By Sen. Troy Jackson
Since 1972, the state has partnered with cities and towns to give back 5 percent of all state sales and income tax revenue. This partnership is called revenue sharing. For years it has helped ease the property tax burden for homeowners and business owners and ensure towns are able to continue providing essential services, including maintaining our schools, our roads, and our police and fire departments.
While state revenues have increased under Governor LePage’s administration, aid to our towns has plummeted. Last year, Governor LePage tried to completely eliminate revenue sharing, which has amounted to a $400 million tax shift onto the backs of property taxpayers. Fortunately, the Legislature was able to restore two-thirds of the funding, but our towns are still hurting.
Last month, the Appropriations and Financial Affairs Committee heard testimony from towns all over the State of Maine about the importance of revenue sharing, and the impacts the cuts have had on them. For more than six hours, community leaders, mayors, police officers, and firefighters from towns both urban and rural told us about their struggles. These are our friends and neighbors – and they rightly fear what will happen if revenue sharing is not restored.
Among those testifying was Mike Chasse of the Presque Isle City Council, who travelled 500 miles to speak on this issue. The Presque Isle council has already had to cut police officers and firefighters, and has had to reduce hours at both City Hall and the local library. If we do not keep our promise, how many more police officers and firefighters will lose their jobs?
The Mars Hill Town Council also sent along their wishes that funding would be restored. According to the council, their local budget had remained nearly flat, yet losses in revenue sharing forced them to raise local taxes to make up the deficit. If we do not keep our promise, how much more will the taxpayers of Mars Hill have to pay?
Right now, the Legislature is considering a bill to protect $40 million in funding to our towns. If the state doesn’t keep its promise, no town will escape the choice between cutting bare-to-the bones services or raising property taxes, and many will have to do both.
If we fail to protect revenue sharing, on average Maine towns stand to lose nearly 62 percent of state funding for their local budgets. My district in Northern Aroostook County alone is estimated to lose roughly $1.6 million dollars. The last thing the people of Aroostook County need is another economic burden through higher property taxes.
My hometown of Allagash is estimated to lose almost $5,000 dollars. The town of Fort Kent would face a loss of nearly $130,000 and Madawaska would lose more than $180,000. The result of the state eroding its promise to these towns, and many others in Aroostook County, would be a property tax hike for middle class families and small businesses or a further reduction in essential services, or both.
We cannot tolerate placing any more unnecessary pressure on local taxpayers especially during these tough economic times.
Lawmakers from both sides of the aisle must put politics aside and come together to uphold the state’s funding promise to our towns. Forcing our towns and communities to raise taxes or cut essential services, or both, is simply not an option.
Sen. Troy Jackson (D-Allagash) assistant majority leader and chair of the Agriculture, Conservation, and Forestry Committee. He can be reached at either 398-4081 (home) or 436-0763 (cell), or via email at SenTroy.Jackson@legislature.maine.gov.
