Chamber backs Baldacci plan

AUGUSTA – On the eve of a filing deadline and just hours before debate in the House of Representatives opened in earnest, the Maine State Chamber of Commerce said it had suspended a petition drive and endorsed a reworked version of Gov. John Baldacci’s property tax relief package.

“We believe it’s good faith, it’s a good beginning,” Chamber chief Dana Connors said in a brief State House interview as House members prepared to take up proposed amendments to a wide-ranging measure put forth by a 15-member Joint Select Committee on Property Tax Reform.

The Chamber endorsement was cautious and couched.

“We believe the dedicated work of the entire committee, supported by legislative leadership from both parties and the governor’s office, has produced a strong first step toward lowering Maine’s state and local tax burden to the national average over the next decade. We are impressed that all 15 committee members agree on every aspect of LD 1, with the single exception of how long it should take the state to reach 55 percent of local school funding (two versus four years),” Connors said in a statement.

Added Connors: “Of course, LD 1 can be criticized for not going far enough. By itself, the bill does not substantially lower our tax burdens, or guarantee reduced spending growth. But we believe that LD 1 sets the stage for performance – for budget and spending decisions that reduce tax burdens – at every level of government.”

Chamber reservations about LD 1 have also extended to concerns about shifting a residential tax burden to business properties.

The Chamber president’s statement made no mention of how well the petition drive had gone, although there were low expectations at the State House that signatures would be submitted by today’s deadline.

“As many of you know,” Connors wrote, “since last summer the Maine State Chamber of Commerce has been promoting a citizen-initiated petition, often referred to as ‘The Maine Plan,’ that is based on four principles:

. Capping spending growth at all levels of government;

. Providing meaningful relief to taxpayers throughout the state;

. Ensuring that all new state aid for local education (provided by the state to municipalities pursuant to passage of last summers “Question One” on school funding) be returned to local property-tax payers on a dollar-for-dollar basis; and,

. Requiring a two-thirds vote override of spending growth limits in the State House.

“We are pleased with the amended form of LD 1, and believe that it moves us toward achieving three of these principles. We are realists, and while we remain committed to our fourth principle, we believe that LD 1 as amended is a good first step, deserving support,” Connors said.

Secretary of State Matthew Dunlap said Wednesday that a submission of signatures today would be a surprise. “We have not received notice of any forthcoming petition. … We are not anticipating such notice,” Dunlap said.

Connors said the Chamber would keep its options open.

“Long before our petition expires, we will all be in a position to judge whether LD 1 has framed local and state spending decisions that lower taxes, or not. Over the next several months, our signature gathering will continue, and our organization will set up an independent assessment program for evaluating the effectiveness of LD 1. Whether we proceed with a 2006 campaign on The Maine Plan will depend on the path Maine’s state and local tax burden takes over the next several months,” Connors said in his statement.