Sec. 1. 20-A MRSA §15905, sub-§1, ķA-2 is enacted to read:

A-2.__Beginning in fiscal year 2003-04 and in each fiscal year thereafter until fiscal year 2006-07, the commissioner shall transfer a__portion of the debt service funds that would otherwise be applied to the debt service limit to the state share of the foundation allocation that is distributed to subsidize each school administrative unit's special education costs as defined under section 15603, subsection 22.__The commissioner shall transfer debt service funds authorized under paragraph A in accordance with this paragraph:

(1)__Ten percent of the maximum debt service limit must be transferred in fiscal year 2003-04;

(2)__Fifteen percent of the maximum debt service limit must be transferred in fiscal year 2004-05;

(3)__Twenty percent of the maximum debt service limit must be transferred in fiscal year 2005-06; and

(4)__Twenty-five percent of the maximum debt service limit must be transferred in fiscal year 2006-07.

Sec. 2. Appropriations and allocations. The following appropriations and allocations are made.

EDUCATION, DEPARTMENT OF

General Purpose Aid for Local Schools

Initiative: Provides for a 25% reduction in the allocation of funds that must be applied to the debt service limit under the Maine Revised Statutes, Title 20-A, section 15905, subsection 1, paragraph A.

General Fund 2003-04 2004-05

All Other ($8,000,000) ($12,600,000)

____________ ____________

General Fund Total ($8,000,000) ($12,600,000)

Initiative: Provides for additional funds to be allocated to the School Revolving Renovation Fund for the renovation, replacement or repair of schools.