AUGUSTA (AP) – A state senator from Leeds has filed legislation that counters the governor’s tax-relief package.
Sen. John Nutting, told fellow Democrats at a joint House and Senate caucus Thursday that his proposal has the backing of the Maine Municipal Association and the Maine Education Association.
Nutting and MMA lobbyist Geoff Herman said the legislation was designed to provide for the immediate implementation of an accelerated school funding proposal that statewide voters ratified in June.
Gov. John Baldacci, while pledging to boost school aid in the upcoming two years by $250 million, wants to phase in over four years the overall hike in state funding for local schools that the June ballot question envisioned.
Analysts suggest full funding right away could virtually double the state’s contribution.
Nutting said he saw a likelihood that lawmakers in the end might split the difference in some fashion.
“To me, we’re probably going to end up somewhere in between” the MMA-backed measure and Baldacci’s initiative, Nutting said.
Baldacci’s package, outlined in two bills, has already been taken up by a 15-member Joint Select Committee on Property Tax Reform, which is scheduled to hold a public hearing on the governor’s proposal Tuesday.
The joint select committee has been given until Jan. 14 to make its recommendations to the full Legislature and House and Senate leaders have said they want to see final action by Jan. 20.
Also at the caucus Thursday, Baldacci asked lawmakers to support his tax relief package. He urged his fellow Democrats to work toward building bipartisan backing for the plan.
“I’m looking down the road,” Baldacci said, noting that he will be looking to win enactment of both a two-year state budget and a bond package that will demand at least some GOP votes.
A bipartisan approach on the issue of tax reform would be best, he said, “because there’s other issues behind this one.”
During a question-and-answer session with the Democratic lawmakers, Baldacci reiterated his view that tax increases and new constitutional curbs on government spending are “the extremes” in the upcoming debate.
As an avowed opponent of new broad-based taxes and an advocate of statutory rather than constitutional spending limits, Baldacci said he anticipated success in obtaining approval for a tax relief plan “if we can drive it to the middle.”
At the same time, Baldacci said he welcomed legislative input.
“I trust the committee process,” he said, recalling his 12 years in the Maine Senate.
Baldacci says his package was designed to ensure that no Maine resident would pay more than 6 percent of income in property taxes. Toward that end, it relies on a combination of income-tied refunds and a tax deferral loan program.
As part of his plan, Baldacci is proposing a four-year series of hikes in state aid to local schools to bring the state share of school funding to 55 percent. He also wants budget caps based on average personal income growth for schools, as well as for state, local and county government.
In addition, Baldacci called for a constitutional amendment to permit municipalities to value homestead land of principal residences at current use levels.
Republican reaction to the governor’s proposal has included reservations expressed within the joint select committee and talk of the desirability of an alternative by GOP leaders.
Republican lawmakers met Wednesday to consider the issue and more discussions are expected next week.
Joining the Democratic lawmakers at Thursday’s caucus was the political independent representative from Yarmouth, Richard Woodbury, who was named by Democratic House Speaker John Richardson to serve as the House chairman of the special panel.
Herman said the MMA also planned to back legislation to address government spending. Meanwhile, the Maine State Chamber of Commerce has put forth its own tax reform plan, suggesting it might seek a referendum vote, and anti-tax activist Mary Adams is involved in another campaign.
Comments are no longer available on this story