Cities and towns in Western Maine are planning budgets around gaps as high as $4 million — municipal revenue-sharing funds they’re not sure are going to come from the state.
In Canton, that question mark is $80,000.
In Canton, that’s a lot.
“Five-thousand dollars here is like $500,000 in the city of Auburn,” Administrative Assistant Harry Childs said Thursday.
He’ll head into town meeting on June 15 assuming the town might see about half of the $80,000. It’s a calculated risk.
Gov. Paul LePage’s proposed biennial state budget eliminates the millions of income tax and sales tax dollars shared with Maine’s cities and towns. Despite lots of wrangling, no one’s agreed to that budget or any other, and the clock is ticking.
Lewiston passed a budget in early May hoping it sees the same amount of revenue-sharing as last year, $4 million.
“When we laid off 20 people two years ago, that was to deal with a $2 million problem,” City Administrator Ed Barrett said. “Now this could be a $4 million problem.”
He has half-joked that police, or fire, or city hall, the library and recreation program would have to go. If the missing amount was absorbed by property taxes, that’s an extra $2.41 on the tax rate, an increase of $361.50 on a $150,000 home.
“I don’t think at the moment anybody knows what’s going to happen,” Barrett said. “It seems to me that there are some pretty wide gulfs in Augusta.”
The town of Durham passed a budget in early April that relied on municipal revenue-sharing collected last year, $209,000, so for now, it’s safe. Any ax would fall next year.
“We will be keeping an eye on it, for sure,” said Jeff Wakeman, chairman of the Board of Selectmen.
Lisbon Town Manager Steve Eldridge said his Town Council approved a budget last week that relies on $700,000 in those funds, a potential $2 increase in the tax rate.
“That won’t happen,” Eldridge said. “The council would cut the level of service. We’ve had that conversation already. I’m thinking the Legislature may give (LePage) something; we’re just not sure how much. Any part of that $700,000 would have an impact on us, tremendously.”
In Paris, which heads to town meeting June 15, the loss of $303,000 in revenue-sharing would raise the tax rate by $1. It’s already proposed to go up $2.50, Town Manager Amy Bernard said.
In Mexico, losing $390,000 would mean a $3 tax-rate increase.
“With that kind of money for a little town like Mexico, you’re talking major departments being eliminated,” Town Manager John Madigan said. “It’s just too much money. The people here just can’t afford it.”
Auburn City Manager Clint Deschene said the City Council is working on a budget to be approved in June that assumes the same $2 million in revenue-sharing received from the state last year. That’s $1 on the tax rate if it doesn’t come through.
“I wish I could get a good read on what’s going on in Augusta,” Deschene said. “It appears there’s a lot of possibilities.”
If need be, he anticipates a mix of new property taxes and reduced city services.
“From fire, police, public works, parks, economic development, social services, library funding, E-911 funding — every single one of them is on the table,” he said. “Nobody’s untouchable, in my opinion.”
Childs, in Canton, said his frustration lies in the uncertainty and watching the politics at play.
“The leaders of either party aren’t really listening to the towns out there,” he said. “It’s very hard; there’s no hints out there. Every day, more and more, each side is getting entrenched and the people who are hurt is the people of the state of Maine.”
If the town doesn’t receive $42,000, it could add roughly $1.20 to the tax rate.
“I don’t care what they do,” Childs said. Just do it.
Comments are no longer available on this story