Sec. 1. 20-A MRSA c. 606-A, as amended, is repealed.

Sec. 2. 20-A MRSA c. 607-A is enacted to read:

CHAPTER 607-A

SCHOOL FINANCE ACT OF 2002

§15761. Short title; effect

This chapter is known and may be cited as the "School Finance Act of 2002."

§15762.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Average pupil count.__"Average pupil count" is the average of pupil counts taken on the following 3 dates:

A.__October 1st of the year prior to the year of funding;

B.__April 1st of the base year; and

C.__October 1st of the base year.

2.__Base year.__"Base year" means the 2nd year prior to the year of funding.

3.__Debt service costs.__"Debt service costs," for subsidy purposes, includes:

A.__Principal and interest costs for approved major capital projects in the year of allocation, including the initial local share of school construction projects that received voter approval for all or part of their funding in referendum in fiscal year 2002-03;

B.__Lease costs for school buildings when the leases, including leases under which the school administrative unit may apply the lease payments to the purchase of portable, temporary classroom space beginning January 1, 2005, have been approved by the commissioner for the year prior to the year of allocation.__Beginning July 1, 2005 lease cost includes: