TOWN LEADERS APPLAUD DEMS’ EFFORT TO FULFILL FUNDING PROMISE TO MAINE TOWNS

Bill prevents skyrocketing property tax hikes on Maine families

AUGUSTA — Community leaders and town officials from across Maine gathered at the State House on Tuesday to thank lawmakers for their strong endorsement of an urgent measure to  keep the state’s funding promise to Maine communities.

LD 1762 would prevent further property tax increases for Maine communities and local property taxpayers by protecting $40 million in state funding for towns known as “revenue sharing.”  The state Senate passed the measure in a vote of 33-2; The House passed it by a vote of 120-17.

“Our towns count on this money, our property taxpayers count on us to stand up and do the right thing for the people back home and I am proud that we stuck to our obligation and did the right thing,” said Senate Majority Leader Troy Jackson of Allagash.

Governor Paul LePage has repeatedly sought to eliminate revenue sharing, including his budget proposal last year. The loss of these revenue sharing funds would result in $29.8 million in cuts to local education and a $10.8 million increase in property taxes on business. Under the LePage administration, state revenues have increased, but revenue sharing funds for towns has plummeted.

If the Legislature did not blunt cuts, funding for towns will decline 79 percent by 2015.

“When Governor LePage proposed zeroing out revenue sharing funds for Maine towns in order to foot the bill for his unpaid for tax cuts for the wealthy, Democrats pledged to fight back at every turn. I’m proud to say we kept our promise and fulfilled a commitment to our towns,” said Speaker of the House Mark Eves of North Berwick. “We stood on the right side for families, for seniors, for firefighters and police officers — for our schools, our Main streets and for our hometowns.”

The bill funds revenue sharing by tapping $21 million from dollars reserved for critical purposes, $4 million by drawing down dollars from a GOP-initiated account reserved for tax breaks for the wealthy and $15 million from new revenue, meaning revenue that was above December’s reprojection and is unappropriated.

The measure is awaiting signature from Governor LePage.

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NOTE: In recent weeks, Governor LePage has threatened to veto the measure and has also said he would hold back economic investment if the bill passed. As Mayor, LePage demanded that the state keep its promise to towns and prevent property taxes from going up.