| Section 24.__Limitation on growth of state budget.__The |
| Legislature shall establish a General Fund expenditure ceiling |
| that limits the growth of General Fund appropriations, excluding |
| federal funds received by the General Fund, to a percentage rate |
| equal to 2/3 of the average real personal income growth rate plus |
| 2/3 of the average forecasted inflation rate.__As used in this |
| section, "average real personal income growth rate" means the |
| average for the prior 10 calendar years, ending with the most |
| recent calendar year for which data is available, of the |
| percentage change in personal income in this State for a calendar |
| year, as estimated by the United States Department of Commerce, |
| Bureau of Economic Analysis, less the percentage change in the |
| Consumer Price Index for that calendar year.__As used in this |
| section, "average forecasted inflation rate" means the average |
| forecasted change in the Consumer Price Index underlying the |
| revenue projections developed by a revenue forecasting committee.__ |
| As used in this section, "Consumer Price Index" means the average |
| over a 12-month period of the National Consumer Price Index, not |
| seasonally adjusted, published monthly by the United States |
| Department of Labor, Bureau of Labor Statistics,__designated as |
| the "National Consumer Price Index for All Urban Consumers: |
| United States City Average."__No appropriations in excess of this |
| ceiling may be authorized during any legislative session unless |
| the Legislature, by a 2/3 vote of the entire elected membership |
| of both Houses, sets forth the dollar amount and the rate by |
| which the ceiling will be exceeded and the reasons therefor.__ |
| Twenty percent of the amount of General Fund revenues that |
| exceeds the limit on General Fund expenditures established in |
| this section must be transferred to a capital construction and |
| improvements reserve fund up to a maximum of $50,000,000.__Eighty |
| percent of the amount of General Fund revenues that exceeds the |
| limit on General Fund expenditures established in this section |
| must be transferred to a budget stabilization fund that may |
| receive transfers up to a maximum of 8% of the previous year's |
| appropriation.__Any excess amounts of General Fund revenues not |
| transferred to a capital construction and improvements reserve |
| fund or a budget stabilization fund must be used as follows:__75% |
| of the amount must be transferred to reduce the unfunded |
| liabilities of the Maine State Retirement System and 25% of the |
| amount must be transferred to a tax conformity reserve fund |
| established for the purpose of conforming tax law in this State |
| with the United States Internal Revenue Code.__In the event any |
| or all of the above obligations are satisfied, any excess amounts |
| of General Fund revenues must be returned to the taxpayers of |
| this State. |
