March 28, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

Return of revenue-sharing funds may save several jobs

ORONO — The Legislature’s decision to return about half the $30 million in revenue-sharing funds that it planned to withhold granted a tentative reprieve to a number of jobs headed for the gallows here, town officials said.

When Gov. John R. McKernan first announced plans to suspend revenue sharing as part of his deficit-reduction effort, Orono Town Manager Nancy H. Orr said the town would take a $300,000 hit during the current fiscal year.

In Old Town, City Manager David O. Cole reported the city would lose approximately $451,000.

After dusting off their municipal budgets, both managers predicted decreases in services, tax increases and possible layoffs for town employees if the Legislature approved the governor’s plan.

But lawmakers, pressured by their constituents, reinstated some revenue sharing — $12 million from February through June, and another $6 million next July.

While Orr and Cole said the money would help, they have yet to rest much easier, always hearing those ominous words: “If you thought this year was bad, wait until 1992.”

After all, predictions about next year’s shortfall run from the $125 million experienced at the end of 1991, to $300 million.

“From the information we’ve seen thus far, this will of course have an impact, but probably will not require any layoffs,” Orr said Monday, adding that town officials remain unsure what action will be taken. Councilors are likely to discuss the matter on Jan. 13.

“My suspicion is this is just the beginning,” Orr said.

Budget numbers have yet to be officially crunched, but Orr said that revenue-sharing checks are not likely to be affected until February.

The town’s December check for about $58,000 was above average, Orr said, which appears to be the trend: a report from the Maine Municipal Association showed that from the years 1985 to 1991, this year ranked second only to 1989 in highest revenue-sharing payments to towns.

“I don’t think we know” what the affects will be, Cole said. The City Council will meet Jan. 6 to again review the budget, but the ball remains in the Legislature’s court, Cole said.

“We’re reviewing our options in light of what the Legislature is doing,” Cole said. “It’s a difficult environment to do any planning right now.”


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