Orono broaches tax cap plan Council, school board concerned about loss of local control

ORONO – Town councilors and school board members stressed at Monday night’s special joint workshop that local control of tax dollars will be lost if the Palesky tax cap measure is approved by voters Nov. 2.

The two groups met Monday to compare notes and discuss how to present information on the tax cap initiative to residents at a public forum Wednesday night.

The tax cap referendum was initiated by a citizen petition and will be on the Nov. 2 state ballot. If it passes, it would cap property taxes at 1 percent of their assessed 1996-97 value.

“You lose local control with no option to get it back,” Town Manager Cathy Conlow said at Monday’s meeting. She noted that there is no local option to override the initiative if voters pass it.

Town and school officials said that if the referendum doesn’t pass, they hope to hear more from residents about alternative ways to lower property taxes, realizing that some residents feel the tax is too high.

“We need to hear from people what they would be willing to give up,” Councilor Terri Hutchinson said.

The purpose of Wednesday’s forum is not to scare residents, but to present factual information, Conlow said.

Figures from the school district’s end are similar to those presented by the town earlier this month.

The 2004-05 school budget is about $7 million with $3.6 to be raised from local property taxes. The mill rate is set at $24.20 per $1,000 of valuation for the 2004-05 budget. If the Palesky measure passes, the department is looking at an estimated $2 million loss in revenue.

That kind of budget reduction would mean at least 24 staff, faculty and administrative positions would be cut, according to Superintendent Tom Perry on Monday.

In addition, the school is looking at the possibility of larger class sizes, a reduction in student services, and the potential loss of all extracurricular activities and programs.

“It does give you a sense of the depths of cuts we would have to make,” Perry said.

Previous reports from the town show that its budget would be reduced by at least $1.7 million – a 30 percent to 40 percent reduction in funds for each department – with the most drastic reductions being made to the police and fire departments, according to Conlow.

The town manager noted that information presented at Monday’s meeting did not look at other ways the town might raise additional revenue if the cap passes, such as through excise and sales taxes or service fees.

Officials encourage residents to attend the public forum on the tax cap at 7 p.m. Wednesday in the Town Council chambers. School and town officials will give a brief presentation about the tax cap and residents will have an opportunity to voice their concerns and ask questions.

“All we’re trying to do is put together a picture to present to the community,” Council Chairman Geoff Gordon said.