A resolution to endorse Question 1A ran into opposition.

AUGUSTA – State lawmakers who were planning to adjourn early Friday were still without a property tax relief plan late Thursday.

At 10 p.m. Thursday, legislators were continuing to meet, which meant some action was possible, but hopes were fading as different factions failed to agree.

“There just has not been movement among some of the parties,” said Sen. Neria Douglass, D-Auburn. “There are significant differences between Senate, the House and the governor right now,” she said.

In a move of desperation, about a dozen senators announced at 9 p.m. a resolution to endorse Question 1A on the June ballot, which would, within four years, force state taxpayers to spend $240 million more a year on education.

“When that much money is dumped” to municipalities, it would result in property tax relief, said Sen. Kenneth Gagnon, D-Waterville. If passed by the voters in June, next January lawmakers could improve the bill, said Sen. Arthur Mayo, R-Bath.

But, critics pointed out that the referendum does not guarantee that property taxes will be lowered, and there’s no funding plan behind the Senate resolution other than possible future income growth, surpluses and program cuts.

Sen. Michael Brennan, D-Portland, said he’s opposed to backing Question 1A. He called the referendum “flawed,” while Sen. Peggy Rotundo, D-Lewiston, said she was undecided.

“We came out with Question 1B last year because we thought 1A was a bad idea,” Brennan said.

The governor didn’t like it either. “Embracing Question 1A is not why people sent them to Augusta,” said Gov. John Baldacci’s spokesman, Lee Umphrey. Umphrey acknowledged as of late Thursday there wasn’t enough support behind any property tax relief plan.

“The governor and Legislature recognize the need for tax relief, but we have miles to go,” Umphrey said.

Doug Rooks, spokesman for House Speaker Patrick Colwell, said that endorsing the referendum was not a tax plan. The House was intending to vote later Thursday night on LD 1824, the plan to cap state, local and county spending and raise cigarette and alcohol taxes to provide for property tax relief.

The House and the Senate remained in disagreement late Thursday despite negotiations that went on throughout the day and into the night.

Senate Democrats wanted to raise the sales tax from 5 to 6 cents to provide $115 million a year for property tax relief.

No way, insisted Baldacci, saying that would be too hard on working families and Maine’s taxes were too high.

Baldacci was willing to consider raising the cigarette tax by 50 cents a pack, plus raising alcohol taxes, the plan offered by House members. Baldacci also agreed to a constitutional amendment to cap state, local and county spending to the rate of income growth, something Republicans wanted.

But Senate Democrats said they could not accept raising the cigarette tax, calling that unfair. They said the state shouldn’t pay for property tax relief by taxing an addicted, mostly poor population that rents, not owns, property.

“It feels like having Lewiston-Auburn renters pay for Falmouth’s property tax relief to me,” Douglass said.

“There’s concern that property tax relief should not be based solely on one group of people,” Rotundo agreed.

When 17 Democrat senators met with the governor Thursday, “I suggested an amusement tax on recreation,” Douglass said. “We had discussions on taxing water” as water is drawn, bottled and sold, as some states tax oil drawn from wells. But the governor didn’t like taxing water, and said he’d “reflect” on taxing amusements, Douglass said.

Later, Umphrey said the governor opposes a water tax because it would be unfair to hit one company, Poland Spring, and its 500 workers. Maine should not be putting one company at a competitive disadvantage, Umphrey said.

Democrat senators objected to a constitutional amendment on spending.

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