PART A

Sec. A-1. 5 MRSA §1664, last ¶, as enacted by PL 2003, c. 451, Pt. X, §8, is repealed and the following enacted in its place:

The total General Fund appropriation for each fiscal year of the biennium, other than transfers of unallocated surplus or expenditures constituting direct payments to taxpayers to reduce their tax liability, may not exceed the General Fund appropriation of the previous fiscal year multiplied by a growth factor.__For purposes of this paragraph, the growth factor applicable to fiscal years following the effective date of this paragraph is the base growth factor, defined as the following sum: one plus the average real personal income growth rate, as defined in section 1665, subsection 1, which rate may not exceed 2.75%.__For fiscal years commencing after such time as the state tax burden ranks in the middle 1/3 of all states, the growth factor must become the personal income growth factor.__The personal income growth factor is one plus the average percent change in personal income in this State for the prior 10 calendar years, ending with the most recent calendar year for which data are available, as estimated by the United States Department of Commerce, Bureau of Economic Analysis.__For purposes of this section, "state tax burden" means the total amount of state and local taxes collected during the calendar year concluding on the preceding December 31st, as calculated by the State Tax Assessor, divided by the total personal income of all residents of the State during that same calendar year as calculated by the Bureau of Economic Analysis.__The State Tax Assessor shall undertake this calculation no less often than once per year.__For any fiscal year thereafter, if the State Tax Assessor determines that the state tax burden has increased to the highest 1/3 of all states, the growth factor for the following fiscal year must be the base growth factor.__In all other fiscal years when the state tax burden ranks in the middle 1/3 of all states, the growth factor must be the personal income growth factor.__The appropriation limitation set forth in this paragraph may be exceeded only in an amount necessary to comply with a court order or decree or to pay costs associated with extraordinary events outside the control of the Governor or Legislature, such as natural disasters, severe weather events, acts of God, acts of terrorism, fire, war and riots, but in no event may such events include changes in economic conditions, revenue shortfalls or increases in salaries or benefits; however, for purposes of calculating total General Fund appropriations for any future fiscal year, any appropriations made pursuant to this sentence