An Act To Ensure Responsible Government Spending, Investment and Educational Efficiency
Maine Legislature, Session 123, LD 0804
Committee: Appropriations and Financial Affairs
Sponsors: EDMONDS, WOODBURY, DAMON, PERRY, CUMMINGS
Amends: 5 MRSA §1534, 20-A MRSA §15671-A, 30-A MRSA §706-A, 3 MRSA §554, 3 MRSA §555, 36 MRSA §7302

Legislative Document 
No. 804 
S.P.253 
February 16,2007 
An Act To Ensure Responsible Government Spending, Investment 
and Educational Efficiency 
Received by the Secretary ofthe Senate on February 15,2007. Referred to the Committee 
on Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed 
pursuant to Joint Rule 218. 
Presented by President EDMONDS of Cumberland. 
Cosponsored by Representative WOODBURY ofYannouth and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DAMON of Hancock, PERRY of Penobscot, Representative: Speaker CUMMINGS 
of Portland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 5 MRSA §1534, sub-§l, ~C is enacted to read: 
C. For the purposes of determining compliance with this section, if the Legislature 
eliminates or reduces a General Fund appropriation and creates in its place a reserve 
account to which funds are directed from undedicated revenue for the purposes of 
replacing the eliminated or reduced General Fund appropriation with a non-General 
Fund appropriation, the base for the previous fiscal year must be reduced by the value 
of the eliminated or reduced General Fund appropriation. 
Sec. A-2. 20-A MRSA §15671-A, sub-§l, ~-1 is enacted to read: 
B-1. "Net new funding" means the amount of funds to be received by a school 
administrative unit from the State for that fiscal year pursuant to section 15688, 
subsection 3-A, paragraph D, less the product of the following: the amount of such 
funds received in the prior fiscal year mUltiplied by the growth limitation factor 
calculated pursuant to Title 30-A, section 5721-A for the municipality or 
municipalities that comprise the school administrative unit. 
Sec. A-3. 20-A MRS A §15671-A, sub-§6 is enacted to read: 
6. 
Exceeding maximum state and local spending target when the school 
administrative unit is the recipient of net new funding. In any year in which a school 
administrative unit is the recipient of net new funding, if the sum of that school 
administrative unit's required local contribution determined pursuant to section 15688, 
subsection 3-A plus the state contribution as calculated pursuant to section 15688, 
subsection 3-A, paragraph D plus any additional local amount proposed to be raised 
pursuant to section 15690, subsection 3 exceeds by more than 5% 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 requirements of 
section 15690, subsection 3, paragraph B. 
B. For all school administrative units that finally approve the school budget at a town 
meeting or district meeting, and notwithstanding section l304, 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 must be 
approved by at least 2/3 of the school administrative unit's legislative body or, if the 
legislative body votes to approve the article by a simple majority but not by at least a 
2/3 majority, voter approval of the article must be finally approved by a majority of 
voters at referendum. 
C. For all school administrative units with a legislative body that adopts the school 
budget by a referendum process, the article must be approved by a majority of voters 
at referendum. 
Page I - 123LR1386(Ol)-1 
I 
D. For all school administrative districts and community school districts that have 
adopted the budget validation process established in section 1305-A or 170 I-A, the 
article must be approved by a majority of the voters at the open district meeting and a 
majority of voters at the budget validation referendum. 
E. 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 requirements 
of section 15690, subsection 3, paragraph B and be approved by at least 2/3 of 
the entire membership of the council in a vote taken in accordance with section 
15690, subsection 5 or, if the council votes to approve the article by a simple 
majority of the council but not by at least a 2/3 majority of the entire 
membership, by a majority of voters at referendum. 
(3) If an article is approved by at least 2/3 of the entire membership of 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 does not take effect. Subsequent to the vote, the school committee or 
board may again propose an additional amount, subject to the requirements of 
this section. 
(4) 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 
additional amount is submitted to the municipal officers within 30 days of the 
I 
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 held within 45 days of the 
submission of the petition. 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 and 
absentee ballots must be prepared and made available at least 14 days prior to the 
date of the referendum. 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. A-4. 30-A MRSA §706-A, sub-§7-A is enacted to read: 
I 
7-A. 
Process for exceeding county assessment limit when the county is the 
recipient of net new funding. When the county is the recipient of net new funding, that 
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, and the approval is ratified at 
referendum. For the purposes of conducting the referendum election, the article voted on 
by the commissioners and budget advisory committee 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, the filing requirement contained in section 2528 does 
not apply and absentee ballots must be prepared and made available at least 14 days prior 
to the date of the referendum. 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. 
Sec. A-S. 30-A MRSA §S721-A, sub-§7-A is enacted to read: 
7-A. Process for exceeding property tax levy limit when the municipality is the 
recipient of net new funding. If a municipality is the recipient of net new funding, that 
municipality may exceed or increase the property tax levy limit only by the following 
means. 
A. 
If the municipal budget is adopted by town meeting, the property tax levy limit 
may be exceeded only if approved by at least 2/3 of the assembled membership of the 
town meeting or, if the legislative body votes to approve the article by a simple 
majority but not by at least a 2/3 majority, the property tax levy limit may be 
exceeded only if finally approved by a majority of voters at referendum. 
B. If the municipal budget is adopted by referendum, the property tax levy limit may 
be exceeded only if a separate article that specifically identifies the intent to exceed 
the property tax levy limit is approved by a simple majority ofthe referendum voters. 
C. 
In a municipality where the responsibility for final adoption of the 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) An article approving the property tax levy limit must be approved by at least 
2/3 of the entire membership of the councilor, if the council votes to approve the 
article by a simple majority of the council but not by at least a 2/3 majority of the 
entire membership, by a majority of voters at referendum. 
(2) If an article is approved by at least 2/3 of the entire membership of the 
council pursuant to subparagraph (l), the voters may petition for a referendum 
vote on the same article in accordance with subparagraph (3). If a petition is filed 
in accordance with subparagraph (3), 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 does not take effect. Subsequent to the vote, the school committee or 
board may again propose an additional amount, subject to the requirements of 
this section. 
(3) 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 
additional amount is submitted to the municipal officers within 30 days of the 
council's vote pursuant to subparagraph (1), 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 held within 45 days of the 
submission of the petition. 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 and 
absentee ballots must be prepared and made available at least 14 days prior to the 
date of the referendum. 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. 
PART B 
Sec. B-1. 3 MRSA §554 is enacted to read: 
§554. Debt limitations 
In any fiscal year, no more than 5% of General Fund and Highway Fund revenues 
may be allocated to tax-supported debt service payments. For the purposes ofthis section, 
a "tax-supported debt service payment" means any payment required by an evidence of 
indebtedness or similar borrowing certificate for all general obligation bonds and the 
following types of revenue bonds issued under the authority of state law: certificates of 
participation, capital leases and all borrowing accomplished pursuant to Title 4, chapter 
33. The term "tax-supported debt service payment" does not include a payment towards 
debt service on bonds backed by the moral obligation of the State. 
Sec. B-2. 3 MRSA §555 is enacted to read: 
§555. Limitations on unfunded actuarial liabilities 
By January I, 2008 and by every January 1 st thereafter, the Treasurer of State shall 
determine and report to the Legislature the actuarial liability ratio of the State, with the 
numerator as all pension, health and life insurance benefits scheduled to be provided to 
retired state employees, retired teachers and other retired governmental employees 
entitled to benefits pursuant to state law and the denominator as all assets pledged against 
those aggregate liabilities. The Treasurer of State shall make this determination in 
consultation with 
the Maine State Retirement System and the Departinent of 
Administrative and Financial Services, Bureau of Human Resources, Division of 
Employee Health and Benefits. The report required by this section must include the 
actuarial liability ratios of all other states to the extent comparative data are available. 
PART C 
Sec. C-l. 
Regional delivery of educational administrative services; 
legislative findings and intent; establishment of goals. 
1. Findings. The Legislature finds that: 
A. The State's annual state and local expenditure for kindergarten through grade 12 
public education significantly exceeds national and peer state averages; 
lOB. It is the intent of the State that these state and local expenditures be brought into 
greater conformity with national and peer state averages and it is a role of the 
Legislature to establish goals to realize this intent; 
C. 
A number of administrative services could be provided to multiple school 
administrative units within defined regions within the State in a manner that would 
preserve or improve the quality of those services, preserve the quality of education 
services provided to the State's public school students and reduce the cost of 
providing those services for the State and the participating school administrative 
units; 
D. The most appropriate geographic regions within the State to begin systematically 
developing and implementing regionalized educational administrative services are the 
centers or regions that currently provide career and technical education services to 
broader geographic regions; 
E. The State's school administrative units are varied with respect to the benefits that 
may be available and the efficiencies that may be achieved as a result of regionalizing 
certain administrative services; and 
F. The most appropriate location of decision-making authority with respect to which 
educational administrative services to regionalize and how to otherwise meet the goal 
established by the Legislature is at the local and regional level. 
It is, therefore, the intent of the Legislature that this Part provide the necessary direction, 
guidance and resources to bring the state and local expenditures for kindergarten through 
grade 12 public school education into a greater conformity with national and peer state 
averages without impairing the quality of education services delivered to the State's 
public school students. 
2. Goals. The following goals are established: 
A. It is the goal of the Legislature that by school year 2009-2010, the total state and 
local expenditure for providing school administrative services in the State, measured 
as a percent of personal income in this State, as estimated by the United States 
Department of Commerce, Bureau of Economic Analysis, be reduced by a minimum 
of 10%. 
I 
B. 
It is also the goal of the Legislature that upon the implementation of the 
recommendations of the planning alliances established by this Part: 
(I) The ratio of students to administrative personnel in all regions of the State 
will reasonably conform to related ratios established by the essential programs 
and services school funding model; 
(2) 
School administrative functions, including without limitation special 
education management, human resources management, information technology 
management and financial management functions, will be shared with multiple 
school administrative units and municipal units of government among and 
throughout the planning alliance regions; 
(3) The student transportation systems throughout all regions of the State will be 
well planned and coordinated among the school administrative units and avoid 
redundancy in routing; 
(4) Labor negotiation calendars and procedures among the school administrative 
units will be coordinated insofar as practicable; and 
(5) 
The purchase of all supplies and materials common to the school 
administrative units and all supplies and materials common to both school 
administrative units and municipal units of government will be conducted in a 
manner designed to maximize the purchasing power of the aggregated 
governmental units. 
Sec. C-2. Planning alliances established. For the purposes of assisting in the 
regional delivery of educational administrative services among all the school 
administrative units, 26 planning alliances are established in accordance with this section. 
1. Service area. Each planning alliance shall serve the school administrative units 
within a geographic area defined by the State's career and technical education centers, as 
set out in the Maine Revised Statutes, Title 20-A, section 8402. 
2. Composition. Each planning alliance is composed of 12 members, including 4 
municipal officials, 4 public school officials and 4 members of the general public, all of 
whom must reside within the geographic area served by the career and technical 
education center. 
A. For each planning alliance, the 4 municipal officials must be elected by caucus. 
(I) According to the implementation schedule provided in section 5 of this Part, 
the Commissioner of Education shall notify all municipal officials serving in the 
geographic region served by the career and technical education center to caucus 
at a specified date, time and place for the purpose of electing 4 municipal 
officials to be members of the planning advisory committee. The commissioner 
or the commissioner's designee serves as nonvoting moderator for that regional 
caucus. Nominations for the municipal official representatives must be received 
from the floor. 
Although municipal officials residing within the career and 
technical education center's geographic area may be nominated, only municipal 
officials serving within the same geographic area and in attendance at th€ caucus 
are allowed to vote. 
The method of voting must be decided by voting 
membership. The 4 nominees recelvmg the most votes are approved as the 
municipal official members of the planning alliance, except that no municipality 
may have more than one representative on the planning alliance. The names of 
those elected by the caucus must be recorded and forwarded to the commissioner. 
B. For each planning alliance, the 4 school officials must be elected by caucus. 
(1) According to the implementation schedule provided in section 5 of this Part, 
the Commissioner of Education shall notify all school officials serving in the 
geographic region served by the career and technical education center to caucus 
at a specified date, time and place for the purpose of electing 4 school officials to 
lObe members of the planning advisory committee. The commissioner or the 
II 
commissioner's designee serves as nonvoting moderator for that regional caucus. 
Nominations for the school official representatives must be received from the 
floor. Although school officials residing within the career and technical education 
center's geographic area may be nominated, only school officials serving within 
the same geographic area and in attendance at the caucus are allowed to vote. The 
method of voting must be decided by voting membership. The 4 nominees 
receiving the most votes are approved as the school official members of the 
planning alliance except that no school administrative unit may have more than 
one member on the planning alliance. The names of those elected by the caucus 
must be recorded and forwarded to the commissioner. 
C. For each planning alliance, the 4 members of the general public are appointed as 
follows. 
(1) The President of the Senate shall appoint one member of the general public 
for each planning alliance. 
(2) The minority leader of the Senate shall appoint one member of the general 
public for each planning alliance. 
(3) The Speaker of the House shall appoint one member of the general public for 
each planning alliance. 
(4) The minority leader of the House shall appoint one member of the general 
public for each planning alliance. 
D. Each planning alliance must be provided with one full-time staff assistant, whose 
salary and benefits must be provided at state expense in accordance with section 4 of 
this Part. 
3. Terms. Members of each planning alliance serve for a period of 2 years. Any 
vacancy must be filled in the same manner and by the same authority as established by 
this section for the original appointment. 
4. 
Timing of election and appointments. 
All elections and appointments of 
planning alliance members must be accomplished according to the implementation 
schedule provided in section 5 of this Part. 
Sec. C-3. Planning alliance responsibilities. Each planning alliance must be 
convened and respond to the following charge according to the implementation schedule 
provided in section 5 of this Part. 
1. 
Identification of baseline information. 
According to the implementation 
schedule provided in section 5 of this Part, each planning alliance shall for the geographic 
region it represents: 
A. Calculate the total expenditures for educational administrative services, measure 
that expenditure as a percent of personal income in this State and identi1)r the degree 
to which that expenditure would have to be reduced in order to comply with the goals 
established in section 1 of this Part; 
B. 
Identi1)r all the types of public school administrative units including school 
administrative districts, community school districts, municipal school units and any 
school unions that currently provide for shared superintendent services. 
C. Identi1)r the degree to which administrative services, specifically, and educational 
services, generally, are currently being shared between and among the school 
administrative units within the region or across region lines, including without 
limitation formal regional alliances, bulk purchasing agreements or other coalitions 
designed to provide regionally developed services to the participating school 
administrative units; 
D. Identi1)r for each school administrative unit the relationship between that school 
system's actual employment or budget, as applicable, and the allocated employment 
or budget, as applicable, as identified by the essential programs and services school 
funding model for the following categories: school system administration and 
support, operations and maintenance, special education and transportation; 
E. 
Identi1)r the region's current aggregate educational administrative personnel 
profile, measured in full-time equivalents, including, but not limited to, the following 
positions: superintendent, principal, special education director, transportation 
director, technology director, business agent or financial officer, human resources 
director and all reasonably equivalent positions; 
F. Identi1)r all municipal administrative services by type and position that are being 
similarly provided on the municipal level and might reasonably be subject to shared 
services arrangements, including positions in the fields of technology and financial 
and human resources management and all reasonably equivalent positions; 
G. 
Identi1)r all major types of materials and supplies purchased by the school 
administrative units along with all similar materials and supplies purchased by the 
municipalities in the region; 
H. 
Identi1)r all schedules that pertain to the school administrative units, including 
without limitation school calendars and all schedules for labor negotiations and 
contract approval, school board meetings, budget development and budget approval 
meetings; 
I. Map out the entire school transportation system that is used to transport students to 
and from school once a day; 
J. Identify all educational mandates enacted by the Legislature that could be repealed 
or redesigned in a manner that would eliminate the need for redundant or unnecessary 
educational administrative services without. impairing the quality of educational 
services provided to the public school students; and 
K. Identify any other baseline information regarding the provision of educational 
administrative services within the region that the planning alliance finds to be 
pertinent to responding to the legislative charge. 
2. Development of recommendations. According to the implementation schedule 
provided in section 5 of this Part, each planning alliance shall prepare in the form of 
preliminary recommendations a plan for the redesign of the provision of educational 
administrative services within the region that is appropriate to the needs of the region and 
would clearly meet the goals as established for the region in subsection I, paragraph A. 
The plan must, at a minimum: 
A. Identify any recommended redesign of the types of school administrative units 
within the region, if applicable; 
B. 
Establish as a finding of the planning alliance the recommended number of 
educational administrative full-time equivalent positions that should be funded within 
the region for the following positions: superintendent, principal, special education 
director, transportation director, technology officer, business agent or financial 
officer, human resources director and all reasonably equivalent positions. This 
finding must specifically identify all recommended service sharing arrangements 
between and among municipalities and school administrative units within the region, 
particularly in the areas of technology, transportation maintenance, human resources 
and financial management, as those recommended arrangements would affect the 
recommended personnel profile; 
C. 
Recommend a specific set of adjustments to the region's current profile of 
administrative personnel to be implemented over the next 2-year period that would 
serve to adjust the current personnel profile as identified under subsection 1, 
paragraph E to the recommended personnel profile; 
D. 
Recommend, as applicable, the organization or reorganization of any joint 
purchasing arrangements between and among the school administrative units within 
the region and between and among the school administrative units and the 
municipalities within the region; 
E. Recommend, to the extent necessary to achieve the goals of this Part and facilitate 
other recommendations of the planning alliance, the coordination of schedules, 
including without limitation, school calendars, labor contract negotiations, school 
board meetings, school budget development and adoption meetings; 
F. 
Recommend, as applicable, the development of coordinated regional or 
subregional school transportation systems; and 
G. Recommend any changes to state law that would assist the region in meeting the 
goals of this Part without impairing the quality of educational services provided to 
State's public school students. 
3. Outreach. According to the implementation schedule provided in section 5 of 
this Part, each planning alliance shall hold public hearings on its preliminary 
recommendations. At a minimum, a public hearing must be held at a school facility in 
each school administrative unit or school union within the region. On the basis of the 
information provided and input received at the public hearings, each planning alliance 
shall amend the preliminary recommendations as appropriate to develop its final 
recommendations according to the implementation schedule in section 5 of this Part. 
4. Transmittal and implementation of final recommendations. Each planning 
alliance shall adopt its final recommendations according to the implementation schedule 
provided in section 5 of this Part. The final recommendations must identifY the goals that 
must be met within the region to comply with the goals established by this Part and 
clearly identifY by what means and by when the goals will be reached through the 
implementation of the recommendations of the planning alliance. 
A. Each planning alliance shall formally transmit to every school board within the 
planning alliance region the final recommendations in a format that includes: 
(1) The complete report for the school board's records; 
(2) An executive summary of the entire report suitable for presentation to the 
legislative body of the school administrative unit to consider for adoption; 
(3) The specific recommendations pertaining to the school administrative unit 
that fall within the authority of the school board to implement, suitable for 
presentation to the school board to consider for adoption; and 
(4) The specific recommendations pertaining to the school administrative unit 
that fall within the authority of the legislative body of the school administrative 
unit to implement, suitable for presentation to that legislative body to consider for 
adoption. 
B. The school board and the legislative body of every school administrative unit 
within the planning alliance region shall act on the recommendations transmitted to 
them according to the implementation schedule provided in section 5 of this Part. 
Sec. C-4. Resources and Department of Education responsibilities. 
1. Resources. Notwithstanding any other law, the highest priority of distribution 
from the Fund for the Efficient Delivery of Educational Services as established in the 
Maine Revised Statutes, Title 20-A, section 15754 for fiscal year 2007-08 and fiscal year 
2008-09 is to provide the staff support and other related support to the planning alliances 
as required by this Part. 
2. Department of Education responsibilities. The Department of Education shall 
assist in the implementation of this Part as set out in this subsection: 
A. The Department of Education shall adopt rules to assist in the implementation of 
this Part. Rules adopted pursuant to this paragraph are routine technical rules as 
defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. At a 
minimum, those rules must: 
I 
( I) Specifically define the career and technical education regions within the State 
both geographically and according to each region's school administrative units; 
(2) 
Identify by position and support position all educational administrative 
services that should be reasonably included in the analysis conducted by each 
planning alliance; 
(3) Establish the minimum qualifications, job description and salary and benefit 
range for each planning alliance's full-time staff assistant; and 
(4) Provide for a system of administration of the Fund for the Efficient Delivery 
of Educational Services, modeled after the system of administration for the Fund 
for the Efficient Delivery of Local and Regional Services provided in the Maine 
II 
Revised Statutes, Title 30-A, chapter 231 and including the automatic payment of 
salary and benefits for one full-time staff assistant for each planning alliance in 
accordance with section 2 of this Part. 
B. In addition to any responsibilities required by this Part or imposed by rule, the 
Department of Education shall assist in the implementation of this Part by: 
(I) Assisting all planning alliances in the collection and presentation of data 
pertinent to the charge established by this Part; 
(2) Assisting in the organization of caucuses as provided in section 2 of this Part; 
(3) 
Providing or contracting for facilitation services to be provided to the 
planning alliances to ensure their ability to fulfill the charges required by this 
Part; and 
(4) Submitting interim progress reports to the Legislature no later than January I, 
2008 and January I, 2009 and a final report no later than January 1,2010 that 
describe the compliance of the planning alliances with the requirements of this 
Part. 
Sec. C-S. Implementation schedule. The various charges established by this 
Part must be accomplished according to the following schedule. 
1. 
Appointments and caucuses. 
The initial appointments and caucuses of 
municipal and school officials required by section 2 of this Part must be completed no 
later than October 1,2007. 
2. Hiring of staff assistants. The full-time staff assistant for each planning alliance 
must be hired by the planning alliance no later than December 1, 2007. 
3. Convening of planning alliances. The planning alliances must be convened no 
later than January I, 2008. 
4. Completion of identification and baseline information. The planning alliances 
shall complete the identification of baseline information as required by section 3, 
subsection I of this Part no later than July 1,2008. 
5. Develop preliminary recommendations. The planning alliances shall complete 
the development of their preliminary recommendations as required by section 3, 
subsection 2 of this Part no later than September 1, 2008. 
6. 
Outreach effort. 
The planning alliances shall complete the outreach effort 
required by section 3, subsection 3 of this Part no later than January 1,2009. 
7. 
Final recommendations. 
The planning alliances shall develop their final 
recommendations and transmit those recommendations as required by section 3, 
subsection 4 of this Part no later than February 1,2009. 
8. Consider and act on recommendations. The school boards and the legislative 
bodies of the school administrative units shall consider and act on the recommendations 
of the planning alliances no later than July 1,2009. 
Sec. C-6. Sunset; achievement of required efficiencies Unless reauthorized 
by the Legislature, this Part is repealed February I, 2010. 
It is the intent of the 
Legislature that the goals of section I, subsection 2 of this Part be achieved by that date. 
If the goals of this Part have not been achieved in a career and technical education region 
served by a planning alliance pursuant to this Part, the Commissioner of Education shall 
present to the joint standing committee of the Legislature having jurisdiction over 
education matters a plan for the reorganization of all school administrative units within 
that career and technical education region. The commissioner's plan must be designed to 
achieve the goals of section I, subsection 2 of this Part. The joint standing committee of 
the Legislature having jurisdiction over education matters is authorized to submit 
legislation in the Second Regular Session of the 124th Legislature that reorganizes the 
school administrative units within any career and technical education region that has 
failed to achieve the goals of this Part by February 1,2010. 
PART D 
Sec. D-l. 36 MRSA §7302, sub-§2, as enacted by PL 2005, c. 2, Pt. H, §2, is 
amended to read: 
2. Indicators; annual report. With reference to Title 5, chapter 142; Title 20-A, 
section 15671, subsection 1; and Title 30-A, sections 706-A and 572I-A, the State 
Planning Office shall develop and apply specific, quantifiable performance indicators 
I 
against which the progress in achieving the tax burden reduction goals established in 
section 730 I 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, municipalities, 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 730 I that reflect the best practices in this State, other states 
and other countries. The State Planning Office shall enlist the services of the Maine 
Development Foundation, established in Title 10, section 916, in order to annually 
present to the general public the information provided in the reports required by this 
section. 
Sec. D-2. 36 MRSA §7302, sub-§3, as enacted by PL 2005, c. 2, Pt. H, §2, is 
repealed and the following enacted in its place: 
3. Data. The State Planning Office shall collect and analyze data and report in 
accordance with this subsection. 
A. 
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 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. The report must include information that identifies spending and 
revenue behavior by individual municipalities, counties and school administrative 
units. 
Upon request, other departments of State Government shall cooperate and 
assist the State Planning Office in the preparation of the report. 
B. 
No later than the January 1 st following the publication of the United States 
Department of Commerce, United States Census Bureau's Census of Governments 
report as required by 13 United State Code, Section 161 (2005), the State Planning 
Office shall submit to the Legislature a report on the State's state and local 
government payroll and expenditures in comparison to the state and local government 
employment and expenditures across all other states and across a subset of those 
states that should reasonably be considered peer states in terms of demography, 
geography, climate and other relevant factors. The categories of employment and 
expenditures must be calculated according to both state and local function and 
include, without limitation: elementary, secondary and higher education; public 
safety including corrections, police, fire and emergency services; public works 
including solid waste, water and wastewater management, highways and public 
buildings; natural resources protection; housing and community development; social 
insurance administration; public welfare; financial administration; health; judiciary; 
libraries and recreation services; and general government administration. The report 
shall identify the categories of employment and expenditures that deviate 
significantly from national or peer state averages. 
C. 
No later than January 1, 2008, the State Planning Office shall develop the 
analytical framework for the report required by paragraph B, working in consultation 
with experts from the University of Maine in the area of comparative governmental 
analysis· and 
representatives of all levels of government whose payroll and 
expenditures are categorized within the United States Department of Commerce, 
United States Census Bureau's Census of Governments report. 
D. The State Planning Office, working in conjunction with Maine Revenue Services, 
shall establish a contract with the Maine Development Foundation, established in 
Title 10, section 916, to compile a comprehensive comparative analysis of 
government revenues in each state to be submitted to the Legislature no later than 
January 15,2008. The analysis must include, without limitation: 
ill All sources of governmental revenue by type of. tax, fee, intergovernmental 
transfer, investment or other identifiable source for each state for the most recent 
year for which those data are available; 
(2) 
Various comparative measures of burden, ranked by state, including 
residential, nonresidential and exported burden, with respect to state and local 
government taxes and fees; 
(3) Comparative rankings of reliance among all the states with respect to each 
type of state and local tax and fee; and 
(4) Comparative rankings of tax rates among all the states for state income taxes, 
sales taxes and property taxes measured in full value. 
II 
SUMMARY 
Part A of this bill establishes new procedures to govern the act of exceeding or 
increasing the various spending limitations that currently apply to state, county, 
municipal and school governments. On the state level, Part A establishes a system to 
make the determination of compliance with the spending limitation system an accurate 
year-to-year comparison if the Legislature decides to fund a General Fund expenditure 
outside of the General Fund appropriation process. 
For counties, schools and 
municipalities, the existing approval procedures to exceed the current spending 
limitations would still be required, but, if the local government was proposing to exceed 
or increase the applicable limitation and the local government was the recipient of net 
new funding from the State, the approval would have to be accomplished by a 
referendum vote. For municipal and school governments, a 2/3 vote of the legislative 
body, such as the town meeting or school district meeting or city council, would avoid the 
need to obtain a referendum approval of the budget. 
Part B of this bill establishes a 5% limit on the amount of General Fund and Highway 
Fund revenues that may be allocated for tax-supported debt service in any fiscal year. 
Part B also directs the State Treasurer to annually calculate and report to the Legislature 
on the aggregate unfunded actuarial liability of the State, taking into consideration health 
and life insurance and pension benefits that are scheduled to be provided to retired state 
employees, teachers and other governmental workers provided benefits pursuant to state 
law. 
Part C of this bill establishes as a goal a 10% reduction by the year 20 lOin the 
statewide expenditure for educational administrative services in kindergarten to grade 12 
public education as that expenditure is measured as a percent of total personal income. It 
establishes goals for specific categories of costs and services. 
It also establishes a 
comprehensive system of analysis, recommendation, outreach and implementation to be 
accomplished on the local level through the creation of regional planning alliances to 
achieve that goal within the 26 career and technical education regions in Maine. If the 
cost reduction goal is not achieved, the Commissioner of Education must submit a plan to 
the Legislature to achieve the cost reductions. 
Part D of this bill amends the law governing the responsibilities of the Executive 
Department, State Planning Office to collect data and report about the effects of 
I 
government spending limitation law on Maine's overall tax burden. Part D requires the 
State Planning Office to work with the Maine Development Foundation to prepare the 
required compliance reports in a manner designeq to be accessible to the general public. 
Part D also requires the State Planning Office to perform calculations of Maine's state 
and local government employment and expenditure levels in comparison with other states 
for the purpose of identifying categories of government employment and expenditure that 
deviate significantly from national and peer state averages. Finally, Part D directs the 
State Planning Office, working in conjunction with Maine Revenue Services, to establish 
a contract with the Maine Development Foundation to comprehensively analyze the 
sources of government revenue available to each state in the United States, including 
Maine, with a focus on comparing the various state and local taxes and fees in terms of 
nominal revenues by category, tax and revenue burdens, rates of taxes and fee schedules 
and levels of reliance and exportation.