§15665.__Debt service costs subsidy

By March 31st of each year, the Legislature shall appropriate funds to subsidize debt service costs for all eligible units for the ensuing fiscal year.

1.__Default appropriation.__In the absence of timely legislative action, the debt service costs subsidy for the ensuing year must be calculated and paid by the commissioner based on the debt service costs appropriation and the debt service costs millage limit in effect for the current year.

2.__How calculated.__The debt service costs subsidy for each unit is the product of that unit's debt service costs times the state share percentage for that unit.

3.__Appropriation less than subsidy.__If the appropriation for debt service costs is insufficient to pay the subsidies calculated in accordance with subsection 2, then the subsidy to each unit eligible to receive a debt service costs subsidy must be reduced in proportion to each unit's average pupil count.

4.__Appropriation exceeding subsidy.__If the appropriation for debt service costs exceeds the amount necessary to pay the subsidies calculated in accordance with subsection 2, then the excess must be distributed to pay that portion of each unit's debt service costs that exceed the unit's debt service costs circuit breaker.__A unit's "debt service costs circuit breaker" is the amount calculated by multiplying the debt service costs millage limit times the fiscal capacity of that unit.

5.__Debt service costs millage limit.__For purposes of this section, "debt service costs millage limit" means a single statewide property tax mill rate that must be calculated each year by the commissioner to satisfy the following condition: when the debt service costs millage limit is applied to the fiscal capacity of each unit, the subsidies that result under the rules of this section must exhaust the amount appropriated by the State for debt service costs.

§15666.__State direct costs

By March 31st of each year, the Legislature shall appropriate funds to pay state direct costs for all eligible