Sec. 15. 20-A MRSA §15684, sub-§3 is enacted to read:

3.__Repeal.__This section is repealed July 1, 2005.

Sec. 16. 20-A MRSA §15686, as enacted by PL 2003, c. 504, Pt. A, §6, is amended to read:

§15686. Transition adjustment

For each of the fiscal years described in section 15671, subsection 7, the commissioner shall establish a transition adjustment calculated to minimize the adverse fiscal impact directly related to that may be experienced by some municipalities as a result of the phase-in of this Act. The transition adjustment for a municipality must be directly related to the phase-in of essential programs and services and the local cost share expectation method under section 15671-A of determining the local contribution to the cost of funding essential programs and services. The amount of this adjustment must decline with each successive fiscal year, and the adjustments must end no later than fiscal year 2009-10.

Sec. 17. 20-A MRSA §§15688 and 15689 are enacted to read:

§15688.__School administrative unit contribution to total cost of

funding public education from kindergarten to grade 12

1.__School administrative unit; total cost.__For each school administrative unit, the commissioner shall annually determine the school administrative unit's total cost of education.__A school administrative unit's total cost of education must include:

A.__The school administrative unit's total cost of funding essential programs and services subject to the transition percentages described in section 15671, subsection 7, paragraph A;

B.__The program cost allocation as used in chapter 606; and

C.__The debt service allocation as used in chapter 606.

2.__Member municipalities in school administrative districts or community school districts; total costs.__For each municipality that is a member of a school administrative district or community school district, the commissioner shall annually