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by the State Controller at the close of the fiscal year following | | the end of that fiscal year, exceed those of the previous fiscal | | year by 8% or more, on a base-to-base comparison excluding one-time | | revenue gains and losses, the tax on the sale of those tangible | | personal property and taxable services taxed at a rate of 6% on the | effective date of this paragraph shall | | subsequent October 1st, unless the Legislature takes action to | | prevent the reduction, the sales tax is at a rate of 5% or lower or | | the GPA provides 51% or less of the State's kindergarten, | | elementary and secondary school actual operating and program costs | | and debt service. |
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| | | Sec. 2. Application. If on the effective date of this Act the Maine | | Rainy Day Fund has received any funds during the fiscal year | | ending June 30, 2000, pursuant to the Maine Revised Statutes, | | Title 36, section 1811, the State Controller shall transfer these | | funds to the general purpose aid for local schools program. |
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| | | Current law requires that revenue derived from 0.5% of the | | sales tax be transferred to the Maine Rainy Day Fund for each | | month following a fiscal year in which General Fund revenue | | exceeds 8% of projection and that the following October this | | transfer be replaced with a drop of 0.5% in the rate of the sales | | tax. This law amends current law to require that: |
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| | | 1. An amount equal to that generated by 0.5% of the sales tax | | be transferred into the program for the general purpose aid for | | local schools, referred to in this summary as "GPA" rather than | | the Maine Rainy Day Fund if the GPA provides 51% or less of the | | State's kindergarten, elementary and secondary school actual | | operating and program costs and debt service; |
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| | | 2. Any funds provided to the GPA pursuant to this bill must | | be built into the GPA's base appropriation for future budget | | years; |
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| | | 3. The transfer to the GPA does not include funds dedicated | | to municipal revenue sharing; |
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| | | 4. That the tax rate may not be lowered if the tax rate is 5% | | or lower or if the GPA provides 51% or less of the State's | | kindergarten, elementary and secondary school actual operating | | and program costs and debt service; and |
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| | | 5. That any funds transferred to the Maine Rainy Day Fund | | under current law for the fiscal year ending June 30, 2000 be | | transferred to the GPA. |
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