Sec. 13. 20-A MRSA §15688, sub-§1, ķA, as enacted by PL 2003, c. 712, §17, is amended to read:

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;

Sec. 14. 20-A MRSA §15689, as enacted by PL 2003, c. 712 , §17, is repealed.

Sec. 15. 20-A MRSA c. 608 is enacted to read:

CHAPTER 608

FUND FOR THE EFFICIENT DELIVERY

OF EDUCATIONAL SERVICES

§15801.__Fund for Efficient Delivery of Educational Services

1.__Establishment.__The Fund for the Efficient Delivery of Educational Services, referred to in this chapter as "the fund," is established as a dedicated, special revenue account to provide a financial incentive for voluntary collaboration among school administrative units or among one or more municipalities and one or more school administrative units to reduce the costs of delivering educational services.

2.__Fund source; nonlapsing.__The fund consists of revenues provided pursuant to section 15684 and any funds received as contributions from private and public sources.__Eligible investment earnings credited to the assets of the fund become part of the assets of the fund.__Any balance remaining in the fund at the end of any fiscal year must be carried forward to the next fiscal year, except that the maximum fund balance, less any encumbrances, at the end of any fiscal year must not exceed 150% of the revenue accrued to the fund during that fiscal year.__ Revenue in the fund in excess of the maximum fund balance, less any encumbrances, must be used to supplement, and not supplant, the distribution of general school subsidy during the subsequent fiscal year.

3.__Administration.__The fund, to be accounted within the department, must be held separate and apart from all other money, funds and accounts.__The department shall administer the fund according to the grant application review and decision process established in subsection 5.