TABOR take two
By David Harry
Staff Writer
Three years after voters rejected a measure to cap state and local tax increases, backers of a similar question say it is more needed than ever.
Opponents of a second Taxpayer Bill of Rights, including the South Portland, Scarborough and Cape Elizabeth town councils, say the measure is flawed because it includes increases in state highway spending and because state-mandated spending caps enacted by LD 1 in 2005 are already effective.
Statewide, the first TABOR question was supported by about 45 percent of the voters in 2006. Locally, the measure was approved by 52 percent of Scarborough voters but did not pass muster with voters in Biddeford, Cape Elizabeth, Kennebunk, Kennebunkport, Old Orchard Beach, Saco and South Portland.
But according to Tarren Bragdon, chief executive officer of the Maine Heritage Policy Center, TABOR II needs to pass because of a lack of meaningful tax reform and an increase in overall government spending above the cap limits the referendum will establish, “The beauty is that voters have the say,” he said.
The center is working to get the referendum passed, but the measure was written by staff at Maine Leads, described on its Web site as a “nonprofit, non-partisan action and advocacy group.”
Maine Leads staff also wrote Question 2, which seeks to reduce vehicle excise taxes and exempt hybrid and energy efficient vehicles from the state sales tax and the first three years of excise taxes.
Scarborough Town Manager Tom Hall said the effects of both questions passing could be drastic.
“If both pass, it is really doomsday,” Hall said.
Bragdon disputes the idea that letting voters decide on budget and tax increases automatically means cuts in municipal services.
“The claims about gutting services are lies,” Bragdon said.
Martin Sheehan, director of communications for the policy center, asks voters to take a closer look at organizations and governing boards opposed to TABOR II and reducing the vehicle excise tax.
“The opposition to TABOR and the excise tax are people who are receivers of tax dollars,” he said.
A key distinction in the current referendum question reduces the majority needed to pass a tax increase from two-thirds to a simple majority of voters.
A second change in TABOR II has eliminated the requirement to vote on tax increases to pay for local school budgets. The provision was eliminated because the school district consolidation act passed by the Maine Legislature in 2007 mandates local votes on school budgets.
Another tax increase targeted by the question is the annual increase in the gasoline tax that now is adjusted each year with the rate of inflation.
If passed, Question 4 will establish a state fund comprised of budget surpluses to offset future increases as well.
Sheehan said the overriding philosophy of TABOR II is that government should grow at a rate taxpayers can afford. Voters also need a stronger voice in setting spending decisions, he said.
The need for TABOR II is based on increases of almost $300 million in state taxes from 2006 through the 2011 fiscal year and the addition of 3,400 new public employees in the state this decade – despite the loss of more than 13,000 private sector jobs, Sheehan said. The center also cites increases in local tax commitments for the need to extend TABOR to towns and cities.
South Portland Finance Director Greg L’Heureux said passing TABOR II could complicate future bond questions already decided by voters. This is because while the bond vote might be approved, future budget increases to pay for bond commitments might also require votes.
The tax commitment in South Portland to pay for government services has increased from $44.64 million in 2000 to $55.23 million this year, according to data presented at the policy center Web site.
That 23 percent increase in the property tax commitment is less than seen in Cape Elizabeth, where the property tax commitment was $13.61 million in 2000 and is now $23.07 million.
In Scarborough, the property tax commitment has increased from $24.17 million in 2000 to $42.36 million. Hall said the town council has worked hard to limit spending increases and, in the last three years, budgets have grown by 2 percent or less.
But Hall said holding the line has been made easier with health insurance premiums remaining stable and employees forgoing pay raises.
Sheehan said that should be expected in hard times because the public sector must recognize limits as residents and businesses also cut back.
Hall said he would like to see tax reform that provides more options in levying local revenue. Property and excise taxes are the primary ways towns and cities raise money.
“Property tax is arguably the worst and bears no relationship for someone’s ability to pay it,” Hall said.
Bragdon said the discussion should first center on spending instead of taxation methods.
The opposition of South Portland councilors to TABOR II and the excise tax question led to a complaint by David Crocker of the TABOR Now campaign to the Maine Commission on Government Ethics and Election Practices this week because of a flyer included with South Portland property tax bills on the vote against the referendum questions.
Crocker has asked the commission to investigate whether the flier violate campaign finance laws because the city has not registered as a ballot question committee that should submit financial records for public review.
Sheehan said the fliers are also unfair.
“You can’t have government telling people how to vote,” Sheehan said.
South Portland City Manager James Gailey said flyers were included in 9,300 tax bills sent to residents last week at a cost of $564, well below the $5,000 spending threshold required for registration.
The flier notes the city council opposition to questions 2 and 4 and lists two bullet points below the ballot text of the questions that discuss potential effects of each question. Voters are then encouraged to learn more about the questions by visiting the city Web site to find links supporting and opposing the referendum questions.
Paul Lavin, a staffer at the ethics commission said a decision on whether to investigate the flier and possible campaign finance violations will be made at a meeting Nov. 19.
Staff writer David Harry can be reached at 282-4337, ext. 219
Staff Writer
Three years after voters rejected a measure to cap state and local tax increases, backers of a similar question say it is more needed than ever.
Opponents of a second Taxpayer Bill of Rights, including the South Portland, Scarborough and Cape Elizabeth town councils, say the measure is flawed because it includes increases in state highway spending and because state-mandated spending caps enacted by LD 1 in 2005 are already effective.
Statewide, the first TABOR question was supported by about 45 percent of the voters in 2006. Locally, the measure was approved by 52 percent of Scarborough voters but did not pass muster with voters in Biddeford, Cape Elizabeth, Kennebunk, Kennebunkport, Old Orchard Beach, Saco and South Portland.
But according to Tarren Bragdon, chief executive officer of the Maine Heritage Policy Center, TABOR II needs to pass because of a lack of meaningful tax reform and an increase in overall government spending above the cap limits the referendum will establish, “The beauty is that voters have the say,” he said.
The center is working to get the referendum passed, but the measure was written by staff at Maine Leads, described on its Web site as a “nonprofit, non-partisan action and advocacy group.”
Maine Leads staff also wrote Question 2, which seeks to reduce vehicle excise taxes and exempt hybrid and energy efficient vehicles from the state sales tax and the first three years of excise taxes.
Scarborough Town Manager Tom Hall said the effects of both questions passing could be drastic.
“If both pass, it is really doomsday,” Hall said.
Bragdon disputes the idea that letting voters decide on budget and tax increases automatically means cuts in municipal services.
“The claims about gutting services are lies,” Bragdon said.
Martin Sheehan, director of communications for the policy center, asks voters to take a closer look at organizations and governing boards opposed to TABOR II and reducing the vehicle excise tax.
“The opposition to TABOR and the excise tax are people who are receivers of tax dollars,” he said.
A key distinction in the current referendum question reduces the majority needed to pass a tax increase from two-thirds to a simple majority of voters.
A second change in TABOR II has eliminated the requirement to vote on tax increases to pay for local school budgets. The provision was eliminated because the school district consolidation act passed by the Maine Legislature in 2007 mandates local votes on school budgets.
Another tax increase targeted by the question is the annual increase in the gasoline tax that now is adjusted each year with the rate of inflation.
If passed, Question 4 will establish a state fund comprised of budget surpluses to offset future increases as well.
Sheehan said the overriding philosophy of TABOR II is that government should grow at a rate taxpayers can afford. Voters also need a stronger voice in setting spending decisions, he said.
The need for TABOR II is based on increases of almost $300 million in state taxes from 2006 through the 2011 fiscal year and the addition of 3,400 new public employees in the state this decade – despite the loss of more than 13,000 private sector jobs, Sheehan said. The center also cites increases in local tax commitments for the need to extend TABOR to towns and cities.
South Portland Finance Director Greg L’Heureux said passing TABOR II could complicate future bond questions already decided by voters. This is because while the bond vote might be approved, future budget increases to pay for bond commitments might also require votes.
The tax commitment in South Portland to pay for government services has increased from $44.64 million in 2000 to $55.23 million this year, according to data presented at the policy center Web site.
That 23 percent increase in the property tax commitment is less than seen in Cape Elizabeth, where the property tax commitment was $13.61 million in 2000 and is now $23.07 million.
In Scarborough, the property tax commitment has increased from $24.17 million in 2000 to $42.36 million. Hall said the town council has worked hard to limit spending increases and, in the last three years, budgets have grown by 2 percent or less.
But Hall said holding the line has been made easier with health insurance premiums remaining stable and employees forgoing pay raises.
Sheehan said that should be expected in hard times because the public sector must recognize limits as residents and businesses also cut back.
Hall said he would like to see tax reform that provides more options in levying local revenue. Property and excise taxes are the primary ways towns and cities raise money.
“Property tax is arguably the worst and bears no relationship for someone’s ability to pay it,” Hall said.
Bragdon said the discussion should first center on spending instead of taxation methods.
The opposition of South Portland councilors to TABOR II and the excise tax question led to a complaint by David Crocker of the TABOR Now campaign to the Maine Commission on Government Ethics and Election Practices this week because of a flyer included with South Portland property tax bills on the vote against the referendum questions.
Crocker has asked the commission to investigate whether the flier violate campaign finance laws because the city has not registered as a ballot question committee that should submit financial records for public review.
Sheehan said the fliers are also unfair.
“You can’t have government telling people how to vote,” Sheehan said.
South Portland City Manager James Gailey said flyers were included in 9,300 tax bills sent to residents last week at a cost of $564, well below the $5,000 spending threshold required for registration.
The flier notes the city council opposition to questions 2 and 4 and lists two bullet points below the ballot text of the questions that discuss potential effects of each question. Voters are then encouraged to learn more about the questions by visiting the city Web site to find links supporting and opposing the referendum questions.
Paul Lavin, a staffer at the ethics commission said a decision on whether to investigate the flier and possible campaign finance violations will be made at a meeting Nov. 19.
Staff writer David Harry can be reached at 282-4337, ext. 219
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