| 1. State and local partnership. The State and each local |
| school administrative unit are jointly responsible for |
| contributing to the cost of the components of essential programs |
| and services described in this chapter. Except as otherwise |
| provided in this subsection, for each fiscal year, the total cost |
| of the components of essential programs and services may not |
| exceed the prior fiscal year's costs multiplied by one plus the |
| average real personal income growth rate as defined in Title 5, |
| section 1665, subsection 1, except that in no case may that rate |
| exceed 2.75%.__For fiscal years commencing after the state tax |
| burden ranks in the middle 1/3 of all states, as calculated and |
| certified by the State Tax Assessor, the total cost of the |
| components of essential programs and services may not exceed the |
| prior fiscal year's costs multiplied by one plus the average real |
| personal income growth rate as defined in Title 5, section 1665, |
| subsection 1.__The Legislature, by an affirmative vote of each |
| House, may exceed the limitations on increases in the total cost |
| of the components of essential programs and services provided in |
| this subsection, as long as that vote is taken upon legislation |
| stating that it is the Legislature's intent to override the |
| limitation for that fiscal year. The state contribution to the |
| cost of the components of essential programs and services, |
| exclusive of federal funds that are provided and accounted for in |
| the cost of the components of essential programs and services, |
| must be made in accordance with this subsection: |