"IN THE NEWS"

On the Record
By: State Representative Sharon Libby Jones
December 12, 2001

They Say: Maine has the highest tax burden of any state in the nation.

Answer: The problem isn't necessarily the tax burden. The problem is income. Maine ranks 40th in the nation in per capita income, according to the US Census Bureau. Maine's individual income must increase by $1,000 per year in order to reach the national average. Maine has reduced its annual tax collection by over $450 million a year since 1996.

Question: With a projected $250 million budget shortfall, what are your priorities for next session?

Answer: Our number one priority is health care and education. Maine ranks 1st in the nation for raising a child; 1st in primary education; lowest average home price in New England; and the lowest infant mortality and highest immunization rate in the nation.

Question: Why do you continue raising our taxes?

Answer: Since 1998, the Maine Legislature has lowered taxes by over $450 million per year. The legislature funded approximately $100 million annually in property tax relief (Circuit Breaker & the Homestead Exemption.). The Legislature cut the sales tax by 1 cent, which has reduced taxes by over $120 million per year. The Legislature has increased funding of BETR, which cuts property tax on businesses.

Question: What will be the biggest challenge of the next session?

Answer: Our biggest challenge will be to hold the line on existing programs such as our commitment to General Purpose Aid to local schools and protecting the important health programs paid for by the Fund for a Healthy Maine. We will need to tighten our budgetary belts to avoid spending one-time money on ongoing programs. We will need to work together to protect the programs and priorities that are important to us all.

They say: You are spending our tax dollars to raise your salary and to fund programs that either don't work or don't help the people that need it. Where are my tax dollars being spent?

You say: Three major programs in the State Budget account for nearly 65 percent of the total budget:

K-12 Education $1,880,470,856 for the biennium 35.5% of total General Fund budget

Higher Education $483,402,358 for the biennium 9.1% of total General Fund budget

Access to Health Care $1,012,726,991 for the biennium 20.1% of total General Fund budget

Together, these three programs are 64.7% of the total General Fund budget or $3,376,600,205. If you ask the average Mainer which issues are most important to them, health care and a high quality educational system are always at the top of the list.

Finally: Between FY 1995 and FY 2001, the Legislature cut General Fund taxes by $450 million a year, while local property taxes increased by $300 million during the same time period. While each Maine resident experienced an average annual state tax cut of $375, $250 of that amount was taken back by local municipalities. At least 75% of the total General Fund revenues are redistributed to municipalities, Maine's universities and colleges, individuals, health care providers, and the private sector. It is important to note that those cuts were made in a thoughtful and prudent manner. While we did cut taxes by $450 million, we, at the same time, increased funding for K-12 education, as well as local revenue sharing dollars. We did lower taxes, but not on the backs of local communities.

Top of Page | News Page | Front Page | Email to Friend
1339
Copyright © 2000-08, Town of Greenville, All Rights Reserved
Designed & Maintained by Judy Craig Consulting - Updated: May 2006