Sec. 1. 20-A MRSA §5806, sub-§2, as amended by PL 1987, c. 463, is further amended to read:

2. Maximum allowable tuition. The maximum allowable tuition charged to a school administrative unit by a private school shall be is the rate established under subsection 1 or the state average per public secondary student cost as adjusted, whichever is lower, plus an insured value factor. The insured value factor shall be computed by dividing 5% of the insured value of school buildings and equipment by the average number of pupils enrolled in the school on October 1st and April 1st of the year immediately before the school year for which the tuition charge is computed. It may not exceed 10% of a school's legal tuition rate per student in any one year beginning with the 1988-89 school year.

For the 1988-89 school year only the state share of the increase in the insured value factor shall be paid in the year of allocation.

Sec. 2. 20-A MRSA §15603, sub-§8, ¶C, as amended by PL 1997, c. 787, §7, is repealed.

Sec. 3. 20-A MRSA §15603, sub-§26-A, ¶C, as enacted by PL 1993, c. 410, Pt. F, §15, is amended to read:

C. "Debt service costs" includes the following:

(1) Principal and interest on approved school construction costs as described in subsection 8, paragraph A; and

(2) Approved lease costs as described in subsection 8, paragraphs B and E; and.

(3) Insured value factor costs as described in subsection 8, paragraph C.

Sec. 4. 20-A MRSA §15603, sub-§26-A, ¶F, as amended by PL 1995, c. 665, Pt. J, §2, is repealed and the following enacted in its place:

F.__If, for any fiscal year, the amount appropriated for the State's share of the total operating costs allocation is not equal to 55% of the total operating costs allocation, the percentage of the local share of operating costs must be increased to the level required to maintain the total