An Act Making Unified Appropriations and Allocations from the General Fund
Maine Legislature, Session 132, LD 0210
Committee Amendment CA_A_HA_C_H778 (House)
Amends: 20-A MRSA §15699, 30-A MRSA §5681, 36 MRSA §5111, 36 MRSA §5403

HOUSE AMENDMENT "c "to COMMITTEE AMENDMENT "A" to H.P. 132, 
L.D. 210, "An Act Making Unified Appropriations and Allocations from the General Fund 
and Other Funds for the Expenditures of State Government and Changing Certain 
Provisions of the Law Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2025, June 30, 2026 and June 30, 2027" 
Amend the amendment by inserting after Part AAAA the following: 
'PARTBBBB 
Sec. BBBB-1. 20-A MRSA §15699 is enacted to read: 
§15699. Fund for Public Prekindergarten to Grade 12 Education 
1. Fund established. The Fund for Public Prekindergarten to Grade 12 Education, 
referred to in this section as "the fund," is established as an interest-bearing account 
administered by the department. 
2. Revenue. The Treasurer of State shall deposit all revenue collected pursuant to Title 
36, section 5111, subsection 7 from the income tax surcharge to fund education into the 
fund according to the schedule in Title 36, section 5111, subsection 7. All interest earned 
by the fund becomes part of the fund. 
3. Use of fund. The commissioner shall use the full amount of revenue deposited to 
the fund to fund public prekindergarten to grade 12 education. Revenue deposited to the 
fund must be used as additional funds for public prekindergarten to grade 12 education and 
may not be used in place of funds appropriated or allocated to meet the State's annual target 
share pursuant to section 15671. The funds must be allocated in the same manner that the 
state share under section 15671 is allocated. 
Sec. BBBB-2. 30-A MRSA §5681, sub-§5, as amended by PL 2023, c. 412, Pt. 
XXX, §1 and affected by §15, is further amended to read: 
5. Transfers to funds. Before January 1, 2025, no later than the 10th day of each 
month, the State Controller shall transfer to the Local Government Fund 5% of the receipts 
during the previous month from the taxes imposed under Title 36, Parts 3 and 8, and Title 
36, section 2552, former subsection 1, paragraphs A to F and L, and credited to the General 
Fund without any reduction, except that for fiscal years 2015-16, 2016-17, 2017-18 and 
2018-19 the amount transferred is 2%, for fiscal year 2019-20 the amount transferred is 
HOUSE AMENDMENT 
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HOUSE AMENDMENT" c,/' to COMMITTEE AMENDMENT "A" to H.P. 132, L.D. 210 
3%, for fiscal year 2020-21 the amount transferred is 3.75% and for fiscal year 2021-22 the 
amount transferred is 4.5% of the receipts during the previous month from the taxes 
imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, former subsection 1, 
paragraphs A to F and L, and credited to the General Fund without any reduction, and 
except that the postage, state cost allocation program and programming costs of 
administering state-municipal revenue sharing may be paid by the Local Government Fund. 
Beginning January 1, 2025 and ending Januazy 31, 2026, no later than the 10th day of each 
month, the State Controller shall transfer to the Local Government Fund 5% of the receipts 
during the previous month from the taxes imposed under Title 36, Parts 3 and 8 and Title 
36, section 2552, subsection 1-A, and credited to the General Fund without any reduction, 
except that the postage, state cost allocation program and programming costs of 
administering state-municipal revenue sharing may be paid by the Local Government Fund. 
Twenty percent of the amounts transferred to the Local Government Fund each month must 
be transferred to the Disproportionate Tax Burden Fund and distributed pursuant to 
subsection 4-B. 
Beginning February 1, 2026, no later than the 10th day of each month, the State Controller 
shall transfer to the Local Government Fund 5% of the receipts during the previous month 
from the taxes imposed under Title 36, Parts 3 and 8 and Title 36, section 2552, subsection 
1-A, and credited to the General Fund without any reduction, except for the reduction for 
the transfer to the Fund for Public Kindergarten to Grade 12 Education as described by 
Title 36, section 5111, subsection 7, paragraph B and except that the postage, state cost 
allocation program and programming costs of administering state-municipal revenue 
sharing may be paid by the Local Government Fund. Twenty percent of the amounts 
transferred to the Local Government Fund each month must be transferred to the 
Disproportionate Tax Burden Fund and distributed pursuant to subsection 4-B. 
Sec. BBBB-3. 36 MRSA §5111, sub-§7 is enacted to read: 
7. Income tax surcharge to fund education. An income tax surcharge is established 
and administered as follows. 
A. For tax years beginning on or after January 1, 2026, in addition to any other tax 
imposed by this chapter, a surcharge at the rate of 2% is imposed on that portion of the 
taxpayer's Maine taxable income in excess of: 
(1) For single individuals and married persons filing separate returns, $1,000,000: 
(2) For heads of households, $1,500,000: and 
(3) For individuals filing married joint returns or surviving spouses, $2,000,000. 
B. All revenue collected under this subsection must be used to fund public 
prekindergarten to grade 12 education and must be deposited each year into the Fund 
for Public Prekindergarten to Grade 12 Education established in Title 20-A, section 
15699 in accordance with this paragraph. 
(1) Prior to January 1st of each year, the bureau shall estimate the annual revenue 
to be collected from the surcharge for the immediately following calendar year. 
(2) On the first of each month, beginning on January 1, 2026, the Treasurer of State 
shall deposit 8.333% of the estimated annual total revenue from the surcharge into 
the Fund for Public Prekindergarten to Grade 12 Education. 
HOUSE AMENDMENT 
a..oS 
HOUSE AMENDMENT "c "to COMMITTEE AMENDMENT "A" to H.P. 132, L.D. 210 
(3) The bureau may adjust the monthly transfer amount once annually to account 
for any difference between the estimated collection and actual collection of 
revenue for the year in which the transfer is made and any tax years prior to that 
year. 
Sec. BBBB-4. 36 MR.SA §5160, as amended by PL 2003, c. 390, §35, is further 
amended to read: 
§5160. Imposition of tax 
The tax is imposed, at the rates provided by section 5111, including the surcharge 
imposed pursuant to section 5111, subsection 7. for single individuals, upon the Maine 
taxable income of estates and trusts. The tax must be paid by the fiduciary. 
Sec. BBBB-5. 36 MRSA §5403, sub-§8, as amended by PL 2023, c. 412, Pt. ZZZ, 
§9, is further amended to read: 
8. Personal exemption phase-out. Beginning in 2018 and each year thereafter, by 
the dollar amount of the applicable amounts specified in section 5126-A, subsection 2, 
paragraphs A, B and C, except that for the purposes of this subsection, notwithstanding 
section 5402, subsection 1-B, the "cost-of-living adjustment" is the Chained Consumer 
Price Index for the 12-month period ending June 30th of the preceding calendar year 
divided by the Chained Consumer Price Index for the 12-month period ending June 30, 
2017;and 
Sec, BBBB-6. 36 MR.SA §5403, sub-§9, as enacted by PL 2023, c. 412, Pt. ZZZ, 
§10, is amended to read: 
9. Dependent exemption tax credit amount. Beginning in 2024 and each year 
thereafter, by the dollar amount of the dependent exemption tax credit under section 
5219-SS, except that for the purposes of this subsection, notwithstanding section 5402, 
subsection 1-B, the "cost-of-living adjustment" is the Chained Consumer Price Index for 
the 12-month period ending June 30th of the preceding calendar year divided by the 
Chained Consumer Price Index for the 12-month period ending June 30, 2023. If the credit 
amount, adjusted by application of the cost-of-living adjustment, is not a multiple of $5, 
any increase must be rounded to the next lowest multiple of $57: and 
Sec. BBBB-7. 36 MR.SA §5403, sub-§10 is enacted to read: 
10. Income tax surcharge, Beginning in 2026 and each year thereafter, by the dollar 
amounts specified in section 511 l, subsection 7, paragraph A, subparagraphs (1 ). (2) and 
(3). except that for the purposes of this subsection. notwithstanding section 5402. 
subsection 1-B. the "cost-of-living adjustment" is the Chained Consumer Price Index for 
the 12-month period ending June 30th of the preceding calendar year divided by the 
Chained Consumer Price Index for the 12-month period ending June 30, 2025. 
Sec. BBBB-8. Appropriations and allocations. The following appropriations 
and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding for computer programming costs. 
GENERAL FUND 
2025-26 
HOUSE AMENDMENT 
2026-27 
HOUSE AMENDMENT "c" to COMMITTEE AMENDMENT "A" to H.P. 132, L.D. 210 
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All Other 
$0 
$155,480 
GENERAL FUND TOTAL 
$0 
$155,480 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
2025-26 
2026-27 
GENERAL FUND 
$0 
$155,480 
DEPARTMENT TOTAL-ALL FUNDS 
$0 
$155,480 
EDUCATION, DEPARTMENT OF 
Fund for Public Prekindergarten to Grade 12 Education N550 
Initiative: Allocates funds from revenues received from an income tax surcharge pursuant 
to the Maine Revised Statutes, Title 36, section 5111, subsection 7. This funding is in 
addition to funds appropriated and allocated in order for the State to meet its obligation 
pursuant to the annual target established in Title 20-A, section 15752, inclusive of 
prekindergarten funding. 
OTHER SPECIAL REVENUE FUNDS 
2025-26 
2026-27 
All Other 
$20,468,500 
$64,348,250 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$20,468,500 
$64,348,250 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
2025-26 
2026-27 
OTHER SPECIAL REVENUE FUNDS 
$20,468,500 
$64,348,250 
DEPARTMENT TOTAL-ALL FUNDS 
$20,468,500 
$64,348,250 
SECTION TOTALS 
2025-26 
2026-27 
GENERAL FUND 
$0 
$155,480 
OTHER SPECIAL REVENUE FUNDS 
$20,468,500 
$64,348,250 
SECTION TOTAL - ALL FUNDS 
$20,468,500 
$64,503,730 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT" C." to COMMITTEE AMENDMENT "A" to H.P. 132, L.D. 210 
SUMMARY 
This amendment imposes an income tax surcharge of2% on that portion of a taxpayer's 
Maine taxable income in excess of $1,000,000 for single filers and married persons filing 
separate returns, $1,500,000 for heads of households and $2,000,000 for married persons 
filing jointly or surviving spouses to fund public prekindergarten to grade 12 education and 
exempts the revenue from the surcharge from the calculation of state-municipal revenue 
sharing. The amendment establishes the Fund for Public Prekindergarten to Grade 12 
Education and requires the Treasurer of State, beginning January 1, 2026, to deposit 
monthly into the fund 8.333% of the estimated annual total revenue from the surcharge. 
Revenue transferred into the fund must be used to fund public prekindergarten to grade 12 
education in addition to, but not in place of, funds appropriated or allocated to meet the 
State's annual target for education funding. The amendment also adds an appropriations 
and allocations section. 
SPONSORED BY: ~ 
(Representative CL~ ,8.) 
TOWN: Bowdoinham 
F'ISCALNOfl UQUIIID 
(S.altatW) 
HOUSE AMENDMENT 
Approved: 06/17/25 LRL 
LD 210 
LR 2409(13) 
An Act Making Unified Appropriations and Allocations from the General Fund and Other Funds for 
the Expenditures of State Government and Changing Cert~in Provisions of the Law Necessary to the 
Proper Operations of State Government for the Fiscal Years Ending June 30, 2025, June 30, 2026 and 
June 30, 2027 
Fiscal Note for House Amendment "C! to Committee Amendment "A" ( H- 7 7 g) 
Sponsor: Rep. Cluchey of Bowdoinham 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2025-26 
$1,499,575 
$0 
$20,468,500 
($1,499,575) 
$20,389,575 
FY 2026-27 
$258,317 
$155,480 
$64,348,250 
($102,837) 
$64,342,837 
Projections 
FY 2027-28 
$125,637 
$0 
$68,922,250 
($125,637) 
$68,915,637 
Projections 
FY2028-29 
$133,950 
~o 
$74,30. 
j 
($133,950) 
$74,293,950 
This amendment imposes an income tax surcharge of 2% on the portion of a taxpayer's Maine taxable income in· 
excess of $1,000,000 if filing single; $1,500,000 if head of household; and $2,000,000 if married filing jointly or 
qualifying surviving spouse for tax years begim1ing on or after January 1, 2026. All revenue collected from the income 
tax surcharge shall be deposited into the Fund for Public Pre-Kindergarten to Grade 12 Education. This would result 
in a revenue decrease to the General Fund of $1,499,575 in fiscal year 2025-26 and $102,837 in fiscal year 2026-27. 
The amendment would also result in a revenue decrease to the Local Government Fund of $78,925 in fiscal year 2025-
and $5,413 in fiscal year 2026-27 as well as a revenue increase to the Fund for Public Pre-Kindergarten to Grade 
Education of $20,468,500 in fiscal year 2025-26 and $64,348,250 in fiscal year 2026-27. 
Additionally, the amendment includes a one-time General Fund appropriation to the Bureau of Revenue Services 
within the Department of Administrative and Financial Services of $155,480 in fiscal year 2026-27 to fund computer 
prograimning costs associated with the provisions of this bill. 
Finally, this amendment includes ongoing Other Special Revenue Funds allocation of $20,468,500 in fiscal year 2025-
and $64,348,250 in fiscal year 2026-27 to a newly established Fund for Public Pre-kindergarten to Grade 12 
Education program within the Department of Education to authorize the expenditure ofrevenues received from tht 
income tax surcharge. A balanced budget is maintained. 
LR2409(13) - Fiscal Note - Page 1 of 1