Sec. D-21. Calculation and transfer. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in Part B, section 1 that apply against each Highway Fund account for all departments and agencies from savings in the cost of health insurance from hospital rate adjustments and shall transfer the calculated amounts to the General Fund by financial order upon the approval of the Governor. These transfers are considered adjustments to allocations in fiscal years 2003-04 and 2004-05. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs a report of the transferred amounts no later than January 15, 2005.

Sec. D-22. Merit increases. Notwithstanding the Maine Revised Statutes, Title 26, section 979-D and any other provision of law, any merit increase, regardless of funding source, scheduled to be awarded between July 1, 2003 and June 30, 2005 to any person employed by the Executive Branch, departments of the constitutional officers and the Department of Audit may not be awarded, authorized or implemented. These savings may be replaced by other Personal Services savings by agreement of the State and the bargaining agents representing state employees.

Sec. D-23. Department of Administrative and Financial Services; lease-purchase authorization. Pursuant to the Maine Revised Statutes, Title 5, section 1587, the Department of Administrative and Financial Services in cooperation with the Treasurer of State may enter into financing arrangements related to fiscal years 2003-04 and 2004-05 for the acquisition of motor vehicles for the Central Motor Pool. The financing agreements may not exceed 4 years in duration and $5,000,000 in principal costs. The interest rate may not exceed 6%, and total interest costs may not exceed $762,000. The annual principal and interest costs must be paid from the appropriate line category allocations in the Central Motor Pool account.

Sec. D-24. Transfer of funds. Notwithstanding any other provision of law, the State Controller shall transfer $100,000 in fiscal year 2003-04 and $100,000 in fiscal year 2004-05 from the Real Property Lease Internal Service Fund Account to the unappropriated surplus of the General Fund no later than June 30th of each fiscal year to reflect savings as a result of the renegotiation of leases.

PART E