The governor’s budget proposes an historic shift onto the backs of Maine’s municipalities and property taxpayers and I urge the Legislature to reject this shift.
— The revenue sharing proposal would cut $4.1 million from Lewiston’s municipal budget. This represents 12.5 percent of our operating budget and more than $2 on our tax rate.
— Eliminating the Homestead will increase the taxes of Lewiston’s non-senior homeowners by $227.
— The transfer of business equipment from the Reimbursement program to the Exemption program will cost us $897,000.
— Those no longer eligible for the Circuitbreaker will see an average loss of $414.
In total, Lewiston could lose $5.5 million. To replace that, the city’s tax rate would have to go up by $3, adding $300 to the bill on a $100,000 home. With the loss of the homestead, that $100,000 home could see an increase of $527, or 20.4 percent next year.
The budget could be cut that much if the Police or Fire Departments were eliminated. Or keep Police, Fire and Public Works and eliminate everything else. The city obviously can’t take either of those options. But we would have to raise taxes and massively reduce services with unacceptable results for most residents.
Since 2002, the city has cut almost 20 percent of its work force. With an operating budget of about $900 per resident, Lewiston currently spends less per capita than any of the largest 10 cities in Maine.
We have succeeded in holding down costs and becoming more efficient. But we are at the breaking point. Tax increases and cuts of this size will make us less competitive.
The progress we’ve made in reinventing our economy will be jeopardized – to our detriment and that of the entire state.
We understand that this budget poses enormous challenges. The Mayors Coalition supports additional revenues at the state level to address them. Options include increasing the sales tax, raising the lodging tax, or delaying the implementation of the income tax cuts.
This budget has been balanced on the backs of Maine cities and towns. It will lead to major service cuts and tax increases for every municipality in the state.
I urge the governor to restore municipal revenue sharing and reject the other proposals that will increase the burden on property taxpayers.
Lewiston Mayor Robert Macdonald recently testified before the Legislature’s Joint Standing Committees on Appropriations and Financial Affairs and Taxation regarding the impact of the proposed state budget on the city of Lewiston and its residents. This column was drawn from that testimony.
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