1. It clarifies the statutory provisions requiring the state share to be 55% of total state and local education allocations by indicating that the percentage of state funding must be determined by the amount of funds actually provided by the Legislature.

2. It requires that the state share of the total allocation that would have been payable to each school administrative unit for fiscal year 1999-00 must be paid to each school administrative unit over a 3-year period beginning July 1, 1999; it further requires a supplemental appropriation to the general purpose aid for local schools program in fiscal year 1999-00 and fiscal year 2000-01 to fully fund 55% of the cost of the total allocation in fiscal year 1999-00.

3. It repeals the "percentage rate" subsidy reduction method from the School Finance Act of 1985 and requires that reductions in state funds be made by applying a mill rate subsidy reduction to each school administrative unit rather than a percentage rate subsidy reduction.

4. It removes the income and cost-of-living components from the distribution of funding for education under the School Finance Act of 1995, leaving relative property fiscal capacity as the only factor in determining a unit's fiscal capacity.