Opinion ID: 2050763
Heading Depth: 1
Heading Rank: 2

Heading: the constitutional amendment prohibiting unfunded mandates

Text: [¶ 6] The constitutional provision at issue, ME. CONST. art. IX, § 21, provides as follows: For the purpose of more fairly apportioning the cost of government and providing local property tax relief, the State may not require a local unit of government to expand or modify that unit's activities so as to necessitate additional expenditures from local revenues unless the State provides annually 90% of the funding for these expenditures from State funds not previously appropriated to that local unit of government. Legislation implementing this section or requiring a specific expenditure as an exception to this requirement may be enacted upon the vote of 2/3 of all members elected to each House. This section must be liberally construed. [¶ 7] For purposes of this case, the key words of the amendment are: [T]he State may not require a local unit of government to expand or modify that unit's activities so as to necessitate additional expenditures from local revenues.... Although the remainder of the amendment is equally important, its requirements do not come into play until this first portion of the amendment is met. Unless the State has done something to require Wells to expand or modify its activities so that Wells has to spend more local money for that expansion or modification, the remainder of the amendment is not relevant. Thus, we must determine whether the revised funding formula requires Wells to expand or modify its activities so that it has to expend more local revenue for that expansion or modification. [¶ 8] Wells argues that by changing the funding formula the State is requiring it to modify its activities. It contends that increasing its tax rate is a modification of its activities. We disagree. The State has not required Wells to expand or modify its activities. It is not being required to build a new transportation system or provide computers to all of its residents. It is not being required to expand or modify the educational program of the school district. It does not have to hire more teachers or provide new courses. Presumably such requirements would be expansions that would necessitate the town to expend additional revenues. [¶ 9] The harsh reality is that Wells' portion of the funding formula has been increased, and Wells will have to spend more money if the school budget remains as is. The reality also is that Wells controls the votes on the board of the school district. P. & S.L. 1985, ch. 93. Wells, not the State, controls the expenditures of the school district. [¶ 10] The State has not required Wells to raise taxes, and the State has not required Wells to expand or modify its activities. The revised funding formula for the school district does not violate section 21 of Article IX of the Maine Constitution. [¶ 11] Because the State has not required any action on the part of Wells that mandates an expansion or modification of its activities, the first portion of the constitutional amendment is not implicated. The remainder of the provision, therefore, is not relevant to this controversy. For that reason, we do not reach the issue of whether we can consider the manner in which the Legislature enacted the revised funding formula. Whether it was enacted by a simple majority or by two-thirds of all members carries no significance. The entry is: Judgment affirmed.