AUGUSTA – Gov. John Baldacci’s property tax relief plan is facing competition from both Democrats and Republicans. That has him worrying whether last year’s stalemate might happen again this year.

Too many plans for tax relief could mean there will be no consensus among state lawmakers – and no tax relief for homeowners.

One Democrat is proposing a Maine Municipal Association plan to give taxpayers more property tax relief next year – possibly by broadening the sales tax.

Republicans want to do the opposite. They favor a plan to limit spending by state, county and municipal governments and schools by amending the Maine Constitution.

With time short, Baldacci hopes to see support grow for his plan, which was largely adopted from a Maine Chamber of Commerce proposal, said his spokesman.

On Nov. 2, Maine voters defeated the Palesky tax-cap referendum overwhelmingly, noted Baldacci spokesman Lee Umphrey. “Legislative leaders have created a select committee. Now’s the time to rally around one plan,” Umphrey said.

“The governor’s created the plan to be in everyone’s best interest,” Umphrey said. “The Maine Municipal Association plan is in their own municipal interest,” he said, referring to a competing tax relief bill sponsored by Sen. John Nutting, D-Leeds.

The governor’s plan “has great momentum. We need to focus on that and get it done,” Umphrey said, adding that if something is not passed by Jan. 20, legislators may have to compete with one or more tax proposals at referendum in November.

GOP alternative

Meanwhile, House Republicans are drafting a tax relief plan of their own, which they expect to unveil next week, spokesman Jason Fortin said Friday. What they want is the state constitution amended to impose spending caps at all levels of government.

“The spending cap in the governor’s proposal can be bypassed,” Fortin said. A constitutional cap is the only way to ensure that spending does not go higher that what the cap allows, he said. And “it makes (all levels of government) live under the same rules.”

Nutting said Friday that he is sponsoring a plan favored by the MMA and the Maine Education Association to compete with Baldacci’s because he doesn’t believe lawmakers ought to change what voters approved in June.

That referendum said the state must spend more money on local education – 55 percent of total spending – which would ease the burden on property taxpayers. And, Nutting said, his tax relief offers much more help than the governor’s because he would fully implement the new funding formula next year rather than over four years, as outlined by Baldacci.

By Nutting’s calculation, the governor’s proposal would reduce a typical Androscoggin County homeowner’s tax bill by only $20 to $30 next year. “It’s minuscule,” Nutting complained. “If I went door to door telling people enacting the governor’s bold tax relief plan means your taxes will go down $24, I’d get thrown out of the house.”

How much, how soon?

Nutting’s plan would immediately increase the state share of education costs from 44 percent to 55 percent – at a cost of $240 million or more. Baldacci’s plan would take four or five years to do that, increasing state spending by only $83 million next year.

Nutting said his plan would reduce a typical homeowner’s property taxes by about $200 in the next year. The governor’s plan “is not what people voted on” in June, Nutting said.

Umphrey disagrees that the governor’s plan offers “minuscule” tax relief. His staff was working on estimates of how much relief homeowners could expect.

Mike Starn, spokesman for MMA, said the state would have to find an additional $150 million to meet the 55 percent goal for education funding next year. Although he believes there are sufficient savings to be found in the state budget, MMA plans to announce its support for broadening the state’s sales tax base, which Starn called both “narrow and volatile.”

Starn said he is “hesitant” to endorse the House Republicans’ proposed constitutional spending caps. He fears they would “straitjacket” lawmakers. Instead, as it stands now, lawmakers could be voted out of office if they don’t spend the public’s money wisely.

Maine Chamber of Commerce President Dana Connors said that although competing plans are emerging, he expects Baldacci’s plan will be successful. “We’re encouraged. There is bipartisan support.”

There’s a big difference between this year and last, Connors said. “There’s an urgency today that wasn’t there last time. The voters have spoken. The Legislature has listened carefully. Their action demonstrates a desire to make it happen. I believe they will.”