While it wasn’t a dark and stormy night, it was gloomy and tense inside Lewiston City Hall as councilors worked to finish the budget. Could we afford to replace a 23-year-old street sweeper, invest more or not invest at all in implementing the Riverfront Island Master Plan, fund implementation of the new comprehensive plan, or pave more streets?
The dilemma was stark: maintain basic services, replace old and worn-out vehicles, and pave what everyone agrees are neglected streets, or make needed investments to support our economy and enhance our quality of place?
Reality hit home. While the general economy may be improving, the city’s fiscal climate is not. We are now in the seventh year of our “great recession.”
While decisions were made and a budget adopted, black clouds remain on the horizon.
Next year, the city’s budget (excluding schools) will be $359,065 less than it was seven years ago. In comparison, the consumer price index rose 9.6 percent during the same time.
How have we managed? We have eliminated 37 positions — about 10 percent of our workforce — with reductions in all departments and at all levels. We have paid off debt, reduced how much we borrow, and refinanced what we still owe at favorable rates. We have cut spending on fleet replacement, street paving and building maintenance. We have shortened library and city hall hours. We have worked hard to become more streamlined and efficient.
Over the same time, our tax rate has gone from $25 to next year’s $27.37 — a 9.5 percent increase — virtually matching the rate of inflation.
Given the budgetary restraint shown by our elected officials, why has our tax rate increased? Shouldn’t it have stayed the same or fallen?
The state has given us little choice.
In 2009, we received $4.9 million in state municipal revenue sharing, which, by law, is supposed to distribute 5 percent of state income and sales taxes to municipalities. Next year, we expect to see only $2.6 of the $6.5 million called for by formula. That is $3.9 million less, or about $2.05 on our tax rate, and explains more than 85 percent of the tax increase since 2009.
Other state actions have also raised our property taxes: state funding for the local road assistance program cut; the homestead exemption reduced; most new business equipment exempted from the property tax; and let’s not even mention all the state mandates that rain down (the black clouds on the horizon) session after session.
And, yes, school spending has gone up. We continue to hear from some at the state level that our schools are bloated, we spend too much on education, and we have too many administrators. (Lewiston’s system administration costs are 62 percent of the state per-pupil average.)
Given this, would you believe that the state is telling us that we must spend $1,166,200 more on schools next year and raise school taxes by 54 cents or risk $2.40 in state aid for every $1 less we spend?
Remember when we passed a referendum requiring the state to provide 55 percent funding for education? Well, guess what. Next year the governor’s proposed budget calls for only 46.5 percent. Because the state isn’t paying its full share for education, we not only have to pay our part, we have to come up with the state’s shortfall as well.
So, $2.05 in lost revenue sharing and 54 cents in school taxes total $2.59 on our tax rate — 22 cents more than our rate has increased over the past seven years.
When Augusta says we are wasteful big spenders, it is not true. When Augusta says we are the ones wasting money on schools, that is not true. When Augusta says it is our choice to raise taxes, it is not true, at least if we want to maintain the basic level of services our residents expect.
And there may be more to come. The governor wants to eliminate revenue sharing a year from now in return for a property tax on certain nonprofits. The nonprofit tax is dead, so add $1.35 to our tax rate. Next year, the state will require the school department to increase our local share about the same as this year. Add 50 cents. And the state may send control of county jails back to the counties, adding another 35 cents.
In the meantime, old equipment will break down. Some streets will have to wait to be repaved. And can we really afford not to invest in our future, grow our economy, and make Lewiston a community that attracts both people and investment?
The storm clouds continue to roll in from Augusta, threatening less help and more mandates.
We need the public’s help to change direction.
In the words of Mayor Robert Macdonald, “Enough is Enough.”
Officials in Augusta need to hear that property taxes are too high and must not, cannot, go higher.
Edward Barrett is the Lewiston city administer.

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