In a loud voice, voters have demanded increased state funding for education with the intention of reducing property taxes.
A referendum passed in June dictates that the state fund 55 percent of the cost of Maine’s public schools.
Gov. Baldacci, with the consent of a Joint Standing Committee on Property Tax Reform, has moved forward with the bill LD 1, a plan that would meet the funding percentage within four years, while offering property tax relief immediately. Critics of the governor’s plan, which include many of the advocates for the referendum question, say the governor and Legislature are ignoring the will of the people because the increase would be phased in.
During a public meeting on LD 1, Rob Walker, president of Maine Education Association, said failure to fully fund 55 percent of school costs starting next year “flies in the face of voters.”
It’s a common complaint, but the criticism is unfair and an example of political hyperbole.
Voters made it clear that they do, indeed, want the state to increase its share of education funding and to reduce property tax burdens. What they did not do is stipulate how that is to be done.
The voter-initiated legislation specifically mandates that the Legislature must find the money for the law and avoid adding to the overall tax burden.
Here’s what LD 1 would do:
• Increase the homestead exemption from $7,000 to $13,000 for Maine residents, lowering property taxes.
• Expand the circuit breaker program that offers tax refunds to low- and moderate-income homeowners and renters.
• Appropriate about $10 million in transitional funds to help school districts adjust to new funding formulas.
• Provide a four-year blueprint for meeting the 55 percent funding obligation. In the first year, funding would increase from about 42 percent to about 46.5 percent, with at least 90 percent of the new money directed toward property tax relief.
The bill also includes spending caps on state, county and local governments. The caps could be overridden with a majority vote.
To immediately fund 55 percent of education would require one of two options: raising other taxes or cutting most, if not all, other Maine services.
When opponents of LD 1 attack the governor and the bipartisan Property Tax Reform Committee, which supported the bill with a 12-3 vote, for not moving fast enough, they are actually advocating for an increase in the state’s sales tax. Various proposals would increase the sales tax and broaden its range.
The original ballot question could have avoided meddling by the Legislature by including in its language a specific funding plan, be it across-the-board cuts or increased income or sales taxes. The authors didn’t do that. They didn’t want to make the tough choices necessary to find $250 million in a tight state budget. They purposefully left those decisions to the Legislature in an effort to build the broadest base of support for their idea.
When Mainers voted last June, they were asked if they wanted to increase funding for education and lower property taxes. Their answer was yes. Gov. Baldacci and a bipartisan group of lawmakers are trying accomplish that goal with LD 1, even if implementation is a bit slower than would be ideal.
Voters were not asked if they wanted to increase the sales tax to pay for it. If they had been, we suspect their answer would have been different.
In a representative democracy, we elect leaders and then trust them to make responsible governing decisions. LD 1 is a responsible plan to carry out the intent of the people without forcing a fiscal crisis or hiking other taxes.
The Legislature is expected to vote on LD 1 next week. It’s our hope that two-thirds of lawmakers will vote yes so it can take effect immediately.
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