C.__The targeted state and local spending for fiscal year 2007-08 is equal to the state and local spending, excluding local only debt, from fiscal year 2006-07 increased by the 3-year average percent of increase in the Consumer Price Index plus 25% of the difference between that result and 100% of the essential programs and services costs for fiscal year 2007-08 or 100% of the essential programs and services costs, whichever is less; and

D.__The targeted state and local spending for fiscal year 2008-09 and succeeding years is equal to 100% of the essential programs and services costs.

If a school administrative unit elects to exceed the limit established in paragraph A, B, C or D, the legislative body of that school administrative unit must approve or otherwise ratify that action, which may be done only by referendum in a separate article. The referendum procedures governing the school budget adoption or ratification voting must be accomplished in accordance with sections 1305, subsection 1, 1305-B and 1701-B or, for municipal school systems opting to use a secret ballot, Title 30-A, section 2528, and the article must conform to section 15690, subsection 3, paragraph B.

Sec. D-37. 20-A MRSA §15672, as amended by PL 2003, c. 712, §12, is further amended to read:

§15672. Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1. Allocation year. "Allocation year" means the year that subsidy is distributed to school administrative units.

1-A.__Base year.__"Base year" means the 2nd year prior to the allocation year.

1-B.__Bus purchase costs.__"Bus purchase costs" includes expenditures for bus purchases approved by the commissioner and made during the year prior to the allocation year.

2. Clerical staff. "Clerical staff" means full-time equivalent public school secretaries, as documented in the department's database.