A.__If a municipality receives a net increase in funding in any fiscal year, the municipality shall reduce its property tax levy limit in that year in an amount equal to the net increase in funding.__If a municipality receives a net increase in funding in any fiscal year for which its property tax levy limit for that year cannot be adjusted, the municipality shall reduce its property tax levy limit in the following year in an amount equal to the net increase in funding.

B.__If a municipality receives a net decrease in funding in any fiscal year, the municipality may increase its property tax levy limit in that year in an amount equal to the net decrease in funding.__If a municipality receives a net decrease in funding in any fiscal year for which its property tax levy limit for that year cannot be adjusted, the municipality may increase its property tax levy limit in the following year in an amount equal to the net decrease in funding.

SUMMARY

This bill makes the following technical and clarifying changes to the state, county and municipal spending limitations enacted in 2005.

1. The bill clarifies the definition of "baseline General Fund revenue" and the treatment of education funding increases until the state share of education funding reaches 55%.

2. It provides consistency in the use of the term "appropriation limitation."

3. It corrects language describing the transfer of amounts to reserve accounts.

4. It corrects several references to the calculation of county and municipal limitations by specifying that adjustments are calculated by multiplying the prior year's limit by one plus the growth limitation factor.

5. It establishes the Director of the State Planning Office within the Executive Department as the person determining "average real personal income growth" and the annual date for