In Maine, the state has a longstanding tradition of supporting cities and towns through revenue sharing. Since 1972, the state has partnered with municipalities to return five percent of all state sales and income tax revenue to local governments.
Revenue sharing has become a critical source of funding that municipalities can depend on to provide essential services. This money is allocated to local governments to fund local roads, K-12 education, law enforcement and fire prevention, and the general operation of local governments.
By funding essential services, revenue sharing helps stabilize property taxes, limiting the financial burden on the property taxpayer.
In the Legislature, we know how important this promised funding is to our districts. Without this funding, towns are forced choose between eliminating essential services and increasing property taxes, or do both. Maine families and communities already work hard to make ends meet, they do not need any additional, unnecessary financial burdens. This is why it is imperative that we keep our funding promises to our towns.
Over the last four years [FY 2012 – FY 2015], Governor LePage proposed cutting $406.7 million from revenue sharing, which would have cut nearly 73 percent from the fully funded amount of $558.9 million. Democrats in the Legislature foiled Governor LePage’s attempts to pass these cuts and prevented him from eliminating revenue sharing altogether.
In response to Governor LePage’s proposed cuts, community leaders and essential town service providers from all over the state travelled to the State House to save revenue sharing. Police officers, firefighters, city councilors and community leaders came to fight for their communities. Many towns were already struggling, operating with bare minimum services and raising property taxes, having already cut police officers and firefighters. Towns simply cannot operate without any revenue sharing.
Instead of responding to the pleas of hard-working Mainers and restoring full funding to revenue sharing, Governor LePage and his Republican allies had a different agenda.
The Democrats in the Legislature listened and fought back on behalf of our towns to defend and restore these funds. In fact, the Democrats wanted to restore revenue sharing to 100 percent but Governor LePage and his Republican allies forced a cut of $242.8 million. With the constant threat of Governor LePage’s veto pen and push-back by his Republican allies, the Democrats were forced to accept the cuts.
Maine towns and families have spoken and Governor LePage and his Republican allies need to hear them. Instead of proposing income tax cuts that benefit the top five percent of Mainers, the Governor needs to lookout for all Mainers and support our cities and towns. The Governor, however, repeatedly refers to Revenue Sharing as “welfare,” when it is actually state law.
The Democrats in the Legislature worked hard with our Republican colleagues and together and were able to restore nearly $10 million to our district. This is a step in the right direction but we need to continue to fight for full funding of revenue sharing.
However, under the promised full funding of revenue sharing, our district should have received nearly $17.5 million over the past four years.
Our cities and towns are the backbone of our great state. We made a promise to them and we need to keep our promise. Forcing our municipalities to choose between eliminating essential services and raising taxes, or both is inexcusable. The people have spoken and their government needs to listen.
Sen. Troy Jackson (D-Allagash is majority leader of the Maine Senate. He can be reached at either 398-4081 (home) or 436-0763 (cell), or via email at SenTroy.Jackson@legislature.maine.gov.
