The additional costs associated with administering requests for adjustments to state valuation due to the lowering of the threshold from 5% to 2% can be absorbed by the Department of Administrative and Financial Services, Maine Revenue Services utilizing existing budgeted resources.

There would be no fiscal impact to the operational funds of the Department of Education and the Treasurer of State for fiscal year 2002-03. Changes in state valuation would not affect the amount available for distribution but would affect the distribution of funds made from General Purpose Aid for Local Schools and from the state-municipal revenue sharing program for fiscal year 2003-04. The specific fiscal impact to school administrative units and individual municipalities can not be determined at this time.

SUMMARY

This bill reduces the threshold for requesting an adjustment to state valuation due to a sudden and severe disruption of valuation from a net reduction in valuation of 5% to 2%.