 
year 
as 
determined annually by the Executive Department, State Planning 
Office statewide 
and 
for 
each municipality based on 
federal 
census estimates. 
SENATE AMENDMENT 
SENATE AMENDMENT .G" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
6. 
Ouasi-governmental~ncy. 
"Quasi-governmental agency" 
means 
any 
separate 
legal 
entity 
for 
which 
the 
State 
is 
financially accountable and that is included in the financial 
statements of the State for fiI;lancial reporting purposes under 
guidelines 
established 
by 
generally 
accepted 
accounting 
principles mandated by a governmental accounting standards board. 
7. Revenue. 
"Revenue" means taxes and fees collected by the 
State, a quasi-governmental agency or a local district pursuant 
to the statutes of the State, including those collected under 
Title 36, Part 2. 
It includes money received from the sale of 
goods and services only to the extent that the receipts exceed 
the cost of providing the goods or services. 
§1993. 
Approval of revenue increases 
1. 
Approval of incre9ses. 
The following forms of approval 
are required to agQpt an iI!.~Jease in revenue: 
at 
The measure must be approved :by a vote Qf 213 of all the 
IDQIDQeU of each 
HQJ.!.~e._Ql 
t.h~ 
t.~gislature or 
of the 
memb~r~ Qt the 
legis~~~ive bogy of a 
qMa~i-municipal agency 
Qr a local gistrict; and 
B. 
Except as provided in subsection 2, the meaSMre must be 
approved by a majority of the voters in the jurisdiction as 
gescribed in subsection 3. 
2. 
Exceptions. 
Voter 
approval 
under 
subsection 
1, 
paragraph B is nQt reqMired if: 
A. 
Annual 
state or 
local 
revenue is less than annual 
payments 
on general 
obligation bongs, 
reqMired 
payments 
related to pensions and final court judgments; 
B. 
The measure is an emergency tax and the provisions of 
sectiQn 1999 are followed; or 
C. 
The increase in revenue applies to a quasi-governmental 
agency that dQes not have a body of voters. 
FQr the purposes of this subsection, "emergency" does not include 
~cQnomic cQngitions, 
revenue shortfalls Qr district salary or 
fringe benefits increases. 
~~proval by voters; eme~ency approval. 
The question of 
whether tQ adopt legislation to impose an increase in revenue of 
the State must be submitted to the voters for approval at the 
next general election as defined in Title 2l-A, section 1. 
If 
SENATE AMENDMENT 
SENATE AMENDMENT .(i) to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
the Legislature determines by a 
vote that legislation to 
increase taxes or fees should take effect sooner than the next 
general election, the Legislature may provide for submission of 
the question to the voter~ at any regular or special election as 
defined in Title 2l-A, section 1. 
The question of whether to 
adopt 
an 
increase 
in 
reyenu~-lli. a 
local district 
mus~ 
submitted to the voters of the district at the next general or 
special districtwide election. 
4. 
Reve~-y~_~tim~s-" 
A 
measur~ submitted to the voters 
under this section must include an estimate of the amount to be 
raised by the measure for 
the first 4 
fiscal years of its 
implementation. 
5. 
Notice. 
At least_JO days before ap election required 
~er this chapter, th~l~~~tic.er sh~ll mail at the least 
Cg,st 
~ titl.tfl 
Mt.i.~.Q.L_ ~et of 
nQtices 
adgx:essed 
to 
"All 
Registered Voters" at each address of every active registered 
voter, 
Notices must include the following information and may 
not include any additional information: 
J:.. 
The election date, hours, ballot title and text and 
local election office address and telephone number; 
B. 
For each proposed revenue increase, the estimated or 
actual total of fiscal year spending for the current year 
and each of the past 4 years and the overall percentage and 
dollar change; 
~C,-,._-,F"-o""-"-r---,t ... 
h...,e"--",-f-",i.t.r-,,sw.t,--,f,,-,u,,,-l=..=.l--=f,-,,i,-,,s...,c,,-,a,",l=--~y-"e",a~r,---,o!o<."'-f---",-e ach p r OpQ.§.e d r eve n ue 
increase, estimates of the maximum dollar amount of each 
increase and of fiscal year spending without the increase; 
D. 
Two summaries, up to 500 words each, one in support of 
and one in opposition to each proposal, of written comments 
filed with the election officer by 
days 
before the 
election. 
A summary may not mention names of persons or 
private groups, 
nor 
any 
endorsements 
of 
or 
resolutions 
against 
the 
proposal. 
Measure 
representatives 
following 
these rules shall write this summary for their proposal. 
The election officer shall maintain and accurately summarize 
all other relevant written comments. 
Except by later voter approval, if an increase in revenue exceeds 
any estimate prepared under paragraph C for the same fiscal year, 
the tax increase is thereafter reduced up to 
IQO~o in proportion 
of the combined dollar excess and the combined excess revenue 
refunded in the next fiscal year. 
Ballot questions for revenue 
increases must begin: 
"Shall 
(specify dist.rict) 
revenues 
be 
SENATE AMENDMENT 
SENATE AMENDMENT ,(J" to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
increased (amount of first or, if phased in, full fiscal year 
dollar increase) annually ... ?" 
6. 
Costs. 
The State shall reimburse municipalities for the 
following costs: 
A. 
The 
costs 
of 
any 
election under 
this 
section 
and 
providing the notice required under subsection 5 if the 
election provides for a state tax increase; and 
B. 
The cost of one local district election per year under 
this 
section if 
thQ.t~lection occurs 
during 
a 
regular 
election. 
§1994. 
Expenditure 1imitations 
l.. 
State e&eMll.y..L~L.J .. .imUAt.ion. 
B~in.n~ng with th§ fix:st 
fiscal yea.r that begins 
-<2 . .u,er this section takes effect. ~ 
maximum annual percentage change in state fiscal year spending in 
the categories specified in this subsection equals the inflation 
£.Qjustment factor plus the population adjustment factor and any 
increases attributable to measures approved under section 1993. 
This limitation must be calculated separately for the following 
categories: 
A. 
General Fund: 
B. 
Highway Fund; 
C, 
Quasi-governmental agencies and Qther Special Revenue 
funds, 
for which separate individual limitations must be 
2 
~.lj,eQ.. 
[!:It 
gU~.sj~:::g..QJte..r..n~.n.t.~l 
a.g~~ whose 
primary 
purpose is proViding educational programs, 
the limHation 
must 
be 
calculated 
by 
substituting 
fQr 
the 
population 
adjustment factor 
a 
factor based on 
changes 
in student 
enrollment. 
2. 
Local expenditure limitatiQ.n. 
Beginning with the· first 
fiscal year that begins after the effective date of this section, 
the maximum annual percentage change in fiscal year spending for 
a local district that i~ school administrative unit equals the 
inflation adjustment 
factor 
plus 
the 
change 
in its student 
enrollment and any increases attributable to measures approved 
under section 1993. 
The 
maximum annual percentage change in 
fiscal year spending for a local district that is not a school 
administrative unit for a fiscal year may not exceed: 
A. 
The amount of revenue for the local district for the 
previous fiscal year adjusted by the change in the assessed 
value of taxable real and personal property in the local 
SENATE AMENDMENT 
.' 
J 
:-: 
SENATE AMENDMENT ,G, to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
district. or the amount of revenue for the local district 
for 
the previous fiscal year adjusted by 
the inflation 
adjustment factor 
p.lus 
the population adjustment factor, 
whichever is lower; plus 
B. 
Any increases attributable to measures approved under 
section 1993. 
3. 
Exceptions. 
The 
following 
may 
not 
be 
counted 
in 
calculating expenditure limitations under this section: 
A. 
Amounts returned to taxpayers as refunds of amounts 
exceeding the expenditure limitation in a prior year; 
B. 
Amounts received from the Federal Government: 
Co 
Amounts 
collected 
on 
behalf 
of 
another 
level 
of 
government: 
D. 
Pension 
c~ibutions by employees 
and pension 
fund 
earnings: 
E. 
Pension 
and 
disability 
payments 
made 
to 
former 
government employees; 
F. 
AIDQunts received as grants, gifts or donations that must 
be spent for purpo§e§ specifieg by the donor: 
G. 
Amounts paid pursuant to a court award: or 
H. 
Reserve transfers or expenditures. 
~ 
Exceeding exPenditure 
limitation. 
If 
revenues 
are 
projected to exceed the expenditure limitations in this section, 
the amoynt 2t r~yenues exceeding tbe e~enditure l~mitQt~QnB may 
be spent if approyed in the same manner as required for a revenue 
increase under section 1993. 
§1995. 
Transfers and refund of unAPpropriated General Fund 
suq»lus 
1. 
Fund created. 
The Tax Relief Reserve Fund, referred to 
in this section as "the fund," is created for the purposes set 
forth in this chapter. 
The fund may not lapse, but remains in a 
continuing carrying account to carry out the purposes of this 
section. 
2. 
Tran~fer. 
At the_ close of each fiscal year, the State 
Controller 
shall 
identify 
the 
amount 
of 
General 
Fund 
unappropriated surplus and make the following transfers: 
SENATE AMENDMENT 
SENATE AMENDMENT ,e:, to COMMITTEE AMENDMENT "A" to H. P. 6, L. D . 1 
A. 
Eighty percent of the unappropriated surplus must be 
transferred to the fund; and 
B. 
Twenty percent of the unappropriated surplus must be 
transferred 
to 
the 
Maine 
Budget 
Stabilization 
Fund 
established in section 1521. 
3. 
Notification. 
By 
September 15th 
~nnua11y, the State 
Controller 
shall 
notify 
the 
Legislature 
and 
the 
State 
Tax 
Assessor of the amount in the fund as a result of the transfers 
required by SUbsection 2. 
4. 
Refund through legislative action. 
If the amount in the 
fund eXceegs $25,QOO,000, the Legislature shall, by October 15th, 
~nAct 
l~gisIAt~Qn tQ 
provide for 
the refund 
tQ 
taxpayers of 
amounts in the fund. 
RefundS may take the form only of temporary 
or permanent broad-based tax credits, rebates or rate reductions. 
5. 
Refund 
in~se of 
legislative 
inaction. 
If 
the 
Legislature does not enact legislation by October 15th to provide 
refunds 
pursuant to 
subsection 4. 
then the State Controller 
shall« by October 30th, notify the State Tax Assessor of the 
.mnount in the fund. 
The State Tax Assessor shall calculate a 
Qne-time bQnus persQnal 
ex~mption refund. 
The 
amQunt of the 
Wtrsonal 
exemption refund must be calculated by dividing the 
amoynt in the fund identified by the State Controller under 
sYQliection 3 
QY 
the nymper 
of~~al exemptions claimed on 
income tax returns filed for tax years beginning in the previous 
calendar year and rounded down to the nearest $5 increment. 
The 
State Tax Assessor shall issue a refund by November 30th to a 
taxpayer who filed an income tax return by April 15th of the same 
calendar year· based on the number of personal exemptions claimed 
on the taxpayer's return without regard to the taxpayer's tax 
liability for the year. 
§1996. 
Transfers and refund of unallocated Highway Fund surplus 
1. 
Fund created. 
The Highway Fund Reserve Fund, referred 
to in this section as "the fund," is created for the purposes set 
forth in this chapter. 
2. 
Transfer. 
At the close of each fiscal year, the State 
Controller shall identify the amount of Highway Fund unallocated 
surplus and make the following transfers: 
A. 
Eighty percent 
of 
the 
unallocated 
surplus 
must 
bQ 
transferred to the fund; and 
Page lO-LR0328(29) 
SENATE AMENDMENT 
SENATE AMENDMENT G to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
B. 
Twenty percent 
of 
the 
unallocated 
surplus 
must 
be 
transferred to the Maine Highway Budget Stabilization Fund 
established in section 1522. 
3. 
Notification. 
By~tember 15th annually, the State 
Controller shall nQtify the Legislature of the amount in the fund 
as a result of the transfers required by subsection 2. 
4. 
Refund through legislative action. 
If the amount in the 
fund exceeds 10'l-o of Highway Fund expenditures for the previous 
fiscal year. the State Tax Ass~sor shall calculate, based on the 
.amount in the fund, 
a proportional reduction in the taxes on 
motor 
fuels 
under Part 
to 
become effective the following 
January 1st and remain in effect for one calendar year. 
§1997. 
Revenues of guasi=9overpmental agencies and Other Special 
Revenue funds accounts 
By September 15th annually, each quasi-:goyernmental agency 
or state agency that manages 
an Other Special Reyenue 
funds 
~cQYnt shall 
submit 
gn 
anngal 
report 
to 
toe 
Legislature 
identifying revenues received in the preceding fiscal year that 
exceed the expenditure limitation established in section 1994 and 
any 
other 
uncommitted 
revenues 
received during 
the 
previous 
fiscal 
year 
and 
proposing 
a 
plan for 
refunding the 
amount 
identified that 
exceeds 
10% 
of 
the 
previous 
fiscal 
year's 
expenditure. 
§l99S. 
Refund of excess local revenues 
If a local district receives revenues in a fiscal year in 
excess of the expenditure limitation under section 1994, 
the 
local district must use the amount of the unprotected excess to 
reduce the amount of property tax assessed in the succeeding 
year. 
For purposes of this section. "unprotected excess" means 
the amount in excess of an amQunt set aside in a reserve account 
for unanticipated continge~cies, which may not exceed 10% of the 
previous fiscal year's expenditure. 
§1999. 
Emergency taxes 
1. 
Emergency taxes permitted: conditions. 
The State or a 
Jocal district may impose emergency taxes only in accordance with 
this section: 
A. 
The tax must be approved for a specified time period by 
a 
2/3 
majority 
of 
the 
members 
of 
each 
House 
of 
the 
Legislature or by a 2/3 majority of the legislative body of 
a local district: 
Page ll-LR0328(29) 
SENATE AMENDMENT 
· 
j~ 
SENATE AMENDMENT G· to COMMITTEE AMENDMENT "A" to H. P. 6, L. D • 1 
B. 
Emergency tax revenue may be spent only after other 
available reserves are depleted and must be refunded 180 
days after the emergency ends if not spent on the emergency; 
and 
C. 
The tax must be submitted for approval by the voters at 
the next statewide or districtwide election. 
2. 
Absence of approval. 
If n~proved by the voters as 
provided in this section, 
an 
emergency tax expires 
days 
following the election. 
Indiyidual or class action lawsuits may be filed to enforce 
ili.s chapter and must be given the highest civil priority for 
resolutJ,Qn. 
S"Q~~Gs'Ul ~~.otHfs ere 
allowed 
cQsts 
and 
UAsQru.W.le 
AttQtn~y' s 
fees..<_ but a dj,strict is nQt unless a suit 
againGt it ~s ruled frivolQus. 
Reyenue collected. kept or spent 
in conflict with this chapter for 4 full fiscal years before a 
suit is filed must be refunded with 10°'0 annual simple interest 
from the initial conduct. 
Sec. A-9. 36 MRSA §3321, sub-§5 is enacted to read: 
5. 
Voter approval. 
Beginning on the July 1st following the 
~ffectiye qate of this sub~~~a change in the rate of excise 
tax resuUiJ),g frQm tlJ,e aqjustment requited in subsection J. 
may 
only take effect if approved by a majority of the voters at a 
regular or special election. 
Sec. A-tO. Maine Budget Stabilization Fund. 
The Maine Budget 
Stabilization Fund established in the Maine 
Revised Statutes, 
Title 5, section 1521 is the successor in every way to the Maine 
Budget Stabilization Fund established under Title 5, section 1513 
that is repealed in this Act. 
All funds in the Maine Budget 
Stabilization Fund established under Title 5, section 1513 are 
transferred to the Maine Budget Stabilization Fund established in 
Title 5, section 1521 on the effective date of this Act. 
Sec. A-H. Legislative intent; relationship to private and special 
laws. 
It is the intent of the Legislature that the provisions of 
this Act supersede any conflicting provisions of private and 
special law relating to the determination of revenue, fees and 
expenditures. 
Sec. A-t2. Legislative intent; relationship to county tax and budget 
laws. 
It is the intent of the Legislature that the provisions of 
this 
Act 
supersede 
any 
conflicting prov1s1ons 
of 
the 
Maine 
Revised 
Statutes, 
Title 
3D-A, 
chapter 
relating 
to 
the 
assessment of county taxes and county expenditures.' • 
SENATE AMENDMENT 
~.~ 
SENATE AMENDMENT (};, to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
Further amend the amendment by striking out all of Parts F, 
G, Hand 1. 
Further amend the amendment by inserting after Part I the 
following: 
'PART J 
Sec. 
J-l. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
Maine Revenue Services 
0002 
The 
following 
Initiative: 
Provides funds for 
related 
costs 
associated 
with 
Residents Property Tax 
Program, 
computer programming costs. 
one Tax Examiner position and 
the 
expansion 
of 
the 
Maine 
including one-time 
funds 
for 
GENERAL FUND 
POSITIONS -
LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
Further amend 
any 
nonconsecutive 
consecutively. 
the amendment by 
Part 
letter 
or 
SUMMARY 
2005-06 
1.000 
$52,529 
$109,517 
$162,046 
2006-07 
1.000 
$56,513 
$85,002 
$141, 515' 
relettering or renumbering 
section 
number 
to 
read 
This amendment strikes the emergency and Parts A to D and F 
to I. 
The amendment retains Part E of the majority report. 
The 
amendment also adds a new part that restrains the growth in state 
and local government by imposing expenditure limitations on state 
and local government 
and by requiring 
a 
procedure of voter 
approval of tax and fee increases. 
Under this amendment, growth in annual expenditures of the 
General Fund, the Highway Fund, quasi-governmental organizations, 
Other Special Revenue funds and local district governments are 
limited according to 
increases 
in population 
and 
inflation. 
Growth in budgets of school administrative units and state-level 
educational institutions is limited according to increases in 
inflation and student enrollment. 
For 
the General 
Fund 
and 
Highway 
Fund 
budgets, 
revenues 
exceeding 
the 
expenditure 
SENATE AMENDMENT 
~ .. fO. 
SENATE AMENDMENT "G to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
limitation must be distributed by directing 20% of that excess to 
a budget stabilization fund and 
80~o of that excess to a tax 
relief fund. 
The budget stabilization funds may be used only in 
years when revenues are not sufficient to fund the level of 
expenditure permitted by the growth limits. 
The tax relief funds 
must be used to provide tax relief through refunds proportional 
to individual 
income 
tax personal exemptions 
claimed in the 
previous tax year or 
a 
decrease in motor fuels taxes. 
For 
quasi-governmental agencies and state agencies that manage Other 
Special Revenue funds, the managers of those funds must report 
excess surpluses to the Legislature with a plan for refund of 
those revenues. 
Under 
this 
amendment, 
an 
possible only by a 2/3 vote of 
the legislative body of a local 
a quasi-governmental agency and 
jurisdiction, if applicable. 
increase 
in 
revenue 
would 
be 
each House of the Legislature or 
district or the governing body of 
the approval of the voters of the 
FISCAL NOTE REQUIRED 
(See attached) 
( 2, """'~ G. ~ 
cW0 
SPONSORED BY: 
(Senator R. NASS) 
COUNTY: 
York 
Page l4-LR0328(29) 
SENATE AMENDMENT 
Approved: 01119105 ~ac 
LDI 
LR0328(29) 
An Act to Increase the State Share of Education Costs, Reduce Property Taxes and Reduce 
Government Spending at All Levels 
Fiscal Note for Senate AmendmentG-to Committee Amendment "A" 
Sponsor: Sen. N ass 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
Net Cost (Savings) 
General Fund 
($13,044,353) 
$853,168 
($13,650,429) 
Appropriations/Allocations 
General Fund 
($13,529,671) 
($443,524) 
($14,932,676) 
Other Special Revenue Funds 
($6,962,382) 
($6,194,152) 
($14,552,541) 
Revenue 
General Fund 
($485,318) 
($1,296,692) 
($1,282,247) 
Other Special Revenue Funds 
($26,620) 
($71,126) 
($70,334) 
Fiscal Detail and Notes 
Projections 
2008-09 
($19,990,274) 
($21,278,107) 
($20,730,626) 
($1,287,833) 
($70,640) 
This amendment decreases the cost of the bill by $13,044,353 in fiscal year 2005-06 and increases the cost of the 
bill by $853,168 in fiscal year 2006-07. This amendment also replaces the spending and tax levy limitations with 
different spending and tax limitations. The limitations on state expenditures apply to all state funds, including the 
Highway Fund and various dedicated funds. General Fund reserve funds are also changed and a new Highway 
Budget Stabilization Fund is created. Revenues in excess of the limitations are reserved and processes are 
established to return these excess revenues to taxpayers. The Legislature may spend available excess revenue and 
increase revenue by certain voting requirements. The net impact of these limitations on state appropriations and 
allocations during the 2006-2007 biennium can not be determined at this time. 
LR0328(29) - Fiscal Note - Page 1 of 2 
Projections 
Projections 
General Fund Detail Cost/(Savings) 
2005-06 
2006-07 
2007-08 
2008-09 
GPA 
($6,463,417) 
$5,963,417 
$0 
$0 
Efficient Delivery of Educational Services 
($6,962,382) 
($6,194,152) 
($14,552,541) 
($20,730,626) 
State Planning - Net change 
($50,000) 
($50,000) 
($50,000) 
($50,000) 
Maine Revenue Services - Net Change 
$0 
$0 
$0 
$0 
Homestead - Net change 
($53,872) 
($162,789) 
($330,135) 
($497,481) 
Circuit Breaker - Net change 
$0 
$838,328 
$812,204 
$807,037 
Individual Income Tax - Net change 
$485,318 
$458,364 
$470,043 
$480,796 
($13,044,353) 
$853,168 
($13,650,429) 
($19,990,274) 
LR0328(29) - Fiscal Note - Page 2 of 2