Maligned for dragging its collective feet. Battered for “ignoring” the voters. Besieged by amendments, many meant to derail the plan altogether. Belittled and besmirched by skeptics.
Somehow, the Legislature built a consensus around the governor’s plan to provide more state money for education and enact property tax relief; L.D. 1 was signed into law Friday.
The passage of the legislation deserves praise for the results and the process.
Healthy bipartisan majorities in both the House and Senate voted to enact the legislation. Support fell short of the two-thirds majority that would have expedited implementation, but the accomplishment is still significant.
The law, signed by Gov. Baldacci on Friday, will increase the Homestead Exemption, shifting property taxes away from homeowners and toward businesses and second homes; expand the Circuit Breaker Program; increase education funding by $250 million in two years; and place spending caps on all levels of government. A joint resolution paired with L.D. 1 will also force a review of the Essential Programs and Services funding formula that allocates state education money to local districts.
Rallying to support the legislation and to convince wavering lawmakers, AARP organized a busload of seniors for a visit to Augusta. The Maine State Chamber of Commerce, which had proposed its own tax relief plan similar to L.D. 1, also backed the law.
There are still loud critics, who say the plan doesn’t deliver enough property tax relief and moves too slowly on increasing education funding. Most Republican lawmakers in the Sun Journal readership area rejected the law, with Reps. Robert Berube, Randy Hotham and Patrick Flood notable exceptions, while local Democrats were unanimous in their support.
Gov. Baldacci placed a lot of pressure on the Legislature, demanding quick action to avert ballot-box challenges. And the bipartisan taxation committee did yeomen’s work to build consensus, improve on the governor’s ideas and advance an affordable plan to reduce property taxes without raising other broad-based taxes.
The Maine Revenue Service estimates that the average taxpayer will save about $200 in property taxes, while families and elderly homeowners can expect significantly more relief.
While the level of relief might leave some taxpayers wanting more now, legislators – and the coalition that formed to support L.D. 1 – are taking a longer view of the taxation issue and setting their sights on reducing Maine’s overall tax burden as it compares to other states. That’s a solid approach. Maine’s tax troubles didn’t develop overnight, and they can’t be solved with one piece of legislation.
The outcome of the tax relief measure offers a good omen for the rest of the legislative session. The House and Senate, the Democrats and Republicans, were able to work together on a complicated and significant issue. The results don’t please everyone, but the players have shown they can work with one another.
Much trust was lost during the partisan wranglings last year, which were intensified by the presidential election. Some of that trust appears to have been restored, which is a good thing. The debate over the budget will likely require every bit of goodwill that has been built so far.
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