C. Forty percent after June 30, 2003 2005.

Sec. C-2. 20-A MRSA §15602, sub-§§18 and 19 are enacted to read:

18.__Tier 1 cushion in fiscal year 2003-04.__The following cushion is established for fiscal year 2003-04.

A.__A school administrative unit is eligible for a prorated share of the tier 1 cushion of $4,000,000 if the school administrative unit meets the following criteria:

(1)__The school administrative unit's fiscal year 2002- 03 mills raised for education as calculated by the department is equal to or greater than 9.97 mills;

(2)__The school administrative unit's per pupil fiscal capacity for operating costs in fiscal year 2003-04 is equal to or less than $837,548; and

(3)__The school administrative unit's state share of subsidy for fiscal year 2003-04 for operating costs and program costs, excluding the state share of bus purchases plus minimum subsidy, is less than the state share of subsidy for fiscal year 2002-03 for operating costs and program costs, excluding the state share of bus purchases plus minimum subsidy, and the fiscal year 2002-03 cushion provision under subsection 16.

19.__Tier 2 cushion in fiscal year 2003-04.__The following tier 2 cushion is established for fiscal year 2003-04.__This cushion must be calculated and distributed after distribution of the cushion set forth in subsection 18.

A.__A school administrative unit is eligible for a prorated share of the tier 2 cushion of $1,000,000 if the school administrative unit meets the following criteria:

(1)__The school administrative unit's fiscal year 2002- 03 mills raised for education as calculated by the department is equal to or greater than 9.97 mills; and

(2)__The school administrative unit's state share of subsidy for fiscal year 2003-04 for operating costs and program costs, excluding the state share of bus purchases plus minimum subsidy and the fiscal year 2003-04 initial cushion set forth in subsection 18, is