APPROPRIATIONS/ALLOCATIONS

General Fund $8,000 $7,492,000

REVENUES

General Fund $7,500,000

This bill increases the tax anticipation note authorization limit to the limitation established in the Constitution of Maine. This bill also provides a General Fund appropriation of $7,500,000 for the estimated increase of debt service costs from a tax anticipation note issuance in fiscal year 2002-03. The increase of the General Fund cash balance will improve interest earnings and, consequently, increase General Fund revenue by $7,500,000 in fiscal year 2002-03.

This bill also includes General Fund appropriations of $8,000 and $121,392 in fiscal years 2001-02 and 2002-03, respectively, for the additional costs associated with the referenda questions submitted to the voters in June 2002 and November 2002. The additional referenda costs are offset by a $129,392 General Fund deappropriation in fiscal year 2002-03 from the amounts appropriated to Bureau of General Services Capital Improvement Reserve Fund for the architectural and engineering assessment of the Harlow Building. The reduction of funding for a portion of the assessment of the Harlow Building will be included in a proposed bond issue. If the bond issue is not passed by the Legislature and approved by the voters, the Department of Administrative and Financial Services will not have sufficient funds for the assessment.

SUMMARY

This bill strikes the limit on the tax anticipation note authority currently established at $100,000,000. In the absence of this statutory restriction, the limitation of the Constitution of Maine, Article IX, Section 14 restricts this borrowing authority to the lesser of 10% of all the money appropriated, authorized and allocated by the Legislature from undedicated revenues to the General Fund and dedicated revenues to the Highway fund for that fiscal year, exclusive of proceeds or expenditures from the sale of bonds, and 1% of the total