Question 1 contrary to Republican priorities

Question 1 correctly identifies significant problems – Maine’s high property taxes and overspending – but it is the wrong solution. As Republicans who are concerned with fiscal responsibility, local control and a stable business climate, we oppose Question 1.

We urge voters to carefully consider the impact of Question 1 and the message its passage would really be sending.

. Spending is too high, but Question 1 provides no solution to the underlying spending problem at all levels of government. Question 1 seeks to reduce local spending but does nothing to slow spending at the county or state levels. The effect of Question 1 on overall government spending would be like squeezing a balloon: One part would get smaller but the other parts would expand greatly, and in the end, the amount of air in the balloon doesn’t change at all. Question 1 will not provide the comprehensive spending reform Maine needs.

. Question 1 is a tax shift, not an overall tax cut. Supporters of Question 1 have been quoted as saying that they are hoping to create a crisis that would force Augusta to enact true reform. Because Question 1 doesn’t address state government, however, there is no guarantee that it would act at all. Worse still, if Augusta does act, it would probably increase state taxes, such as sales or income taxes, to make up for the reductions in municipal revenues. Passage of Question 1 would be seen by some in Augusta as a political free pass to raise state taxes and fees.

In the end, Question 1 would simply take less from one pocket as it takes more from another. We’d send fewer tax dollars to our communities and more to Augusta. It wouldn’t reduce the overall tax burden, and therefore, wouldn’t improve Maine’s economy.

. Question 1 would create chaos and confusion, further destabilizing Maine’s business climate. Portions of Question 1 are unconstitutional. Even many of its supporters admit that it is flawed. Its passage would require drastic reductions in schools, public safety, and other critical local services. State tax and spending policies would shift dramatically.

A climate that encourages business growth is, above all, stable and predictable. The confusion that would follow if Question 1 passed would be very harmful to our business climate and economy. Taxes on businesses are likely to increase, state business development programs are likely to be cut, and the education system is likely to suffer.

And where that happens, businesses don’t invest. In fact, these factors led Bangor Savings Bank to publicly oppose Question 1, because the bank concluded that the measure would be bad for Maine’s business climate.

With its property tax cap that served as the model for Question 1, California can answer any questions about the possible impact on businesses: According to the nonpartisan Tax Foundation, after 25 years under its tax cap, the Golden State has a business tax climate ranked 49th in the country.

.

Fewer decisions would be made locally under Question 1, while Augusta would get more control. By shifting most taxing and spending responsibilities to the state, Question 1 would dramatically reduce the control that citizens have over decisions that have been traditionally made in the local community. Again, California’s tax cap provides a cautionary tale: many of the decisions made in Maine by local school boards are made in California by the state Assembly and Department of Education.

If you think that the Maine Legislature would be better at running your local schools, Question 1 is for you. On the other hand, if you think local voters and officials should be making the decisions affecting education, fire and police protection, and other services in your community, we encourage you to join us in voting against Question 1.

Question 1 would send Augusta the wrong message. Some people acknowledge Question 1’s many flaws but say they are going to support it to “send the Legislature a message”. This frustration is understandable, but Question 1 would reward state government by giving it even more power over our communities; power that Augusta would almost certainly use to approve more taxes, worsen the business climate, and place more limits on local control.

If you want to send a message on Election Day, vote for leaders who will provide real and responsible spending and tax reductions, improve the state’s business climate, and reduce property taxes thoughtfully. For Republicans and all Mainers, this is the best way for our priorities – the priorities that will move Maine

forward – to be realized.

This commentary was written by Tim Woodcock, an attorney and former mayor of Bangor; Sam Collins, president of S.W. Collins Co. in Caribou;

and Kevin Hancock is president of Hancock Lumber Co. in Casco.