BILL RESTORING FUNDS TO MAINE TOWNS BECOMES LAW

Legislature keeps promise to restore $40 million in revenue sharing

AUGUSTA– An urgent measure to restore $40 million in funding cuts to Maine cities and towns became law on Tuesday without Governor Paul LePage’s signature.

The strongly endorsed bipartisan bill, LD 1762,  was a top priority for Democrats, who fought back efforts by Governor LePage to eliminate revenue sharing funding for Maine communities in the state budget, which he describes as “welfare.”

“Keeping our funding promise to our towns ensures they won’t have to cut essential services, raise property taxes, or both,” said Senate President Justin Alfond of Portland. “Our communities count on this funding to keep our schools open and our streets plowed, and they count on the legislature to keep its promise and deliver these funds. Today, we have kept that promise.”

Under the LePage administration, aid to towns, or revenue sharing funds to towns, has plummeted. If the Legislature did not blunt these proposed cuts, aid to towns would decline by 79 percent in Fiscal Year 2015.

“We’ve sent a strong message to our communities and neighbors: we have their back. They can count on us to stand up for them in Augusta,”  said House Speaker Mark Eves of North Berwick. “Maine families should not have to pick up the tab for Governor LePage’s failed policies.”

The law partially funds revenue sharing by tapping $21 million from dollars the state’s budget stabilization fund, which currently has $59.7 million in reserves. It also sweeps $4 million from a GOP-initiated account reserved for tax breaks for the wealthy, and $15 million from unused projected surplus revenue.

Despite claims by Governor LePage and his allies that withdrawing dollars from the budget stabilization fund will harm Maine’s credit rating, representatives from two credit rating agencies have previously said one single act does not affect credit ratings.

In 2011, Governor LePage drew down $27 million from the state’s budget stabilization fund for a budget that included tax cuts which largely benefited the wealthy.

LD 1762 will take effect 90 days after the Legislature adjourns.

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*For a town by town list of projected revenue sharing reduction, please click here.

NOTE: As Mayor, LePage demanded that the state keep its promise to towns and prevent property taxes from going up.