Orono residents, officials say tax cap bad legislation

ORONO – The consensus of residents and public officials at Wednesday night’s public forum on the proposed Palesky tax cap was that the legislation, while it would lower property taxes, is likely not the best answer.

“This is bad legislation,” Orono Fire Capt. Dave Martin said. “It’s going to hurt every aspect of municipal government.”

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 value, drastically reducing the amount of revenue the town receives from property taxes.

The municipality is faced with a total reduction of $3.9 million; approximately $2.1 million for the school department and $1.8 million for the town, according to officials.

Such cuts could mean 25 to 30 school employees and 20 to 25 town employees would be without jobs. In addition, nonmandated programs, such as kindergarten, could be lost.

“I’m not saying this to be an alarmist, but I think these are the kind of cuts we’d have to look at,” Superintendent Tom Perry said.

Orono resident Stewart Dexter told officials he is undecided about how he will vote on the issue. He explained that if the tax cap passes he is worried that vital town services will be lost, but if it doesn’t pass he is concerned that the town won’t make attempts to lower property taxes.

“It’s very important to remember that this Palesky proposal is a Draconian solution to mounting pressures,” Councilor Terri Hutchinson said. She, along with other councilors and Town Manager Cathy Conlow, urged residents to take an active role during the town’s budget process.

Officials also noted that some services and positions could be eliminated, consolidated or shared with other municipalities, but that residents opinions are important in determining where to make budget cuts and that the Palesky initiative likely would take away much of that local control.

“I think that the people in Orono get a great value for their dollar,” Conlow said.

Of the approximately 12 residents who attended the meeting, those who spoke publicly agreed.

“This is bad legislation. This will do bad things to our town,” resident Joe Dupuis said. “Bad legislation doesn’t get better just ’cause it passes.”