An Act To Provide Tax Relief
Maine Legislature, Session 124, LD 0976
Committee Amendment CA_A_H562 (House)

COMMITTEE AMENDMENT "A " 
to LB. 3, L.D. 976, Bill, "An Act To Provide 
Tax Relief' 
Amend the bill by incorporating the attached fiscal note. 
SUMMARY 
This amendment incorporates a fiscal note. 
Page I - 124LRI934(02)-1 
COMMITTEE AMENDMENT 
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Approved: 06/08/09 ;::!Pac 
LD976 
LR 1934(02) 
An Act To Provide Tax Relief 
Fiscal Note for Bill as Amended by Committee Amendment "~,, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2009-10 
2010-11 
2011-12 
Net Cost (Savings) 
General Fund 
$0 
$0 
$4,254 
Highway Fund 
$0 
$0 
$3,673,386 
Revenue 
General Fund 
$0 
$0 
($4,254) 
Highway Fund 
$0 
$0 
($3,673,386) 
Other Special Revenue Funds 
$0 
$0 
($372,360) 
State Mandates 
Required Activity 
Unit Affected 
Each municipality must use the cost center budget summary format and post the 
Municipality 
summary on website if the municipality has a website. 
Projections 
2012-13 
$10,223 
$8,621,645 
($10,223) 
($8,621,645) 
($878,132) 
Local Cost 
Moderate 
statewide 
The required local activities in this bill may represent a State mandate pursuant to the Constitution of Maine. Unless 
General Fund appropriations are provided to fund at least 90% of the additional costs or a Mandate Preamble is 
amended to the bill and two-thirds of the members of each House vote to exempt this mandate from the funding 
requirement, municipalities may not be required to implement these changes. 
Fiscal Detail and Notes 
The spending limits imposed by this bill are projected to allow growth in expenditures from prior year spending of 
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1.84% in fiscal year 20 10-11, 3.22% in fiscal year 2011-12 and 3.15% in fiscal year 2012-13. Based on projections of 
General Fund and Highway Fund revenue in the May 2009 revenue forecast, these growth rates exceed the projected 
growth of revenue and recommended spend ing for these 2 major funds in fiscal year 2010-11.\ 
LRI934(02) - Fiscal Note - Page I of2 
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General Fund revenue growth is projected to exceed the spending limits beginning in fiscal year 2012-13. Highway 
Fund revenue growth rates fall below the spending limits through fiscal year 2012-13. The extent to which the 
spending limits in this bill affect spending in the General Fund and Highway Fund will depend on the level of 
budgeted spending in any fiscal year. The limitation on the spending in this bill also applies to Other Special Revenue 
Funds of the State. The impact on those funding sources will vary significantly between the different accounts. 
This legislation requires a statewide election involving all municipaliti'es to adopt an increase in spending over the 
expenditure limitation or to approve any tax and fee increase. If a special election is held, the State is required to 
reimburse the municipalities for the cost of the election. Assuming a special election, the Secretary of State estimates 
the total cost at $975,000. The legislation also requires the Secretary of State to send a notice to each active voter 
household providing infonnation about the election. It is estimated that the maximum cost to produce and mail these 
notices would be $434,400. 
The annual indexing of motor fuels would become contingent on voter approval beginning in fiscal year 2010-11. 
Consequently, the budgeted revenue associated with indexing would be removed from baseline revenue forecasts. 
With the changes to indexing proposed in the Highway Fund Biennial Budget Bill, LD 333 as amended by the Joint 
Standing Committee on TranspOliation, this would have no effect on budgeted revenue in fiscal year 2010-11, but 
would decrease budgeted revenue beginning in fiscal year 2011-12. Budgeted Highway Fund revenue would decrease 
by $3,673,386 in fiscal year 2011-12 and $8,621,645 in fiscal year 2012-13. The contingent indexing would also 
decrease r~venue to the General Fund and Other Special Revenue Funds of the Depaliment oflnland Fisheries and 
Wildlife and the Depaliment of Conservation. 
This bill amends the year-end statutory 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. It also repeals transfers to the Retirement Allowance Fund, the Reserve for 
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/ General Fund Operating Capital, the Retiree Health Insurance Internal Service Fund and the Capital Construction and 
Improvements Reserve Fund. The repeal of the current Maine Budget Stabilization Fund eliminates the funding 
source of the death benefit for law enforcement officers, firefighters and emergency medical services persons who die 
in the line of duty. 
For the General Fund and the Highway Fund, the bill requires at the close of each fiscal year that 80% of any state 
surplus must be transferred to reserve funds to be used for tax relief and the remaining 20% must go to General Fund 
and Highway Fund Budget Stabilization Funds that may only be used if revenues are not sufficient to fund the level of 
expenditure permitted by the spending growth limits. 
For 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. 
If the balance in the Tax Relief Reserve Fund c)"eated in this bill funded by year-end transfers at the close of a fiscal 
year exceeds 1 % of total General Fund expenditures, the Legislature must enact legislation by September 15th of that 
year to provide tax reductions. If the Legislature fails to enact legislation, the State Tax Assessor shall calculate a one-
time bonus personal exemption refund. 
If the Legislature calls itself into special session to enact legislation by the September 15th deadline, the Legislature 
will incur additional costs estimated to be $55,000 per day. The number of additional special session days and the 
timing of the additional costs can not be estimated. 
This bill creates the Highway Fund Reserve Fund to receive transfers by the State Controller of 80% unappropriated 
surplus of the Highway Fund at the close of a fiscal year. The remaining 20% of the unappropriated surplus of the 
Highway Fund will be transferred to Maine Highway Budget Stabilization Fund. If the amount in the Highway Fund 
Reserve Fund exceeds 1 % of the Highway Fund expenditures for the previous fiscal year, the State Tax Assessor shall 
calculate a proportional reduction on motor fuel taxes to become effective the following January 1 and remain in 
effect for one calendar year. 
LR 1934(02) - Fiscal Note - Page 2 of2