GOP SENATORS REAFFIRM TAX SHIFT ONTO LOCAL TAXPAYERS

AUGUSTA – Maine Senate Republicans reaffirmed a tax shift on to local communities to pay for teacher retirement costs. In a vote of 18 – 17, the GOP denied the Education Committee’s report to restore the state’s responsibility for paying into teacher retirement.

The measure, LD 60 “An Act To Ensure Proper Funding for Teacher Retirement,” sponsored by State Rep. Walter Kumiega, would have reversed the current mechanism from 2013, that requires cities and towns to, for the first time ever, pay for a portion of the costs.

“This measure is doing the right thing by reversing this tax shift on to our local communities,” said Democratic State Senator Rebecca Millett of Cape Elizabeth who serves on the state’s Education and Cultural Affairs Committee. “Requiring local taxpayers to shoulder this cost with no say in the management of the program is unreasonable.”

Without this change in law, school districts are facing a possible increase of 24 percent in teacher retirement costs in the upcoming fiscal year, according to the Maine Municipal Association.

“This bill is good corrective action that will ensure stable and predictable budgets for our local municipalities and property taxpayers,” said Democratic State Senator Nate Libby of Lewiston, a co-sponsor of the bill.

The House voted overwhelmingly in favor of the bill in a vote of 119 – 27. The measure will go back to the House in nonconcurrence.

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