Sec. 1. 5 MRSA §1665, sub-§1, as enacted by PL 1989, c. 501, Pt. P, §13, is amended to read:

1. Expenditure and appropriation requirements. On or before September 1st of the even-numbered odd-numbered years, all departments and other agencies of the State Government and corporations and associations receiving or desiring to receive state funds under the provisions of law shall prepare, in the manner prescribed by and on blanks furnished them by the State Budget Officer, and submit to the officer estimates of their expenditure and appropriation requirements for each fiscal year of the ensuing biennium contrasted with the corresponding figures of the last completed fiscal year and the estimated figures for the current fiscal year. The expenditure estimates shall must be classified to set forth the data by funds, organization units, character and objects of expenditure. The organization units may be subclassified by functions and activities, or in any other manner, at the discretion of the State Budget Officer.

Sec. 2. 5 MRSA §1665, sub-§7, as repealed and replaced by PL 1999, c. 127, Pt. A, §6 and affected by §7, is amended to read:

7. General Fund and Highway Fund revenue and expenditure forecasts. By September 30th of each even-numbered odd- numbered year, the State Budget Officer shall prepare and deliver a report to the Governor, the Legislature and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs containing a forecast of revenue and expenditures for the following biennium. The forecast must assume the continuation of current laws and include reasonable and predictable estimates of growth in revenues and expenditures based on national and local trends and program operations. General Fund and Highway Fund revenue must be forecasted by income source as provided in chapter 151-B. Expenditure forecasts for the General Fund and the Highway Fund must be forecasted on the basis of current law and assumed inflation variables related to program operations. The forecast for the General Fund and the Highway Fund must be presented in a budget fund flow statement and a comparative statement showing each income source for revenue projections and expenditure estimates for each major program category.

Sec. 3. 5 MRSA §1666, first ¶, as amended by PL 1993, c. 707, Pt. R, §1, is further amended to read:

The Governor-elect or the Governor, with the assistance of the State Budget Officer, shall review the budget estimates, altering, revising, increasing or decreasing the items of the