Sec. 1. 20-A MRSA §8605, sub-§2, ¶B, as amended by PL 1995, c. 665, Pt. J, §1, is further amended to read:

B. The unit in which such a person resides must be reimbursed in accordance with chapters 606 and 606-A 606-B.

Sec. 2. 20-A MRSA §15603, sub-§26-A, ¶F, as amended by PL 1995, c. 665, Pt. J, §2, is further amended to read:

F. If for any fiscal year, the total amount appropriated for the State's share of the total allocation is less than the amount specified in the certified funding level for that year, then all subsidizable costs except as noted in subparagraphs (1) and (2) are reduced by a percentage of the original cost amounts. The reduction percentage is the smallest percentage that results in a state share of the total allocation that does not exceed the amount appropriated for this purpose, except that the reduction percentage that would ordinarily be used for operating and program costs must be reduced for the purpose of computing state subsidy for transportation operating costs as defined in subsection 29. The reduction percentage ordinarily used for transportation operating costs must be reduced by the amount necessary to provide additional state subsidy equal to $4,500,000 for this category of costs. The statewide adjustment factor under section 15654, subsection 1, paragraph B must be adjusted by an amount sufficient to provide this additional funding for program costs. The following subsidizable costs may not be reduced:

(1) Principal and interest on approved school construction costs; and

(2) Approved lease costs.

Sec. 3. 20-A MRSA c. 606-A, as amended, is repealed.

Sec. 4. 20-A MRSA c. 606-B is enacted to read:

CHAPTER 606-B

SCHOOL FINANCE ACT OF 2000

§15661.__Short title; effect

This chapter may be known and cited as the "School Finance Act of 2000."__It is effective for school funding subsidies in fiscal years that begin on or after July 1, 2000.__This chapter