AUGUSTA (AP) – The Maine State Chamber of Commerce is sitting out the debate on a tax cap referendum – for now.

Maine State Chamber of Commerce President Dana Connors said he has no immediate plans to join the governor’s coalition opposed to a Californian-style property tax cap.

“We’re just not there yet,” he said. “I am not at this point joining a coalition or recommending that we do. We need to get the issue fully analyzed for our members and let the facts speak for themselves.”

With 1,300 members, the chamber has been a major player and fund-raiser in two unsuccessful attempts to defeat the Maine Municipal Association’s school funding initiative, opposed by Gov. John Baldacci and approved by the voters June 8.

Upon learning Question 1 had prevailed, the governor promised to work with the Legislature to implement the measure, which requires the state to increase its share of local education costs from about 43 percent to 55 percent.

Baldacci also urged those on both sides of Question 1 to unite behind him to crush the tax cap plan advanced by the Maine Taxpayers Action Network.

The citizen initiative would limit property taxes to $10 per $1,000 of valuation. Maine’s town and city managers claim local revenues would be cut in half under the plan.

Connors’ decision to keep the chamber on the sidelines of the tax cap debate, at least for now, represents a setback for the governor and others eager to create a political action committee and begin the accompanying fund raising.

Baldacci spokesman Lee Umphrey said Monday he understood Connors’ reasoning. He said the State Planning Office is pulling together information about the tax cap’s impact.

Umphrey said he hopes voters will let the governor take a crack at reducing taxes instead of adopting the referendum.

“We’ve promised the voters that property tax relief will happen,” he said.

AP-ES-06-16-04 0904EDT