Sec. AAAA-6. 20-A MRSA §15680, sub-§4, as enacted by PL 2003, c. 504, Pt. A, §6, is repealed.

Sec. AAAA-7. 20-A MRSA §15681, sub-§5, as enacted by PL 2003, c. 504, Pt. A, §6, is repealed.

Sec. AAAA-8. 20-A MRSA §15681-A, sub-§3, as amended by PL 2005, c. 12, Pt. UU, §3 and affected by §§12 and 13 and Pt. WW, §18, is repealed and the following enacted in its place:

3.__Transportation costs.__For fiscal year 2006-07, the commissioner, using information provided by a statewide education policy research institute, shall establish for each school administrative unit a predicted per-pupil transportation cost as defined in section 15672, subsection 22-A.__The established predicted per-pupil transportation cost multiplied by the number of the school administrative unit's resident students for each school administrative unit must be no less than 90% of the most recent year's reported net transportation expenditures.__ Beginning in fiscal year 2007-08, and for each subsequent fiscal year, the per-pupil transportation costs for each school administrative unit are its predicted per-pupil transportation cost for the most recent year adjusted by the Consumer Price Index or other comparable index, except that the established predicted per-pupil transportation cost multiplied by the number of the school administrative unit's resident students for each school administrative unit must be no less than 90% of the most recent year's reported net transportation expenditures.__The commissioner shall develop an appeals procedure for established per-pupil transportation costs for school administrative units;

Sec. AAAA-9. 20-A MRSA §15682, as amended by PL 2005, c. 2, Pt. D, §46 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is further amended to read:

§15682. Regional adjustment

The commissioner shall make a regional adjustment in the total operating allocation for each school administrative unit determined pursuant to section 15683. The regional adjustment

must be based on the regional differences in teacher salary costs within labor market areas in the State, as computed by a statewide education policy research institute, and must be applied only to appropriate teacher salary and benefits costs as calculated under section 15678 and salary and benefit costs of other school-level staff who are not teachers as calculated under section 15679. Beginning in fiscal year 2006-07, and at least every 2 years thereafter, the commissioner, using information provided by a statewide education policy research institute, shall review the regional adjustment amounts under this section and shall submit any recommended changes to the state board for approval.

Sec. AAAA-10. 20-A MRSA §15683, sub-§1, ¶F, as enacted by PL 2005, c. 2, Pt. D, §47 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is amended to read:

F. An isolated small unit adjustment. A school administrative unit is eligible for an isolated small school adjustment when the unit meets the size and distance criteria as established by the commissioner and approved by the state board. The amount of the adjustment is the result of adjusting the necessary student-to-staff ratios determined in section 15679, subsection 2, the per-pupil amount for operation and maintenance of plant in section 15680, subsection 1, paragraph B or other essential programs and services components in chapter 606-B, as recommended by the commissioner.

Sec. AAAA-11. 20-A MRSA §15686, sub-§2 is enacted to read:

2.__Adjustment in fiscal year 2006-07.__A school administrative unit is eligible for a transition adjustment in fiscal year 2006-07 to mitigate a significant increase in state- certified property valuation according to the provisions of this subsection.

A.__A school admistrative unit is eligible under this subsection if it meets the following tier 1 criteria:

(1) The school administrative unit's state subsidy for fiscal year 2006-07, including the transition adjustment under this section, is less than the state subsidy the school administrative unit received in fiscal year 2005-06, including transition adjustments and adjustments for the decline in debt service; and

(2) The school administrative unit's state-certified valuation's increase from 2004 to 2005 is greater than