Under current law, when the voters in a School Administrative District (SAD) have failed to adopt their budget by referendum, the board of directors of the SAD can decide to bring the budget to a 2nd or subsequent vote at an open meeting rather than by referendum. This bill requires school budgets to be adopted by referendum. This bill also requires that a budget proposal submitted a 3rd time may not be greater than the previous school year's budget plus an increase adjusted for the Consumer Price Index. For a budget submitted more than 3 times, the budget proposal submitted to referendum must be lower than the proposal made at the previous referendum.