Bucksport officials pan tax cap proposal

BUCKSPORT – Passage of the so-called Palesky tax-cap referendum will result in devastating results for the town, according to speakers at an informational meeting Tuesday night.

All areas of municipal services would be affected by the tax cap if it passes, town officials told the small audience that attended the forum sponsored by the local Chamber of Commerce.

The tax cap referendum would limit property taxes to 1 percent of a town’s assessed valuation.

Wes Bonney, chairman of Citizens United for Maine, reviewed some of the most publicized impacts of the proposal but also noted that there could be unanticipated effects if it is passed. Passage of the proposal could have a negative effect on the business climate in Bucksport and throughout Maine, he said.

Bonney said the cuts that would be forced on the school department may make the town less attractive to businesses looking for a new home.

Cuts to public safety departments, especially the fire departments, also could affect insurance rates, he said.

“This is not just a question of cutting taxes, but what happens as a result of those cuts.”

Local officials summarized some of the anticipated impacts of cutting the taxes.

The tax cap would reduce municipal revenues by more than $3.5 million, according to Superintendent of Schools Marc Curtis. If that cut was apportioned based on current spending, the municipal budget would lose a little more than $1 million in revenues; the school department, almost $2.5 million.

Curtis presented projected cuts that estimated the school system would have to cut about 50 positions, including 30 teaching positions; 20 in the elementary school and 10 at the high school.

Under questioning, he stressed that these were projections, and that if and when the cuts had to be made, it would be done with a group of people reviewing where to make specific reductions in staff.

“We may shift some of them around, but this would be a massive reduction,” he said. “Between 65 and 70 percent of our expenses is people. There’s no question that we will have to cut personnel. There will have to be drastic changes and decreases.”

The loss of revenues not withstanding, the worst aspect of the Palesky proposal is that it takes away local control from communities, according to Town Manager Roger Raymond.

“What Carol Palesky is saying is that you guys have not been doing a good job … and you should be punished,” Raymond said.

He stressed that the bill is not aimed at state or county government. It pertains solely to the municipalities, he said.

Under the proposal, any community that wants to raise more than the 1 percent cap would have to get approval from two-thirds of the voters in the state of Maine at a general election.

The impact of the bill on Bucksport would be significant, he said, and would hit all levels of service in the community.

“If this passes, we will look at every possible way to take advantage of the law and get as much money as possible,” he said.

Raymond said residents can expect to see user fees for some services, such as the recreation program and the transfer station, as well as cuts in some programs and the elimination of others.

He said the town would likely cut its capital improvement programs to zero and wait until roads and facilities were in bad enough condition and then borrow funds to repair them.

Under the Palesky provision, a community can borrow funds beyond the 10 mill cap level if approved by two-thirds of the voters.

“That’s not the way to run a business,” he said. “We’ve proven that we can maintain a fair local tax rate and still provide the services residents want.”