The Maine Municipal Association’s proposal does not solve the problems of funding education.

H.L. Mencken once wrote, “For every problem there is a solution that is clear, simple – and wrong.” This November, Maine voters will also face a solution that is both simple and wrong.

The “School Finance and Tax Reform Act of 2003,” placed on the ballot through a petition process organized by the Maine Municipal Association, would increase the state’s contribution to the amount of money that communities spend on public education (known as General Purpose Aid to Education or GPA) from the current 42 percent to 55 percent, with the goal of reducing local property taxes.

Maine Municipal is correct in pointing out that state law requires a contribution to local education of 55 percent. Time and again, the Legislature has waived this requirement when it approved a state budget.

Reducing property taxes is, obviously, an important goal. The property tax is the most regressive tax because it is not based on ability to pay. It is assessed regardless of the income of the property owner. While property tax relief efforts such as the “Circuit Breaker” and “Homestead Exemption” programs have been enacted, giving relief to some homeowners, these are inadequate. Something does need to be done to reform property taxes in Maine.

However, Maine Municipal’s proposal is significantly flawed. The reason that the Legislature has not funded GPA at 55 percent is because the money simply is not there. I suspect that every member of the Legislature, from all parties, would like to increase the amount that the state spends on education. However, simply wishing for more money or mandating more money does not make more money appear.

State government is faced with a number of spending priorities: transportation, education, inland fisheries and wild life, economic development, environmental protection, human services among other important areas. Creating a budget requires lawmakers to make compromises. The Legislature has significantly increased funding for GPA in recent years, but the goal of 55 percent has not yet been achieved. State government also funds a number of education-related costs, such as teacher retirement.

A new funding mechanism for schools recently placed into law known as “Essential Programs and Services” will ensure that every school district in Maine has funding for programs that are absolutely necessary for children to learn. This new effort should be given time to help reduce property taxes.

Maine Municipal’s proposal is estimated to cost state government approximately $200 million. Where will the money come from? Will we make significant cuts in funding for repairing roads and highways? Reduce the number of caseworkers who care for abused children? Trim the number of state police? Perhaps the Legislature will be forced to curtail the ways in which it supports local communities besides GPA.

There is another way to get the money than through drastic cuts in programs and services. We could significantly increase the sales tax, the income tax, or both. These options – drastic cuts in programs or large tax increases – are unacceptable. So how can we increase funding for education without Maine Municipal’s sledgehammer approach?

One option is comprehensive tax reform. The sales tax does not tax a number of services, including legal services and entertainment. Indeed, the exemptions to the sales tax are worth approximately $2 billion a year. By reducing some of these exemptions, the state could increase revenue without dramatically increasing the tax burden on Maine residents.

In broadening the sales tax base, we also might be able to lower the overall rate of the tax. There are other tax reform proposals, including consolidation of municipal services, increasing taxes on services primarily used by tourists (the meals and lodging tax for example), increasing fees and fines for various programs, among other ideas. The point is that this discussion is best left to the Legislature. Not because the Legislature has infinite wisdom, but because the legislative process would allow for the compromise and discussion necessary to find a solution to the property tax problem that would be feasible for Maine.

If the Legislature could increase funding to GPA from 42 percent to, say, 50 percent without incurring either massive tax increases or cuts in spending, wouldn’t we be better off?

Unfortunately, under the Maine Municipal proposal, there is no leeway.

Property tax reform is a problem that state government must address. However, the proposal offered by Maine Municipal would not be a wise choice for the people of Maine.

Joe Patry is a recent graduate of George Washington University in Washington, D.C. He will be attending the University of Maine Law School in the fall. He lives in Minot.