123rd MAINE LEGISLATURE
		LD 253		LR 732(05)
	An Act To Implement the Recommendations of the Joint Select Committee on Research, Economic Development and the Innovation Economy
	Fiscal Note for Senate Amendment "      " to Committee Amendment "A"
	Sponsor: Sen. Rotundo of Androscoggin
	Fiscal Note Required: Yes
Fiscal Note
Undetermined future biennium cost increase - General Fund
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		($2,500)	($2,500)	($2,500)	($2,500)
Appropriations/Allocations
	General Fund		($2,500)	($2,500)	($2,500)	($2,500)
Fiscal Detail and Notes
	This amendment reduces the General Fund cost of the bill by $2,500 per year beginning in fiscal year 2007-08.
	As amended, this bill includes ongoing General Fund appropriations of $5,000 per year beginning in fiscal year 2007-08 to the Maine Development Foundation for the staffing and materials cost associated with the Maine Economic Growth Council developing the annual research and development budget recommendations and an annual accountability update on the State's commitment to research and development investments.
	This amendment provides that, beginning July 1, 2009, it is the intent of the Legislature that the Governor, when submitting the budget document for the 2010-2011 biennium, include a funding level for applied research and development that is the equivalent of not less than 1% of total actual General Fund revenue of the previous fiscal year and to increase that amount by not less than .02% for each successive year until the appropriation for research and development equal 3% of total actual General Fund revenue of the previous fiscal year.
	Based on the Revenue Forecasting Committee's March 2007 General Fund revenue projection for fiscal year 2008-09, 1% of total actual General Fund revenue is approximately $31.4 million dollars and 1.2% of the total General Fund revenue projected for fiscal year 2009-10 is approximately $32.5 million. Total General Fund appropriations for research and development for fiscal year 2008-09 included in Public Law 2007, c. 240, the 2008-2009 biennial budget is $27.1 million. Assuming that the General Fund appropriations for research and development included in Public Law 2007, c. 240 are for applied research and development and that there are no significant changes to the General Fund revenue projections for fiscal year 2008-09 and fiscal year 2009-10, an additional $3.7 million General Fund appropriation will be required for research and development for fiscal year 2009-10 and an additional $5.4 million will be required for fiscal year 2010-2011.
	As amended, the additional costs associated with determining minimum expenditure levels for research and development for the Governor's budget proposal to the Legislature can be absorbed by the Executive Department utilizing existing budgeted resources.
	As amended, additional costs to the Department of Economic and Community Development associated with staffing the Maine Innovation Economy Advisory Board and submitting the required progress report can be absorbed within existing budgeted resources.