An Act To Provide Tax Relief Transmitted to the Clerk of the 124th M~ine Legislature by the Secretary of State on March 4,2009, and ordered printed Printed on recycled prlpcr 11/J.-~ ft;.1l!ILC~{
Maine Legislature, Session 124, LD 0976
Amends: 5 MRSA §1507, 5 MRSA §1511, 5 MRSA §1522, 5 MRSA §1523, 5 MRSA §1665, 5 MRSA §1710-F, 5 MRSA §13063-C, 5 MRSA §17253, 25 MRSA §1612, 30-A MRSA §706-A, 30-A MRSA §5721-A, 30-A MRSA §5721-B, 36 MRSA §3321

Legislative, Document 
No. 976 
LB.3 
House of Representatives, March 10, 2009 
An Act To Provide Tax Relief 
Transmitted to the Clerk of the 124th M~ine Legislature by the Secretary of State on March 
4,2009, and ordered printed 
Printed on recycled prlpcr 
11/J.-~ ft;.1l!ILC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §1507, next to last ~, as amended by PL 2005, c. 519, Pt. VV, 
§ 1, is repealed. 
Sec. 2. 5 MRSA §1511, as amended by PL 2005, c. 519, Pt. VV, §2, is repealed. 
Sec. 3. 5 MRSA §1522 is enacted to read: 
§1522. Maine Budget Stabilization Fund 
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 2045 and any 
other funds identified by law. Amounts in the fund may not exceed 12% of the total 
General Fund revenues received in the immediately preceding fiscal year and may not 
lapse, but remain in a continuing canying account to cany 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. 
The Legislature may authorize transfers, apprOpriatIOns and 
allocations from the fund only to fund the costs of State Government up to the 
expenditure limit calculated under section 2044 in years when state revenues are less than 
the amount necessary to finance the level of expenditures permitted under section 2044. 
4. Investment of funds; 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 12% limitation described in subsection 2, the State 
Controller shall transfer the excess to the Tax Relief Reserve Fund established under 
section 2045. 
Sec. 4. 5 MRSA §1523 is enacted to read: 
§1523. 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 transfers by the State Controller 
of unallocated Highway Fund surplus at the close of a fiscal year as provided in section 
2046 and any other funds identified by law. Amounts in the fund may not exceed 12% of 
the total Highway Fund revenues received in the immediately preceding fiscal year and 
may not lapse, but remain in a continuing canying account to cany 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. 
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3. 
Use of fund. 
The Legislature may authorize transfers, approprIatIOns and 
allocations from the fund only to fund the costs of the Highway Fund budget up to the 
expenditure limit calculated under section 2044 in years when Highway Fund. revenues 
are less than the amount necessary to finance the level of expenditures permitted under 
section 2044. 
4. Investment of funds; 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 12% limitation described in subsection 2, the State 
Controller shall transfer the excess to the Highway Fund Reserve Fund established under 
section 2046. 
Sec. 5. 5 MRSA c. 142, as amended, is repealed. 
Sec. 6. 5 MRSA §1665, sub-§I, as amended by PL 2005, c. 601, §2, is further 
amended to read: 
1. Expenditure and appropriation requirements. On or before September 1 st of 
the even-numbered years, all departments 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 the State Budget Officer, and 
submit to the officer estimates of their expenditure and appropriation requirements for 
each fiscal year of the ensuing biennium. The expenditure estimates 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. 
All depaliments and other agencies receiving or desiring to receive state funds from the 
Higlrvvay Fund shall submit to the officer estimates of their e),penditure and appropriation 
requirements for each fiscal year of the ensuing biennium that do not e)weed the High'tvay 
Fund appropriation of the previous fiscal year multiplied by one plus the average real 
personal income grO'.vth rate or 2.75%, 'Nhichever is less. The Highv .. ay Fund higlnvay 
and hrid2'8 imnrnvement accAlmt>: are exemnt fFAm thi>: >:nentiinp- limitAtion 
Sec. 7. 5 MRSA §1710-F, sub-§4, as enacted by PL 2005, c. 2, Pt. A, §8 and 
affected by § 14, is repealed. 
Sec. 8. 5 MRSA c. 167 is enacted to read: 
CHAPTER 167 
STATE TAX AND SPENDING LIMITATION 
§2041. Expenditure and revenue requirements; construction of chapter 
The following provisions of this section apply, notwithstanding any other provision 
of law. 
1. Expenditure limitations. Annual authorized state appropriations and allocations 
may not exceed the limits provided in this chapter unless authorized by the procedures 
specified in this chapter. 
2. Revenue increases. An increase in revenue may be adopted only as provided in 
section 2043. 
3. Construction. It is the intent of the Legislature that this chapter be interpreted 
liberally to restrain excess growth of state and local government. 
§2042. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Emergency. "Emergency" means extraordinary circumstances outside the control 
of the Legislature, including: 
A. Catastrophic events such as natural disaster, terrorism, fire, war and riot; 
B. Citizens' initiatives or other referenda; and 
C. Court orders or decrees. 
2. Increase in revenue. "Increase in revenue" means any legislation or tax levy that 
is estimated to result in a net gain in revenue of at least 0.01% of General Fund revenue 
in at least one fiscal year and: 
A. Enacts a new tax; 
B. Increases the rate or expands the base of an existing tax; 
C. Repeals or reduces any tax exemption, credit or refund; or 
D. Extends an expiring tax increase. 
3. Inflation adjustment factor. "Inflation adjustment factor" means the increase in 
the Consumer Price Index for the most recently available calendar year as calculated by 
the United States Department of Labor, Bureau of Labor Statistics. 
The inflation 
adjustment factor may not be less than zero. 
4. 
Population adjustment factor. 
"Population adjustment factor" means the 
average annual percentage increase in population for the 3 most recent years for which 
data is available as determined annually by the Executive Department, State Planning 
Office statewide based on federal census estimates. The population adjustment factor may 
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not be less than zero. 
5. Revenue. "Revenue" means taxes collected by the State. 
6. State spending. "State spending" means any authorized state appropriations and 
allocations. 
7. Tax. "Tax" means any amount raised for the general suppOli of government 
functions. It does not include charges to cover the cost of specific goods or services 
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provided or fees or other charges that are assessed for the purposes of covering the cost of 
administration of a government activity related to the purposes for which the fee is 
charged. 
§2043. Approval of revenue increases 
1. Approval of increases. To adopt an increase in revenue: 
A. The measure must be approved by a majority vote of all the members of each 
House of the Legislature; and 
B. Except as provided in subsection 2, the measure must be approved by a majority 
of the voters as described in subsection 3. 
2. Exceptions. Voter approval under subsection 1, paragraph B is not required if: 
A. 
Annual revenue is less than annual payments on general obligation bonds, 
required payments related to pensions and final court judgments; or 
B. The measure is an emergency tax and the provisions of section 2048 are followed. 
3. Approval by voters; emergency approval. The question of whether to adopt 
legislation to impose an increase in revenue must be submitted to the voters for approval 
at the next general election as defined in Title 21-A, section I. If the Legislature 
determines by a majority vote that legislation to increase taxes should take effect sooner 
than the next general election, the Legislature may provide for submission of the question 
to the voters at any regular or special election as defined in Title 21-A, section I. 
4. Revenue estimates. A measure submitted to the voters under subsection 3 must 
include an estimate of the amount to be raised by the measure for the first 4 fiscal years of 
its implementation if the measure is submitted to the voters in the first year of a biennial 
budget and the first 3 fiscal years if submitted in the 2nd year of a biennial budget. 
5. Notice. At least 30 days before an election required under subsection 3, the 
Secretary of State shall mail at the least cost a titled notice or set of notices addressed 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: 
A. The election date, hours, ballot title and text and local election office address and 
telephone number; 
B. 
For each proposed increase in revenue, the estimated or actual total of state 
spending for the current fiscal year and each of the past 4 years and the overall 
percentage and dollar change; and 
C. For the first full fiscal year of each proposed increase in revenue, estimates of the 
maximum dollar amount of each increase and of the first year's state spending 
without the increase. 
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 in 
prop0l1ion to the amount of the excess, and the excess revenue that was collected must be 
transferred to the Tax Relief Reserve Fund under section 2045 in the next fisca~ 
Ballot questions for increases in revenue must begin: "Do you favor (description of the 
tax increase) to increase state revenues by (amount of first or, if phased in, full fiscal year 
dollar increase) annually for the purpose of...?" The ballot question must also contain the 
information required by paragraphs Band C. 
6. Costs. The State shall reimburse municipalities for the costs of a special election, 
as defined in Title 21-A, section 1, called under this section. 
§2044. Expenditure limitation 
1. State expenditure limitation. 
Beginning with the first fiscal year that begins 
after this section takes effect, the maximum annual percentage change in state spending in 
the categories specified in this subsection equals the inflation adjustment factor plus the 
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population adjustment factor and any increases attributable to measures approved under 
section 2043. This limitation must be calculated separately for the following categories: 
A. General Fund; 
B. Highway Fund; and 
C. Other Special Revenue Funds, for which separate individual limitations must be 
applied by program, including internal service accounts but not bond fund accounts. 
2. 
Exceptions. 
The following may not be counted in calculating expenditure 
limitations under subsection 1: 
A. Amounts returned to taxpayers as refunds of amounts exceeding the expenditure 
limitation in a prior year; 
B. Amounts received from the Federal Government; 
C. Amounts collected on behalf of another level of government; 
D. Pension contributions by employees and pension fund earnings; 
E. Pension and disability payments made to former government employees; 
F. Amounts received as grants, gifts or donations that must be spent for purposes 
specified by the donor; 
G. Amounts paid pursuant to a COUlt award; or 
H. Reserve transfers. 
3. Approval of increases. To adopt an increase in state spending beyond the 
expenditure limitations under subsection 1: 
A. The measure must be approved by a majority vote of all the members of each 
House of the Legislature; and 
B. Except as provided in subsection 4, the measure must be approved by a majority 
of the voters as described in subsection 5. 
4. Exceptions. Voter approval under subsection 3, paragraph B is not required if the 
state spending is a result of an increase in revenue approved under section 2043. 
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5. ApprovaJ by voters; emergency approval. The question of whether to adopt 
legislation to impose an increase in state spending beyond the expenditure limitation 
under subsection 1 must be submitted to the voters for approval at the next general 
election as defined in Title 21-A, section 1. If the Legislature determines by a majority 
vote that legislation to increase state spending beyond the limitation should take effect 
sooner than the next general election, the Legislature may provide for submission of the 
question to the voters at any regular or special election as defined in Title 21-A, section I. 
6. Spending estimates. A measure submitted to the voters under subsection 3 must 
include an estimate of the state spending increase by the measure for the first 4 fiscal 
years of its implementation if the measure is submitted to the voters in the first year of a 
biennial budget and the first 3 fiscal years if submitted in the 2nd year of a biennial 
budget. 
7. Notice. At least 30 days before an election required under subsection 5, the 
Secretary of State shall mail at the least cost a titled notice or set of notices addressed to 
"All Registered Voters" at each address of evelY active registered voter. Notices must 
include the following information and may not include any additional infonnation: 
A. The election date, hours, ballot title and text and local election office address and 
telephone nuniber; 
B. 
For each proposed state spending increase, the estimated or actual total of 
spending for the current fiscal year and each of the past 4 years and the overall 
percentage and dollar change; and 
C. For the first full fiscal year of each proposed state spending increase, estimates of 
the maximum dollar amount of each increase and of fiscal year spending without the 
increase. 
Except by later voter approval, if a state spending increase exceeds any estimate prepared 
under paragraph C for the same fiscal year, the state spending increase is thereafter 
reduced in proportion to the amount of the excess. Ballot' questions for state spending 
increases must begin: "Do you favor increasing state spending by (amount of first or, if 
phased in, full fiscal year dollar increase) annually for the purpose of...7" The ballot 
question must also contain the information required by paragraphs Band C. 
8. Costs. The State shall reimburse municipalities for the costs of a special election, 
as defined in Title 21-A, section 1, called under this section. 
§2045. Transfers and refund of unappropriated General Fund surplus 
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. Amounts in the fund may not 
lapse, but remain in a continuing carrying account to carry out the purposes of this 
section. 
2. Transfer. At the close of each fiscal year, the State Controller shall identifY the 
amount of General Fund unappropriated surplus and make the following transfers: 
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 1522. 
3. Notification. By September 1 st annually, the State Controller shall notify the 
Legislature and the State Tax Assessor of the amount in the fund as a result of the transfer 
required by subsection 2. 
4. Refund. If the amount in the fund exceeds 1 % of General Fund expenditures, the 
Legislature shall, by September 15th, enact legislation to provide for the refund to 
taxpayers of amounts in the fund. Refunds may take the form only of temporary or 
permanent broad-based tax rate reductions. 
5. 
Refund in case of legislative inaction. 
If the Legislature does not enact 
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legislation by September 15th to provide refunds pursuant to subsection 4, then the State 
Controller shall, by September 30th, notify the State Tax Assessor of the amount in the 
fund. The State Tax Assessor shall calculate a one-time bonus personal exemption refund. 
The amount of the personal exemption refund must be calculated by dividing the amount 
in the fund identified by the State Controller under subsection 3 by the number of 
personal 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 October 15th 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. 
§2046. 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 be transferred to the fund; and 
B. 
Twenty percent of the unallocated surplus must be transferred to the Maine 
Highway Budget Stabilization Fund established in section 1523. 
3. Notification. By September 1 st annually, the State Controller shall notify the 
Legislature of the amount in the fund as a result of the transfer required by subsection 2. 
4. Refund. If the amount in the fund exceeds 1 % of Highway Fund expenditures for 
the previous fiscal year, the State Tax Assessor shall calculate, based on the amount in 
the fund, a proportional reduction in the taxes on motor fuels under Title 36, Palt 5 to 
become effective the following JanualY 1 st and remain in effect for one calendar year. 
§2047. Revenues of Other Special Revenue Funds accounts 
By September 1 st annually, each state agency that manages an Other Special 
Revenue Funds account shall submit an annual report to the Legislature identifying 
revenues received in the preceding fiscal year that exceed the expenditure limitation 
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established in section 2044 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 expend iture. 
§2048. Emergency taxes 
1. Emergency taxes permitted; conditions. The State may impose emergency 
taxes only in accordance with this section: 
A. 
The tax must be approved for a specified time period by a majority of the 
members of each House of the Legislature; 
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 
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emergency; and 
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C. The tax must be submitted for approval by the voters at the next regular election, 
as defined in Title 21-A, section I. 
2. Absence of approval. If not approved by the voters as provided in this section, 
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an emergency tax expires 30 days following the election. 
Sec. 9. 5 MRSA §13063-C, sUlb-§4, €fIB, as amended by PL 2005, c. 2, Pt. A, §9 
and affected by § 14, is fmiher amended to read: 
B. 
Notwithstanding section 1585, any balance remaining in the program after July 
31,2007 must be transferred to the Maine Budget Stabilization Fund as established in 
section ~ 
1522. 
Sec. 10. 5 MRSA §17253, sub-§3, as amended by PL 2005, c. 2, Pt. A, § I 0 and 
affected by § 14, is further amended to read: 
3. Components of unfunded liability contribution. The annual valuation repOli 
prepared by the actuary in accordance with section 17107 must include identification of 
the impact on the employer contribution rate of any excess General Fund revenues 
transferred to the Retirement Allowance Fund Dursuant to section 1532. 
Sec. n. 25 MRSA §1612, sub-§7, as amended by PL 2005, c. 2, Pt. A, § 12 and 
affected by § 14, is repealed. 
Sec. 12. 30-A MRSA §706-A, sUlb-§3, CiffC is enacted to read: 
C. The growth limitation factor may not exceed average real personal income growth 
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plus forecasted inflation. 
Sec. 13. 30-A MRS A §706-A, sub-§7, as affected by PL 2005, c. 2, Pt. B, §4 and 
amended by c. 12, Pt. WW, § I 0 and affected by §§ 13 and 14, is fllliher amended to read: 
7. 
Process for exceeding county assessment limit. 
A 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 if approved by the voters at a referendum held at a regular 
or special election, as defined in Title 21-A, section 1. 
Unless ~. coun!y chart~~ otherwise provides or prohibits a petition and referendum 
process, If a wr,ltten pe~ltlO~, signed by at least 10% of the number of voters voting in the 
last gubernatonal electIOn m the county, requesting a vote on the question of 
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,as~essmentlmlt IS submItted to the county commissioners within 30 days of 
the c~m~msslOners' vote pur~uant to this subsection, the article voted on by the 
com~lsslon~rs must be submItted to the legal voters in the next regular election or a 
specl~1 ~lectlOn called ~,r that purpose, The election must be held \vithin 45 days of the 
submls,slOn of the petltl~n, 
The election must be called, advertised and conducted 
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accordm? to the la',,", relatmg to municipal elections, except that the registrar of voters is 
not r~qUlr7d to ~repare or the clerk to post a new list of voters, the filing requirement 
con~amed m sectIOn 2528 does not apply and absentee ballots must be prepared and made 
ava,l1abl7 at least 14 days prior to the date of the referendum, 
For the purpose of 
reglstratl,on of voters, the regis~rar of voters must be in session the secular day preceding 
the electIon, The voters shall mdicate by a cross or checl, mark placed against the "'ord 
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les ,or,oelr opmlOn on the article. The results must be declared by the county 
commISSIoners and entered uoon the counh' records. 
Sec. 14. 30-A MRS A §706-B is enacted to read: 
§706-B. Cost center budget summary format 
Each municipality shall use the cost center budget summary format developed by the 
Department of Audit under Resolve 2005, chapter 136 in adopting budgets beginning 
with the first fiscal year that begins after 6 months from the effective date of this section. 
Sec. 15. 30-A MRSA §5721-A, sub-§3, ~C is enacted to read: 
C. The growth limitation factor may not exceed average real personal income growth 
plus forecasted inflation, 
Sec. 16. 30-A MRS A §5721-A, sub-§7, as affected by PL 2005, c. 2, Pt. C, §5 
and amended by c. 12, Pt. WW, § 12 and affected by § § 15 and 16, is further amended to 
read: 
7. Process for exceeding property tax levy limit. A 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 or by referendum, the 
propeliy tax levy limit may be exceeded by the same process that applies to adoption 
of the municipal budget except that the vote must be by written ballot on a separate 
article that specifically i"dentifies the intent to exceed the propeliy tax levy limit and 
the action must be approved by the voters at a referendum held at a regular or special 
election, as defined in Title 21-A, section I. 
B, 
Ifthe municipal budget is adopted by a town councilor city council, the propeliy 
tax levy limit may be exceeded only if approved by a majority vote of all the. elected 
members of the town council or city council on a separate article that specifically 
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identifies the intent to exceed the propeliy tax levy limit and approved by the voters 
at a referendum held at a regular or special election, as defined in Title 21-A, section 
1. 
Unless a municipal chUlier otherwise provides or prohibits a petition and 
referendum process, if a written petition, signed by at least 10% of the number of 
voters voting in the last gubernatorial election in the municipality, requosting a voto 
on the question of e)(Cooding the proporty tax levy limit is submitted to the municipal 
officers 'tvithin 30 days of the council's vote pursuant to this paragraph, tho article 
voted on by the council must be submitted to the legal voters in the next regular 
election or a special olection called for that purpose. The election must be hold 
within 45 days of the submission of the petition. 
The election must be called, 
adveliised 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 nev,' 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, tho 
registrar of voters must bo in sossion the secular day precoding the olection. 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 unon the municinal records. 
Sec. 17. 30-A MRSA §5721-B is enacted to read: 
§5721-B. Cost center budget summary format 
Each municipality shall use the cost center budget summary format developed by the 
Department of Audit under Resolve 2005, chapter 136 in adopting budgets beginning 
with the first fiscal year that begins after 6 months from the effective date of this section. 
Sec. 18. 36 MRSA §3321, as amended byPL 2007, c. 306, §9, is further amended 
to read: 
§3321. Annual adjustment of tax rates 
1. Generally. Beginning in 2003, and each calendar year thereafter, the excise tax 
imposed upon internal combustion engine fuel pursuant to section 2903, subsection 1 and 
the excise tax imposed upon distillates pursuant to section 3203, subsection 1 are subject 
to an annual rate of adjustment pursuant to this section. On or about February September 
15th of each year, the State Tax Assessor shall calculate the adjusted rates by multiplying 
the rates in effect on the calculation date by an inflation index as computed in subsection 
2. The adjusted rates must then be rounded to the nearest 1/1 0 of a cent and become 
effective on the first day of July immediately following the calculation if approved by the 
voters pursuant to subsection 5. The assessor shall publish the annually adjusted fuel tax 
rates and shall provide all necessary forms and reports to suppliers, distributors and retail 
dealers. 
2. Method of calculation; inflation index defined. The inflation index for 2003 is 
1.118, representing annual inflation adjustments for the years 1999 to 2002, inclusive. 
Starting in 2004 and every year thereafter, the inflation index is the Consumer Price 
Index as defined in section 5402, subsection 1 for the calendar year ending on the 
December 31st immediately preceding the calculation date, divided by the Consumer 
Price Index for the prior calendar year. 
3. 
Exclusion. 
This section does not apply to internal combustion engine fuel 
purchased or used for the purpose of propelling jet or turbojet engine aircraft. 
4. Legislative review. Starting in 2008 and each even numbered year thereafter, the 
Department of Transportation shall submit an emergency bill by the cloture date 
established for departments and agencies for the first regular session of the Legislature 
that suspends the adjustment in fuel tm, rates in the upcoming biennium resulting from 
the ooeration of this section. 
5. Voter approval. Beginning with adjustments calculated following the effective 
date of this subsection, a change in the rate of excise tax resulting from the adjustment 
required in subsection 1 may take effect only if approved by a majority of the voters at a 
regular or special election as defined in Title 21-A, section 1. The question on the ballot 
must read: 
"Do you favor increasing the rate of motor fuel taxes to account for inflation? If this 
question is approved the rate of tax on gasoline will increase from 
¢ per gallon 
to 
¢ per gallon and the rate of tax on diesel fuel will increase from 
¢ per 
gallon to 
¢ per gallon beginning next July 1 st." 
Sec. 19. 36 MRS A §7303 is enacted to read: 
§7303. Cost center budget summary format 
1. Annual report. Each county and municipality shall submit a copy of its cost 
center budget summaty adopted pursuant to Title 30-A, sections 706-B and 5721-B, 
respectively, to the bureau within 30 days after final approval of the county or municipal 
budget. 
2. Public access. Each county and municipality shall make copies of the cost center 
budget summary submitted pursuant to subsection I available to the public at least 2 
weeks before any action is taken to adopt the budget. If the county or municipality has a 
publicly accessible website, the county or municipality shall include a copy of the cost 
center budget summary as proposed and as finally adopted on that website. The bureau 
shall include all adopted county and municipal budgets in the cost center budget summary 
format on its publicly accessible website. 
Sec. 20. Maine Budget Stabilization Fund. The Maine Budget Stabilization 
Fund established in the Maine Revised Statutes, Title 5, section 1522 is the successor in 
every way to the Maine Budget Stabilization Fund established under former Title 5, 
section 1532. All funds in the Maine Budget Stabilization Fund established under former 
Title 5, section 1532 are transferred to the Maine Budget Stabilization Fund established in 
Title 5, section 1522 on the effective date of this Act. 
Sec. 21. Legislative intent; relationship to private and special law. It is the 
intent of the Legislature that the provisions of this Act supersede any conflicting 
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provisions of private and special law relating to the determination of revenue, fees and 
expenditures. 
Sec. 22. Application. This Act applies to fiscal years beginning on or after the 
date 4 months after the effective date of this Act. 
SUMMARY 
This initiated bill imposes expenditure limitations on state and local government and 
requires voter-approval of certain stateIitx'increases: 
Under this bill, growth in annual expenditures of the General Fund, the Highway 
Fund and Other Special Revenue Funds are limited according to increases in population 
and inflation. For the General Fund and Highway Fund budgets, revenues exceeding the 
expenditure limitation must be distributed by directing 20% of that excess to a budget 
stabilization fund and 80% 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 Reserve Fund must be used to 
provide tax relief through broad-based tax rate reductions or refunds proportional to 
individual income tax personal exemptions claimed in the previous tax year. 
The 
Highway Fund Reserve Fund must be used to provide a decrease in motor fuel taxes. 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. 
Under this bill, a state tax increase would require a majority vote of each House of 
the Legislature and majority approval of the voters. 
This bill provides that state expenditure limits contained in the bill may be exceeded 
by a majority vote of each House of the Legislature and majority approval by the voters. 
The bill adds the requirement of majority approval by the voters before municipal and 
county expenditure limits may be exceeded. 
The bill requires majority approval by the voters for the annual indexing for inflation 
of motor fuel taxes. 
. 
The bill requires counties and municipalities to use a cost center budget summary 
format developed by the Department of Audit and requires information in that format to 
be made available to local voters, filed annually with Maine Revenue Services and posted 
on any publicly accessible website maintained by the county or municipality as well as on 
the Maine Revenue Services website.