November 22, 2024
Column

How to answer concerns raised by TABOR results

There is little doubt that after three statewide referendum questions on tax relief in the last four years, the public is concerned about and focused on Maine’s high tax burden.

One of the referendums, calling for greater state school funding, was successful. The other two, which would have cut tax rates or capped spending, failed. The most recent measure, known as TABOR, was defeated on Nov. 7 but attracted 45 percent of the vote.

Yet the issues that prompted the TABOR referendum drive and will spur others if they remain unaddressed are still before us. If TABOR is not the answer, then what is?

At the Maine Children’s Alliance, we believe there are alternatives, and if they are tried, they can show our state a better future without damage to public services.

Reducing the tax burden will require hard work, but the concepts behind it are simple. There are basically three ways to lower a state’s tax burden. One is to cut public services and the taxes that support them. That is the TABOR route. The second method is to find more effective and efficient ways to deliver services – improving the services as well as cutting costs.

The third method is to invest in programs that have been proven to boost economic growth and increase incomes. If Mainers have higher incomes, our tax burden will decline because we get to keep a greater proportion of what we earn.

Investment is probably the most attractive way to reduce the tax burden, but it takes time. The best-known examples of such public investment are in research and development and in transportation infrastructure. But there are other examples. If we immunize children and provide regular checkups, we ensure that youths will grow up to be healthier and more productive citizens. The research shows that public investment in children pays for itself many times over.

The Maine Children’s Alliance believes that the best way to reduce our state’s tax burden is to combine the second and third methods – to invest in the future, and also figure out how to better deliver public services today.

Our recent report, “A Case for Cooperation,” shows how we can reinvest in our schools to provide better education, while savings dollar that could be used for tax relief, if that’s what local voters want. This is not pie in the sky, like so many campaign-season promises. By learning to cooperate and share resources, Maine school districts can provide a measurable impact on budgets, while making sure that our children are truly ready for the 21st century economy.

In the year before the report was released in August, and the three months since then, we have learned a great deal about what works and what doesn’t – and how local decision-making can be used to make gains all across the state. The Legislature can’t dictate change, and the governor can’t force it to happen. But by using a careful mix of state incentives, streamlined rules, and local choices, a powerful wave of reform can be achieved.

All too often, we are asked to make uncomfortable choices. Do we want lower taxes or do we want good schools? That debate can rage for months and years, and people can remain divided. Colorado voted four times on TABOR before it passed, and then suspended it a decade later.

We shouldn’t want that kind of future for Maine, nor will this level of divisiveness help our children. By defining roles for everyone, at the state, regional and local level, we can harness the considerable energy of Mainers in making our schools among the best in the nation. When we do so, we will have ensured our future success in a way no ballot initiative or tax formula can achieve.

It won’t be easy. But it is well worth trying.

Elinor Goldberg is the president-CEO of the Maine Children’s Alliance, a statewide multi-issue child advocacy organization. “A Case for Cooperation” is available on the MCA Web site at www.mekids.org or by calling 623-1868, ext. 202.


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