A.__Thirty-two percent to the stabilization fund;

B.__Thirty-two percent to the Retirement Allowance Fund established in section 17251; and

C.__Sixteen percent to the Reserve for General Fund Operating Capital.

2.__Additional transfer.__At the close of each fiscal year, the State Controller shall transfer from the unappropriated surplus of the General Fund to the stabilization fund an amount equal to the balance remaining of the excess of total General Fund revenue received over accepted estimates in that fiscal year that would have been transferred to the Reserve for General Fund Operating Capital pursuant to paragraph C had the Reserve for General Fund Operating Capital not been at its statutory limit of $50,000,000.

3. Exceptions; stabilization fund at limit.__If the stabilization fund is at its limit of 12% of General Fund revenue of the immediately preceding year, then amounts that would otherwise have been transferred to the stabilization fund pursuant to subsections 1 and 2 must be transferred to the Tax Relief Fund for Maine Residents established in section 1518-A.

Sec. A-6. 5 MRSA §1664, last ¶, as enacted by PL 2003, c. 451, Pt. X, §8, is amended to read:

The total General Fund appropriation for each fiscal year of the biennium in the Governor's budget submission to the Legislature may not exceed the General Fund appropriation of the previous fiscal year multiplied by one plus the average real personal income growth rate, as defined in section 1665, subsection 1, plus the average forecasted inflation rate limitation established in section 1534. For purposes of this paragraph, "average forecasted inflation rate" means the average forecasted change in the Consumer Price Index underlying the revenue projections developed by the Revenue Forecasting Committee pursuant to chapter 151-B. This appropriation limitation may be exceeded only by the amount of the additional costs or the lost federal revenue from the following exceptional circumstances: unfunded or under-funded new federal mandates;