| Be it enacted by the People of the State of Maine as follows: |
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| | Sec. 1. 20-A MRSA §15602, sub-§18 is enacted to read: |
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| | 18.__Maximum loss provision.__Notwithstanding any other | provision of this chapter or chapter 606-A, the following | maximum loss provision is established for fiscal year 2003-04 | and for each fiscal year thereafter to provide for maximum | stability of the amounts of state subsidy provided to school | administrative units through the general purpose aid for local | schools program. |
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| A.__Beginning in fiscal year 2003-04, the state share of | subsidy for each fiscal year for operating costs, program | costs excluding the state share of bus purchases and | minimum subsidy may not be less than 90% of the state | share of subsidy for the preceding fiscal year for | operating costs, program costs excluding the state share | of bus purchases, minimum subsidy and the hold harmless or | maximum loss provision actually distributed in the | preceding fiscal year. |
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| B.__Beginning in fiscal year 2003-04, if the property | fiscal capacity used to determine a school administrative | unit's fiscal capacity for each fiscal year increases from | the preceding fiscal year or if the number of pupils used | to determine a school administrative unit's subsidizable | pupil count for each fiscal year decreases from the | preceding fiscal year, then a school administrative unit | may not receive less than 90% of the state share of | subsidy that it received in the preceding fiscal year. |
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| | This bill provides for an ongoing "maximum loss" provision | for the general purpose aid for local schools program. The | bill requires that, beginning in fiscal year 2003-04 and for | each fiscal year thereafter, the Legislature provide each | school administrative unit with at least 90% of the state | share of subsidy that it received for the preceding fiscal | year for operating costs, program costs excluding the state | share of bus purchases and minimum subsidy. |
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