As the area’s primary economic development agency, the Lewiston-Auburn Economic Growth Council wishes to go on record stating it has serious reservations about the Taxpayer Bill of Rights’ impact on sustainable growth and economic development.



Municipalities occasionally need to make critical investments in order to attract new businesses or help existing companies grow. From building new roads to expanding sewer and water lines, municipalities need to be prudent stewards of their communities’ infrastructure.



Communities like Lewiston and Auburn must ensure they can compete with much larger metropolitan areas vying for economic growth.



When it comes to economic development, every situation is different. Every situation requires flexibility — and often, a municipal investment — of some kind. After all, wouldn’t it make sense for a city to spend $100 to make $10,000?



Assuming the transaction is ethical, thoughtful, and fiscally prudent, most people would answer “yes.”



However, if TABOR were enacted, it would bind the hands of economic development practitioners in Lewiston, Auburn, and most every other Maine community engaged in seeking economic growth.



TABOR allows municipal expenditures to increase only by using one of two formulas, whichever is lower: either the percentage change in assessed value, or the percentage change of inflation adjusted by population.



Under TABOR, a community would have to consider turning down a new business relocation that would increase municipal expenditures over the TABOR limit.



As senseless as it sounds, even though the city might gain millions in investment and new revenue, TABOR is concerned largely with preventing expenditure increases.



Quite simply, making essential expenditures year to year would be nearly impossible under stringent TABOR formulas.



TABOR supporters point out that communities can circumvent the spending restrictions after a two-thirds vote of the city council (or similar governing body) and a voter referendum.



However, here’s the rub: companies needing to make quick business decisions in a predictable climate won’t likely wait it out several months to determine the results of a citizen’s initiative not when countless other communities from New London, Conn., to London, England eagerly want these same jobs and investments.



Since 2000, well over $400 million of new investment has occurred in the Twin Cities largely through public and private investments. Our economy is now more diverse than ever, made up of robust industries such as health care, high-precision manufacturing, telecommunications, financial services, and transportation and logistics.



These industries are thriving because business leaders took calculated risks to invest here. A handful of examples include Oxford Networks, the Wal-Mart distribution center, Tambrands, Angostura, Formed Fiber Technologies, Safe Handling, the Hilton Garden Inn Auburn Riverwatch, Elmet Technologies, and a number of banks.



Will these businesses stay and grow and will new businesses come — if city leaders don’t have the flexibility to make essential public infrastructure investments?



The LAEGC Board of Directors sees the states tax burden as a serious issue that is detrimental to business attraction. It requires immediate attention.



We wish to collaborate on an alternative plan with our municipal partners, our sister corporations (the Lewiston Development Corporation, Auburn Business Development Corporation, and Lewiston-Auburn Railroad Company), the Androscoggin County Chamber of Commerce, the Maine State Chamber of Commerce, and the business community to unearth a more thoughtful solution.



The LAEGC Board feels strongly that the state of Maine needs to adopt policies that positively impact our future, while leaving municipalities with the flexibility necessary to conduct economic development activities.



We feel TABOR is flawed and would tie the hands of the state’s community leaders seeking smart economic growth, new investment, and new jobs.



Lucien B. Gosselin is president of the Lewiston-Auburn Economic Growth Council.