Sec. 2. 20-A MRSA §15654, sub-§1, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is repealed.

Sec. 3. 20-A MRSA §15654, sub-§1-A is enacted to read:

1-A.__Unit's local share percentage.__For each school administrative unit, the commissioner shall annually determine the unit's local share percentage of the per pupil guarantee.__ Except as described in subsection 2, the local share percentage of the per pupil guarantee is equal to a statewide adjustment factor established annually by the commissioner.

Sec. 4. 20-A MRSA §15657, sub-§1, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is repealed and the following enacted in its place:

1.__Fiscal capacity. The local per pupil property fiscal capacity divided by the statewide per pupil property fiscal capacity as computed by the commissioner is multiplied by:

A.__Until July 1, 2002,__a property weight of 0.85;

B.__From July 1, 2002 to June 30, 2003, a property weight of 0.90;

C.__From July 1, 2003 to June 30, 2004, a property weight of 0.95; and

D.__Beginning July 1, 2004, a property weight of 1.0.

Sec. 5. 20-A MRSA §15657, sub-§2, as amended by PL 1999, c. 401, Pt. GG, §9, is repealed and the following enacted in its place:

2.__Local median household income.__The local median household income is divided by the statewide average median household income.

A.__Until July 1, 2002, the final result is multiplied by an income weight of 0.15.

B.__From July 1, 2002 until June 30, 2003, the final result is multiplied by an income weight of 0.10.

C.__From July 1, 2003 until June 30, 2004, the final result is multiplied by an income weight of 0.05.

The department shall use local median household income data as

estimated at the fiscal year 1997-98 level until final Federal Decennial Census figures are established for the year 2000.__The fiscal year 1997-98 estimated census figures must be adjusted so that no municipality's census figure exceeds twice the state average percentage increase from fiscal year 1996-97 to fiscal year 1997-98.

This subsection is repealed July 1, 2004.

Sec. 6. 20-A MRSA §15657, sub-§3, as enacted by PL 1995, c. 368, Pt. Z, §1 and affected by §2, is amended to read:

3. Weighted relative property fiscal capacity. The results of subsection 1 and subsection 2 are added and the sum represents the weighted relative property fiscal capacity. This subsection is repealed July 1, 2004.

Sec. 7. Effective date. Those sections of this Act that repeal the Maine Revised Statutes, Title 20-A, section 15654, subsection 1 and enact Title 20-A, section 15654, subsection 1-A take effect July 1, 2004.

SUMMARY

This bill phases out over a 3-year period the consideration of local median household income and increases by an equal percentage the reliance on property values in determining the local contribution portion of the school funding formula.