An Act To Impose Reasonable Limits on the Growth of State Government
Maine Legislature, Session 123, LD 1632
Committee Amendment CA_A_H613 (House)

COMMITTEE AMENDMENT ·14 " to H.P. 1140, L.D. 1632, Bill, "An Act To 
Impose Reasonable Limits on the Growth of State Government" 
Amend the bill by incorporating the attached fiscal note. 
SUMMARY 
This amendment incorporates a fiscal note. 
COMMITTEE AMENDMENT 
Approved: 06/15/07 Mac:.. 
Net Cost (Savings) 
General Fund 
Highway Fund 
Revenue 
General Fund 
Highway Fund 
LD 1632 
LR 627(02) 
An Act To Impose Reasonable Limits on the Growth of State Government 
Fiscal Note for Bill as Amended by Committee Amendment "II" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Undetermined Current Biennium Fiscal Impact - General Fund 
Undetermined Current Biennium Fiscal Impact - Highway Fund 
2007-08 
$0 
$0 
2008-09 
$5,685 
$5,064,721 
Projections 
2009-10 
$11,384 
$10,289,191 
Other Special Revenue Funds 
$0 
$0 
$0 
($5,685) 
($5,064,721 ) 
($99,594) 
($11,384) 
($10,289,191) 
($199,425) 
Fiscal Detail and Notes 
Projections 
2010-11 
$17,096 
$15,363,411 
($17,096) 
($15,363,411) 
($299,491 ) 
Based on current estimates of inflation and population change, the State spending limit is estimated to allow growth of 
approximately 2.8% from the prior fiscal year's expenditures in fiscal years 2007-08 and 2008-09. Based on the 
assumption that the spending limit uses fiscal year 2006-07 spending, which is assumed to equal appropriations and 
allocations, the General Fund spending limit is projected to be below projections of General Fund revenue. That 
excess General Fund revenue would remain in unappropriated surplus. For the Highway Fund, the spending limit 
based on current projections and fiscal year 2006-07 allocations, would be above projections of Highway Fund 
revenue in each year of the 2008-2009 biennium. The actual spending limitation for fiscal year 2007-08 will not be 
established until final expenditures for each of the funds is established. 
Based on the projected growth under current law of some of the General Fund major programs including General 
Purpose Aid for Local Schools, Teachers' Retirement and Medicaid/MaineCare, the 123rd Legislature will need to 
reduce funding from current projections of needs or implement the statutory changes necessary to adjust funding to 
stay within the spending limits. 
LR0627(02) - Fiscal Note - Page I of2 
This bill amends the year-end transfers from the unappropriated surplus of the General Fund. It repeals the transfers 
to the State Contingent Account of up to $350,000 and the Loan Insurance Reserve within the Finance Authority of 
Maine of up to $1,000,000. For the General Fund and the Highway Fund, it requires at the close of each fiscal year 
that 80% of any state surplus must be used for tax relief and the remaining 20% must go to General Fund and 
Highway Fund Budget Stabilization Funds and only be used if revenues are not sufficient to fund the level of 
expenditure permitted by the growth limits. 
This legislation also affects the annual indexing of motor fuels beginning in fiscal year 2008-09 resulting in a 
Highway Fund revenue loss of $5,064,721 in fiscal year 2008-09 and a General Fund revenue loss of $5,685 in fiscal 
year 2008-09. 
The legislation also requires a 2/3s vote of the Legislature for all tax and fee increases followed by a majority 
approval by voters in a referendum. If a measure is submitted to the voters for approval of an increase in revenues or 
expenditures over the limit, the State will be required to reimburse local districts for certain election costs. 
This legislation also provides revenue and expenditure limitations for quasi-governmental agencies and requires the 
approval of 2/3s of the members of the legislative body of those agencies that have legislative bodies to increase 
celiain revenues or exceed the expenditure limit. Agencies that are affected by this legislation include the Child 
Development Services System, the Finance Authority of Maine, the Governor Baxter School for the Deaf, the Loring 
Development Authority, the Maine Community College System, the Maine Educational Loan Authority, Maine 
Maritime Academy, the Maine Port Authority, the Maine Municipal Bond Bank, the Maine State Housing Authority, 
the Northern New England Passenger Rail Authority, the University of Maine System, the Maine State Retirement 
System, the Maine Health and Higher Educational Facilities Authority and the Maine Governmental Facilities 
Authority. 
LR0627(02) - Fiscal Note - Page 2 of 2