1.__Operating funds savings.__Achieve cost savings in operating funds related to administrative services; and

2.__Investment in instruction or financial aid.__Direct the use of the money saved under subsection 1 for funds related to instruction or financial aid.

§12902.__Program criteria

The Department of Administrative and Financial Services shall establish program criteria through which the University of Maine System, the Maine Technical College System and Maine Maritime Academy may demonstrate that practices have been adopted that have achieved or will achieve in a time period set by the department the savings and investments described in section 12901.__The department shall establish these criteria in consultation with:

1.__University of Maine System.__The Chancellor of the University of Maine System;

2.__Maine Technical College System.__The President of the Maine Technical College System; and

3.__Maine Maritime Academy.__The President of Maine Maritime Academy.

§12903.__Program application

Prior to the end of fiscal year 2004-05, the University of Maine System, the Maine Technical College System and Maine Maritime Academy may apply to the Commissioner of Administrative

and Financial Services for a distribution from the program.__ The commissioner, or the commissioner's designee, shall apply the criteria established under section 12902 to determine whether, and in what amount, to disburse money from the program to each entity.

Sec. OO-2. 20-A MRSA c. 608 is enacted to read:

CHAPTER 608

K-12 EDUCATION COST-SAVINGS INCENTIVE PROGRAM

§15751.__Program established