§6202.__Local and county government growth rate management system

1.__Compliance with budget cap.__Except as otherwise provided in subsection__2, the budget adopted by a local taxation authority may not exceed the adjusted annual growth rate.

2.__Determination of compliance with adjusted annual growth rate.__Determination of whether a budget proposed for adoption by a local taxation authority exceeds the adjusted annual growth rate must be made as follows:

A.__The proposed municipal services appropriation is considered to comply with the annual adjusted growth rate if it is no greater than the municipal services appropriation for the previous fiscal year as adjusted by the average real personal income growth rate; and

B.__The proposed county budget is considered to comply with the annual adjusted growth rate if the total amount apportioned to municipalities under section 706 for the fiscal year is no greater than the total amount apportioned to municipalities under section 706 for the prior fiscal year as adjusted by the average real personal income growth rate.__For purposes of this chapter, each municipality's county tax appropriation is deemed to comply with the annual adjusted growth rate.

3.__Noncompliance due to exceptional circumstances; disclosure of information regarding noncompliance.__The budget proposed for adoption by a local taxation authority may exceed the adjusted annual growth rate if:

A.__The proposed budget exceeds the adjusted annual growth rate due to exceptional circumstances;

B. The following information is printed clearly near the title on the proposed budget document's initial page:

(1)__A statement that the proposed budget does not comply with the adjusted annual growth rate; and

(2)__A description of the exceptional circumstances that cause the proposed budget to exceed the adjusted annual growth rate; and