Anti-tax cap group gains followers Brewer organization optimistic

AUGUSTA – A Brewer-initiated coalition to defeat a proposed statewide property tax cap is gaining momentum, according to its backers, who said Wednesday more than 300 communities have expressed interest in joining the group.

Brewer City Manager Steve Bost has informed members of his City Council that community leaders from across the state are willing to pledge any new revenues received under a recently approved statewide tax relief plan directly to local property tax reductions. He said the coalition’s goal is the best strategy to convince voters to oppose the 1 percent tax cap proposal that will appear on the November ballot.

Bost said the response from numerous city and town governments on the tax relief pledge first advanced by the Brewer City Council has been “overwhelmingly positive.”

Shortly after the June 8 vote on the Question 1 tax relief plan, the Brewer City Council endorsed a plan to dedicate a minimum of 90 percent of the new revenues it receives under Question 1 directly to tax relief. Bost then used the council’s resolution as a template for other communities to craft their own statements of support as part of a municipal grass roots movement to oppose the cap.

“Most of the activity will be taking place this month and August when various boards and councils will meet across the state,” Bost said. “Some of them have already made some minor modifications and in a very positive sign, the vast majority of councils and boards of selectmen are opting for 100 percent [revenue reimbursement for tax relief]. Our hope is to have this phase of the effort wrapped up by Labor Day. But it’s a lot of work.”

Bost and the Brewer City Council’s effort to defeat the tax cap is not the only organized opposition to the citizen initiative advanced by Carol Palesky and the Maine Taxpayers Action Network. The Associated Press reported last week that Larry Benoit, a consultant and former aide to Gov. John Baldacci, will run a campaign against the cap. Benoit has been hired by a still-evolving coalition that includes the Maine Municipal Association, the Maine Education Association, the Maine State Employees Association, the Maine AFL-CIO and Verizon.

Benoit said more organizations and businesses, including the Maine State Chamber of Commerce, are likely to join the coalition as the Nov. 2 referendum approaches. But Chamber officials are not ready to make a commitment to the campaign, preferring to give the issue further study before taking action.

Bost is confident that simply by emphasizing the municipal revenue benefits of Question 1, the tax cap question can be defeated. Approved by 55 percent of the voters, Question 1 carries a whopping price tag of about $250 million to raise the state’s share of education from about 43 percent to 55 percent next year. The money would be divided among municipalities with the goal of reducing educational costs funded by local property taxes in many cities and towns.

With tax rates stabilizing or declining as the result of Question 1’s implementation, Bost argued there would be no need to adopt the Palesky plan which would roll back taxes to $10 per $1,000 of valuation and severely limit future tax increases. Municipal officials like Bost worry local revenues could be slashed by as much as 50 percent under the cap proposal prompting sweeping cuts in municipal services. He said the potential inclusion of hundreds of new communities in the Brewer-led coalition could influence many undecided voters to oppose the plan.

“This really is an effort to put the framework in place before the fall campaign, but it’s the kind of work that needs to happen to confront some of the arguments that will be presented in the fall,” Bost said.