Sec. 1. 20-A MRSA §1001, sub-§19 is enacted to read:

19.__Livable wage rates.__Beginning with the 2005-2006 school year, they shall pay all employees rates of pay that are not less than the minimum rate that provides all employees with a livable wage sufficient to meet the costs of the basic necessities of life.__The minimum hourly wage rate required by this section for 2005-2006 is equal to 185% of the annual poverty line wage level for a family of 2, as established by the United States Department of Labor, divided by 2,080 hours.__The minimum hourly wage rate required for all school years after 2005-2006 must be indexed to and increased annually by an amount equal to the increase in the Consumer Price Index determined by the federal Bureau of Labor Statistics.__The increase in the Consumer Price Index must be calculated using the Consumer Price Index - All Urban Consumers all items index for the Northeast region for the period from January 1st through December 31st that immediately precedes each subsequent school year.

Sec. 2. 20-A MRSA §15679, sub-§4, as enacted by PL 2003, c. 504, Pt. A, §6, is amended to read:

4. Estimated salary costs. The commissioner shall determine the estimated salary costs for the number of staff positions required under subsection 3. In order to calculate this amount, the commissioner, where appropriate, shall use the salary matrix pursuant to section 15677 for all staff positions in each category. The salary amounts for each year must be calculated from a base salary amount that is not less than the minimum livable wage rate for that year calculated under section 1001, subsection 19.

Sec. 3. 20-A MRSA §15679, sub-§6, as enacted by PL 2003, c. 504, Pt. A, §6, is amended to read:

6. Total salary and benefit costs for staff. The total salary and benefit costs for staff is equal to the sum of:

A. The estimated salary costs determined pursuant to subsection 4;

B. The amount, as determined by the commissioner, that equals the statewide percentage of estimated salary costs determined pursuant to subsection 4 that represents the statewide benefit costs; and

C. The substitute teacher salary costs determined pursuant to subsection 5.