Tax and spending increases show lawmakers haven’t learned

Maine’s Taxpayer Bill of Rights was narrowly defeated at the polls in 2006. It was designed to put a longer-term focus on state spending increases that outpace our ability to pay higher and higher taxes.

It’s clear that our elected leaders in Augusta are incapable of controlling themselves because we’ve just witnessed another round of overspending and higher taxes. Whether they realize it or not, they need help from TABOR, which would have prevented Maine’s latest severe budget problems.

With TABOR, the state budget would still increase (based on population growth plus inflation) to meet the needs of Maine’s taxpayers to deliver necessary services, maintain infrastructure, have great schools and take care of Maine’s poor, elderly and disabled. TABOR would limit the excessive increases in the state’s pork-barrel spending over the last few decades that have made Maine’s working families some of the highest-taxed in America.

When TABOR generated 46 percent support at the polls, the governor and legislators responded that they heard the message loud and clear – and that reducing Maine’s tax burden and controlling the increases in state spending would be a top priority. Gov. Baldacci made a point by saying directly: “Tax relief will be the first order of business.”

Remember that?

Well, Maine is in deeper financial trouble now, but our elected leaders cannot put away their tax and spend guidebooks. Spending increased more than population growth plus inflation, and fees and taxes were increased on a wide variety of products and services.

If the state budget followed TABOR guidelines, and limited spending increases, there would still have been a shortfall because of the economic slowdown, but it would have been $45 million instead of the actual $225 million.

Plus, the fee increases and the $50 million tax increase on health insurance claims, beer, wine and soda would have been subject to the Maine voters through a referendum vote.

Beyond the what-ifs of TABOR, the inescapable problem is that Maine government spends too much money.

Based on research by the Maine Heritage Policy Center comparing private-sector and public-sector employment and compensation figures, Maine has approximately 23 percent more state employees than the average state; and the pay and benefits packages are also well above national average amounts.

Maine has too many nondisabled adults on Medicaid. Using the rationale that two of every three dollars come from Washington, D.C., decision makers in Augusta have expanded Medicaid enrollment to some 274,000 people.

This is almost 50,000 more than Maine taxpayers would support if our income eligibility standards were closer to the national averages.

Gov. Baldacci’s Dirigo Health plan is a failure.

Instead of being self-supporting after its first year, this ill-advised plan will have cost some $164 million after the first four years and covers fewer than 4 percent of the uninsured people targeted. There are still 122,000 Maine people without health insurance, and the ironic April 15 tax increase spending another $50 million on Dirigo over the next fiscal year will not make this boondoggle any more effective.

The Taxpayer Bill of Rights was about having the voters be the final word on tax increases and unsustainable spending.

By their actions, the governor and a majority in the Legislature have proven that they are addicted to unjustifiable spending increases and the higher taxes that follow. They clearly need the intervention and support from a Taxpayer Bill of Rights to keep them under control when making decisions on increased spending and higher taxes.

A new Taxpayer Bill of Rights will be on the November ballot in 2009.

Prior to that final vote of the people, the new Legislature will have the opportunity to pass the Taxpayer Bill of Rights legislation and avoid the time and expense of a statewide vote – a question for all candidates in 2008.

If the Legislature does not pass the Taxpayer Bill of Rights, there are more reasons than ever for Maine citizens to approve the measure at the ballot box.

Either way, Maine voters will get another chance to have their say, protect their wallets and choose a different future of sustainable growth and opportunity for Maine.

Tarren Bragdon is the chief executive officer of the Maine Heritage Policy Center. E-mail [email protected].