PART E

Sec. E-1. 30-A MRSA §7102, as enacted by PL 1987, c. 737, Pt. A, §2 and Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further amended by adding at the end a new paragraph to read:

The appropriation limitations set forth in section 5721-A are applicable to the appropriations and revenues of plantations.

SUMMARY

This bill establishes spending limitation systems governing state, county and local governments and school administrative units. The bill is modeled on the spending limitation system provided in an initiative proposed by the Maine State Chamber of Commerce, with some adjustments relating to the use of certain governance systems at the local, school and county levels. The bill establishes a growth allowance, based on the average real growth of total personal income, to govern the year-to-year growth of the State's General Fund appropriations, county assessments, school district assessments, the property tax commitments levied for municipal school systems and the property tax commitments levied for municipal services. For local government, the base growth allowance is adjusted by the appropriate property growth factor, which is a measure of new taxable property introduced into a municipality or multimunicipal region. Except for limited emergency situations, the Legislature may exceed its spending limit only by a 2/3 vote of both Houses. Except for emergency situations, the spending limit may be exceeded by county, school and local governments only by placing the budget before the voters at referendum, unless alternative budget adoption procedures are established by charter amendment or the adoption of a local ordinance by referendum approval. The budgets of school administrative units are exempted from the limitations to the extent those budgets, on a year-to-year basis, do not exceed a baseline relationship between the total school budget and the total essential programs and services allocation for that school administrative unit.