PORTLAND (AP) – State business and labor leaders have joined Gov. John Baldacci in voicing opposition to Question 1 on the June 8 ballot. They contend the measure would hurt the state and not deliver property tax relief.

Representatives of the Maine Children’s Alliance, the Maine Innkeepers Association, UnumProvident Corp., L.L. Bean and others gathered Monday for a news conference to oppose the ballot question.

Question 1 asks: “Do you want the state to pay 55 percent of the cost of public education, which includes all special education costs, for the purpose of shifting costs from the property tax to state resources?”

If voters say yes, it would increase state aid to local schools from 43 percent to 55 percent, and that “hurts everyone,” Baldacci said. The projected annual cost of the proposal to taxpayers would be about $245 million, he said.

“If we’re going to come up with $245 million a year, certainly there are going to be some large cuts” in programs for the elderly, for children and families, and for public safety, Baldacci said.

If Question 1 passes, there’s no guarantee that cities and towns will actually cut property taxes, said Dana Connors of the Maine State Chamber. “The June 8 referendum does not require that even one penny go to property tax relief.” Most municipalities would spent much, if not all, of that new money in education or to expand other services, he warned.

Others standing with Baldacci in opposing Question 1 were Carl Leinonen of the Maine State Employees Association; Jean Gulliver of the state Board of Education; John Williams of the Maine Pulp and Paper Association; Ellie Goldberg of the Maine Children’s Alliance; and Rick Erb representing Maine nursing homes.

The referendum was spearheaded by the Maine Municipal Association. Leaders of the group, including Mechanic Falls Town Manager Dana Lee, have argued that one of the biggest causes of rising property taxes is high education costs.

Saying the state has been reneging for 20 years on its promise to pay 55 percent of local education costs, supporters say the referendum is merely forcing the state to keep its own promise.

A law passed this past legislative session aimed to increase state aid to local education over several years.

That’s not enough, said Lee, MMA vice president and chairman of Citizens to Reduce Local Property Taxes Statewide, which supports Question 1. Lee said the Legislature did not properly fund the law, which is known as “Essential Programs and Services.”

“All they’re really doing (with the new law) is re-amortizing the last broken promise. The last broken promise was a 20-year note,” Lee said. “This is a five-year note.”