Governor proposes pirating municipal funds at city's expense

$1.1 million could leave Rockland budget

Tue, 03/12/2013 - 12:30am

    ROCKLAND — Maine Governor Paul LePage has put forth a proposal in an effort to balance the state budget. It would allow the state to redirect a portion of Rockland’s municipal funds. Members of the Rockland City Council, in a statement at their regular meeting March 11, believe the loss of funds would have a significant and negative impact on local municipal services and property taxes.

    LePage's state budget calls for redirecting a portion of sales and income tax revenues, traditionally distributed via the Revenue Sharing Program to towns and cities, away from municipalities and redirect them to the State of Maine to balance the state budget.

    Every municipality in Maine would be affected by the redirecting.

    Rockland City Manager James Smith said the state is proposing to take $1.1 million from the city's revenue stream.

    “If allowed to do so, we would see it on July 1,” he said.
     
    Should LePage succeed in his efforts, the Rockland City Council would have no choice but make cuts in the city’s budget across the board to compensate for the redirected revenue.

    The budget proposal also calls for redirecting the commercial vehicle excise tax. Homestead and Circuit Breaker programs, as well, both designed to keep property taxes low, would be dramatically curtailed.

    The council resolved in a unanimous 5-0 vote to strongly oppose each of the recommendations and encourage the local delegation to oppose any of the measures either in full, or in part.

    Councilor Eric Hebert said they would be selling Rockland short if they were forced to make these cuts.

    Councilor Larry Pritchett said the city had no stance legally to oppose the proposal and if forced the city would have no choice but to make the cuts across the board.

    Smith said the cuts would affect all departments.

    “If you count schools, we have a budget of over $10 million, but we have a net budget of $6.5 million," he said. "Losing $1.1 million is significant. If we made one department take the brunt of the cut it would leave us with two police officers, or one fireman and it would leave the city with minus two public works employees.”

    The council said the only way to make up for the shortfall if it chose to do so would be to raise property taxes.The council encouraged local residents to make their feelings known to their state legislators.