December 22, 2024
TAX REFORM DEBATE THE ONE PERCEN

Glenburn studies likely impact of tax cap proposal

GLENBURN – Potential cuts to the town’s budget, while not as large as in some communities, will have a substantial impact on residents if the proposed Palesky tax cap passes, according to findings reported by the Glenburn Tax Cap Information Committee.

The nonpartisan committee, which included representatives from the council and school board, as well as residents, was created to explore how the town would be affected if the proposal passes on Nov. 2.

The committee has taken no position on the tax cap proposal.

“We feel it was a success,” Mark Lagasse, a councilor and tax cap committee member, said Monday. “The charge that the council gave us was to get some facts together and then produce a fact sheet that we could send to the residents.”

The proposed cap would limit local property taxes to $10 per $1,000 valuation, resulting in a shortfall of more than $1 million in Glenburn’s budget.

“It’s going to affect each town a little bit different,” Lagasse said.

The town’s current tax rate is $18.90 per $1,000 of assessed property value, which means the owner of a $100,000 home pays a tax of $1,890.

If the tax cap passes, property taxes will go down, but so will the service level of the town, the committee reported. While new and increased fees would be implemented to maintain some school programs and municipal services, other services would be decreased or eliminated.

“The committee’s charge wasn’t to decide where any cuts would be made should it pass,” Lagasse said. Members did speculate, however, where cuts would come based on the reduction in revenues the town faces if the measure passes, he said.

Changes to town services would include:

. The loss of contracted police service with the Penobscot County Sheriff’s Department.

. A decrease in road improvements and maintenance.

. Elimination of streetlights.

. Reduction in all town departments, including the Fire Department.

In addition to limiting the property tax rate, the measure might eliminate homestead exemption funds, which would mean an additional revenue loss of about $150,000 for the town. The state reimburses the town for a percentage of the homestead exemption.

The schools, which take up 77.3 percent of the town’s budget, also would see drastic changes. Among those would be:

. Elimination of transportation for high school students.

. Elimination of several teachers, support staff and administrators.

. A dramatic increase in class sizes.

. All athletic and co-curricular activities would be fully supported by participant fees or would be eliminated.

Councilors and committee members are afraid that if the tax cap passes, Mainers will feel the impact of the proposed measure far into the future, much like California has experienced since a similar measure was passed there 25 years ago.

“The council, along with this committee, feels that tax relief is necessary, and it’s something that needs to be followed up with,” Lagasse said. “We just feel that this is not the right approach.”


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