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Rumford school budgets would suffer if a tax cap proposal passes.

RUMFORD – If a property tax cap proposal is approved by voters statewide, Rumford couldn’t raise enough money to run the schools and the town.

That was the message Town Manager Robert Welch delivered to the Board of Selectmen during Thursday’s meeting about the initiative spearheaded by Maine Tax Action Network activist Carol Palesky.

“We couldn’t raise more than 10 mills per $1,000 valuation, which is less than the school budget share of $6.8 million,” he said.

The initiative calls for a 1 percent tax cap on property value, plus an additional amount based on a town’s debt service.

Welch said the proposal also provides no data on how county taxes would be paid.

“If this referendum goes through, there would be some hard decisions to make,” he said.

Among those choices would be the likely reduction of the town’s police force, highway crew, parks department, fire department and others municipal services by half, then billing individuals for the services used, he said.

Board Chairman Jim Thibodeau said the tax proposal would also be coupled with the elimination of the personal property tax, another proposal now before the Maine Legislature.

“This would be a disaster,” he said.

At a board meeting earlier this month, Welch said the elimination of the personal property tax would likely double the town’s tax rate if it is passed. That proposal is currently being debated in Augusta.

Selectman Jolene Lovejoy said the town should develop its budget as usual. But when that is done, the department heads should show how the functioning of their departments would be affected if the Maine Tax Action Network proposal is passed.

Selectmen are unsure whether the citizen’s initiative referendum will be voted on in June or November.

The board set several special meetings to begin the development of the 2004-05 municipal budget.

Municipal department heads will make their initial budget presentations to selectmen on at 6 p.m. March 1. On March 15 and March 22, social service agency and other special requests will be heard at 6 p.m. All meetings take place in the conference room of the Municipal Building.

The annual town meeting is scheduled for June 7.

The board agreed to sponsor an advertisement for the Rumford Historical Society’s talent show set for March 20 and March 21 at a cost of $100. They also waived the $100 use fee for the Municipal Auditorium.

The board also donated $185 to sponsor a Mountain Valley High School girl to Dirigo Girls’ State. They declined to provide a contribution to the Dirigo Music Association Fundraising Drive in neighboring Dixfield.

The board decided to look into repairing the worn, wooden chairs used in the Municipal Auditorium rather than buy new ones.

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