Sec. 1. 20-A MRSA §15602, sub-§1, as amended by PL 1985, c. 505, §12, is further amended to read:

1. Contributions from General Fund. It is the intent of the Legislature to provide by fiscal year 2006-07 at least 55% of the cost of the total allocation from General Fund revenue sources or a percentage no less than that provided in the year prior to the year of allocation, whichever is greater.

The amount of the teacher recognition grants authorized in section 13503-A which that are paid or deemed eligible to be paid on August 15, 1986, shall must be added to the actual local operating costs expended by local units in 1986-87. The minimum amount of the cost of the total allocation from General Fund revenue sources for 1988-89 shall must be increased by the total amount expended by the State in 1986-87 for teacher recognition grants in accordance with section 13503-A and block grants in accordance with section 13509. The resulting percentage shall must be used to define the minimum percentage contribution from General Fund revenue sources in 1988-89 and subsequent years.

Sec. 2. 20-A MRSA §15602, sub-§§1-A and 1-B are enacted to read:

1-A.__Annual minimum contribution level.__Beginning in fiscal year 2001-02, the Legislature shall establish annually a minimum contribution level for the cost of the total allocation in order to achieve the 55% minimum contribution level established in subsection 1 by fiscal year 2006-07.__For fiscal year 2001-02, the minimum contribution level is 45% and, for fiscal year 2002- 03, the minimum contribution level is 47%.__In the subsequent 4 fiscal years, it is the intent of the Legislature to achieve the minimum contribution level targets established in this subsection.

A.__For fiscal year 2003-04, the minimum contribution level target is 49%.

B.__For fiscal year 2004-05, the minimum contribution level target is 51%.

C.__For fiscal year 2005-06, the minimum contribution level target is 53%.

D.__For fiscal year 2006-07, the minimum contribution level target is 55%.