TABOR up for vote a second time

LEWISTON — Maine voters will again decide whether or not to impose strict spending caps on state government, two years after a similar measure was narrowly defeated. The proposal, known as a taxpayer's bill of rights, or TABOR, will appear as question four on the Nov. 3 ballot.

Question 4: "Do you want to change the existing formulas that limit state and local government spending and require voter approval by referendum for spending over those limits and for increases in state taxes?"

The concept is simple: State spending would be capped at 2010 levels, with annual increases allowed based on population growth and the consumer price index.

In order to increase spending beyond those limits or raise taxes, a majority of legislators and voters, via a statewide referendum, must approve. Unlike the 2006 TABOR proposal, the new one applies to spending from the General Fund, the highway fund and any other special revenue accounts.

Proponents say TABOR will give Mainers the ability to keep out-of-control state spending in check; opponents argue it will lock in recession-time spending levels that are based on budgets that have already undergone cuts. They fear the caps will result in further cuts to education and other essential services.

"What we've seen is a very, very rapid expansion of the size of government in Maine at all levels and it's piled on the taxes; it has the net effect of squeezing out the private sector that's going to provide the jobs," said David Crocker, the campaign chairman for the group TABOR NOW.

Crocker said the lack of jobs causes young Mainers to move out of state to find work.

"That's my deep concern and my kind of looming terror," he said. "I fully expect the state to go on its bumbling way if TABOR is not passed."

Crocker said TABOR merely limits spending, it doesn't dictate policy.

"TABOR doesn't micro-manage in the slightest, nor would we want to," he said. "Legislators have to set all the same priorities. They have to decide for us where to allocate the resources that they are given. And if they want more (money), then they come to us."

But that hands-off approach is part of what bugs former Gov. Angus King about the measure.

"We have a referendum every two years (already); it's called an election. Let them run and do the hard work of finding out where the cuts are," he said. "Yes, we do have to control spending and reduce taxes. But we're living in an odd time where people don't want to pay for stuff and it's unrealistic."

Phil Nadeau, Lewiston's acting city administrator, said cuts to state spending would end up impacting municipalities.

"At the end of the day, the state's going to have to balance their books largely on our backs," he said, adding that he's speaking out against TABOR on his own, not the Lewiston City Council, which has declined to take a position.

"I'm not a Chicken Little kind of guy, OK? We'll do whatever it is we'll need to do, but at the end of the day, somebody's going to be unhappy," he said.

Crystal Canney, spokeswoman for the group opposing TABOR, said statewide referendums cost between $800,000 and $1 million, according to the secretary of state's office.

"The math is not good," she said. "If the TABOR cap was in place, let's say you just wanted to spend $100,000 more. You couldn't do it without spending $1 million."

Both Canney and Nadeau pointed to Colorado, which passed a TABOR initiative in 1992, as a warning to Mainers. In 2005, Colorado voters opted to suspend the law for five years.

"If it's working, you don't go and suspend what you put in place," Nadeau said. "They needed to fix roads and they needed to do stuff with their schools."

Canney said it was the Colorado business community that backed the campaign for suspending TABOR.

No other state has passed similar state spending caps.

The Androscoggin County Chamber of Commerce is supporting TABOR, according to President Chip Morrison. Last month, the Maine State Chamber of Commerce withdrew it's support for TABOR because members were unable to reach a consensus, according to President Dana Conners.

Crocker said the opposition is exaggerating the circumstances in Colorado, pointing out that spending on education in Colorado has increased annually and it's just "slightly under the national average."

"There are streets here in the city of Portland that are worse than the streets in some provincial cities in Russia that I have visited," he added.

rmetzler@sunjournal.com

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Displaying comments, from newest to oldest

Govt2Big's picture
verified

Our state leaders have

Our state leaders have failed Maine taxpayers for too long, and it's time for a positive change with TABOR NOW! It's time for us to cut the roots of this cancerous government that's growing with no regard to how it will be paid for by our children and their children. As they say; if you're not part of the solution, you are part of the problem! THE SOLUTION: Get out and vote on Nov. 3rd:
YES on Q.2! & YES on Q.4!

LisbonBrad's picture

State rankings can be skewed

State rankings can be skewed by categories & weights used. I moved here from Maryland which could portray itself as business friendly or hostile based on the point of view of a specific group. To the Chamber it was always "the sky is falling, how can we compete with Northern Virginia as we are the 5th most taxed state in the nation?". The human service folks & teachers wanted to raise taxes because "we were the wealthiest and 5th least taxed". Each group had the stats to make their point. It all comes down to LEADERSHIP and we elect people to make those decisions in an ever changing economic environment.

jalbrecht1's picture
verified

My interpretation of one

My interpretation of one feature of the report is that Maine is property rich and income poor reflecting our age distribution and increases in property valuation over the last 20 years. Since the effective tax rate is low at 1.5%, assessment and low income (property taxes are 5.3% of income) must drive the perspection that property taxes are too high. Since neither is controllable for a large part of our population, many would fall prey to that perception. Confirms the idea that we must find another way to finance local government.
Jon Albrecht Dixfield

jalbrecht1's picture
verified

B, TABOR doesn't allow

B, TABOR doesn't allow priority judgements; doesn't allow legislative bodies to do their job. What makes you think we have "expensive programs" or programs we can't afford. Maybe (I doubt it but maybe) all the programs we have are absolutely justified but costs that could be lower are out of control because of external factors Federal government rules for example or State policies external to the program. Programs we can't afford is just a code phrase for a low priority program whatever its cost.
Jon Albrecht Dixfield

B's picture

That is why TABOR is not

That is why TABOR is not worth it. I'm saying that if you want to cap or reduce state spending, then also identify which current state funded programs should be capped and/or cut.

As for the other Excise Tax reducing initiative, they should also explain what spending should be cut when the excise tax is cut. I mean don't just tell us to cut taxes, tell us how to cut the associated spending that those taxes pay for.

Most Mainers are practical enough to understand that you can't cut taxes, without cutting services. So those who want to cut or cap taxes, should also tell us what services should be cut or capped to offset the lowered tax income.

jalbrecht1's picture
verified

LisbonBrad, Just read

LisbonBrad,
Just read Woodbury's report. Excellent work. Confirms for me that LD 1495 must be enacted and afterwards we must deal with the problem that property taxes represent the highest revenue the state and local governments receive and that it disproportionately impacts low income earners.
Jon Albrecht Dixfield

B's picture

Requiring spending caps

Requiring spending caps should be accompanied with the identification and canceling of expensive state programs that we cannot afford.

Instead of just capping spending, plan to reduce it by deciding that the state can't afford all it does and identify wasteful programs that should be cut. If people think there is waste in the government, then they should do the hard work of identifying the wasteful policies and propose the cutting of those programs and then the lowering of expenditures, and therefor taxes, by the amounts saved through eliminating those wasteful programs.

jalbrecht1's picture
verified

The facts remain even though

The facts remain even though the pro-TABOR folks will ignore them. Since TABOR I was defeated state spending has been consistent with TABOR I guidelines. Spending has been reduced. Taxes over the last 45 years have been reduced. The top Federal income tax rate has fallen from 90 to 35%. The sales tax rate last fell from 6 to 5%. Property tax rates state-wide have fallen from 4.5 to 1.5% of assessed value over the last 23 years.
There is no need for TABOR except the delusions of its supporters.
Jon Albrecht Dixfield

jalbrecht1's picture
verified

TABOR II like TABOR I is a

TABOR II like TABOR I is a trial balloon by national anti-government groups to find how they can package bad policy cutting government in half. Written in Washington by the Heritage Foundation, TABOR II is the same one-size fits all over-simplified and therefore disasterous policy. Its greatest fallacy is that government buys the same basket of goods and services that the average urban consumer does. We have no urban areas in Maine. Government doesn't buy what the average citizen buys. In times of recession government must spend more to stimulate the economy because the private sector has failed to do so. TABOR II doesn't allow this to happen. TABOR II places government in an inflexibile straightjacket based on false assumptions and bad math.
It has well earned its defeat.
Jon Albrecht Dixfield

Mac antSaior's picture
verified

Our current spending plan is

Our current spending plan is thus: Here's your budget. Spend it all so that you can justify increasing it next year. If you don't you may look like you don't need that much money. I know of outfits that go on spending sprees at the end of the fiscal year just because of that. ESPECIALLY in tough financial times, we need TABOR. It's the only thing out there that will protect the working class.

It is the undauntable thought, my friend. The one that says, "I'm right!" ~Bobby Sands

LisbonBrad's picture

“Government Waste;

“Government Waste; out-of-control spending in (Augusta/City/Town- your choice); lower taxes” are easy and simplistic phrases very often used by TABOR II supporters as proof that their referendum question deserves support. A likely visceral reaction by voters to support the referendum I think needs balance. I wonder how many will take the time to read “The Struggle for Tax Reform in Maine, 2003-2009” by economist Richard Woodbury or watch the panel discussion on the Androscoggin County Chamber’s web site? The content of both deserve consideration by all voters no matter their pre-disposition. Reviewing Woodbury’s 50+ page “discussion paper” which takes a scholarly (albeit readable) and politically neutral approach will make for a far more informed electorate.

BarrelRacer's picture

This would be bad for all if

This would be bad for all if passed. We elect official to control spending and if they are not doing it the way we want them to then people need to make it known. Call and write them, don't approve a blanket policy that will only hurt us more. The scary thing is the way it is worded, "Taxpayer Bill of Rights". It is worded in a way that even the average citizen who wouldn't support it thinks it sounds good. Don't forget to vote and please do us all a favor and VOTE NO on questions 2&4.

tron's picture

A better use for elections

A better use for elections is to elect people who think like you do. It is puzzling why some people insist on placing hurdles on government instead of sending their representatives to do the job. Granted there's alot of bait and switch, like the current Lewiston City Council who voted to support this referendum, yet did not appreciably cut any spending for the last two years. In fact they increased spending dramatically while campaigning on restraint. The right wing wackos who support this bill will NEVER say exactly what they would want cut. And Administrator Nadeau is correct, the state will force the city to make cuts, since councilors are incapable of doing so. Massive amounts of state aid has poured into the cities and yet local property taxes remain the same. A sad situation.

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