Sec. 1. Transition adjustments. The following transition adjustments apply to eligible school administrative districts and community school districts.

1. For fiscal year 2005-06, eligible school administrative districts and community school districts must receive transition adjustments to the member municipalities' local contributions and the districts' state contributions.

A. A school administrative district or community school district is eligible for these adjustments if it meets the following eligibility criteria.

(1) One or more member municipalities, but not all the district's member municipalities, have a local contribution that is below the 8.26 mill expectation.

(2) A member municipality's local contribution pursuant to the Maine Revised Statutes, Title 20-A, section 15688 is 5% greater than that municipality's local share would have been under its existing local cost-sharing formula.

B. A school administrative district or community school district that meets the eligibility criteria in paragraph A must receive a transition adjustment to the state contribution equal to the following.

(1) For each municipality in the district that meets the eligibility criteria in paragraph A, the sum of each municipality's special education allocation as determined in paragraph D multiplied by 0.25.

C. A school administrative district or community school district that meets the eligibility criteria in paragraph A must have its local contribution adjusted as follows.

(1) For each municipality in the district that meets the eligibility criteria in paragraph A, the municipality's local contribution as determined pursuant to Title 20-A, section 15688 must be reduced by an amount equal to the municipality's special education allocation as determined in paragraph D multiplied by 0.25.

D. Each member municipality's special education allocation is the special education allocation pursuant to Title 20-A,