An Act To Require the Inclusion of a Financial Statement on School Administrative Unit Bond Obligations When Voting on a School Construction Project
Maine Legislature, Session 125, LD 0349
Committee: Education and Cultural Affairs
Sponsors: NUTTING, COTTA, LANGLEY, CURTIS, CUSHING, DUNPHY, NASS, PRESCOTT, RICHARDSON, WINTLE, ROSEN
Amends: 20-A MRSA §15904

Legislative Document 
No. 349 
H.P. 275 
House of Representatives, February 8, 2011 
An Act To Require the Inclusion of a Financial Statement on School 
Administrative Unit Bond Obligations When Voting on a School 
Construction Project 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Speaker NUTTING of Oakland. 
Cosponsored by Representative COTTA of China, Senator LANGLEY of Hancock and 
Representatives: CURTIS of Madison, CUSHING of Hampden, DUNPHY of Embden, NASS 
of Acton, PRESCOTT of Topsham, RICHARDSON of Carmel, WINTLE of Garland, Senator: 
ROSEN of Hancock. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §15904, sub-§4, as amended by PL 2005, c. 12, Pt. WW, 
§§8 and 9, is further amended to read: 
4.  Form.  The article shall indicate:  
D.  The estimated amount of the additional operating costs during each of the first 2 
years; and 
E.  The That the school administrative unit is responsible for the local share of annual 
principal and interest payments for this school construction project included in the 
total cost of education appropriated pursuant to section 15690, subsection 1, if any, 
and for the annual principal and interest payments for the non-state-funded portion of 
this school construction project.; 
F.  If the total indebtedness incurred exceeds $20,000, in a statement prepared by the 
treasurer of the school administrative unit, the amount of indebtedness incurred, 
including indebtedness associated with bonds, lease agreements or lease-purchase 
agreements; 
G.  In a statement prepared by the treasurer of the school administrative unit, the total 
amount of bonds of the school administrative unit outstanding and unpaid, authorized 
and unissued and contemplated to be issued if the enactment submitted to the 
electorate is ratified.  The statement must also include an estimate and explanation of 
costs involved, including varying interest rates, the estimated cost of the interest on 
the bond amount to be issued and the total cost of principal to be paid at maturity; and 
H.  That the validity of the bonds and the voters' ratification of the bonds may not be 
affected by any errors in the estimates made pursuant to paragraph F.  If the actual 
amount of the total debt service for the bond issue varies from the estimate, the 
ratification by the electors is conclusive and the validity of the bond issue is not 
affected by reason of the variance. 
SUMMARY 
This bill requires that the article submitted to the voters for a school construction 
project include a treasurer's statement outlining the total bonding capacity of the school 
administrative unit and the estimated cost of repaying the debt.  The bill also clarifies that 
any errors in the estimates provided in the treasurer's statement do not invalidate 
ratification of the article.  The bill requires that a treasurer's statement of the amount of 
indebtedness incurred, including indebtedness associated with bonds, lease agreements or 
lease-purchase agreements, must be provided when the indebtedness incurred exceeds 
$20,000.