The Casco Bay Forum is a group of residents from the Casco Bay islands committed to sustaining and strengthening our communities. The tax burden is a grave threat to the rural nature of Maine islands and the affordable cost of living in these communities. We need public policy that supports and enhances traditional island communities. It is imperative that we safeguard our communities now because if we don’t, in the future it won’t matter: there will be nothing left to protect. We advocate for the following:
Expand the circuit breaker program by allocating larger dollar amounts, expanding income eligibility levels, adjusting for inflation annually, and establishing an incremental income phase out for participation in the program. Implement the increased household income eligibility levels and implement the maximum benefit as proposed in LD1 as soon as possible. Our communities cannot afford to wait until 2009 and 2011 as proposed in LD1. Reallocate money from the homestead exemption program to fund the expanded circuit breaker program.
Review current spending at all levels of government, implementing a zero based budgeting approach, perhaps administered by a blue ribbon panel, with a target of review every five years. To identify cost saving opportunities, analysis of spending should include comparing service delivery costs to other comparable government units. Utilize spending caps only if deemed necessary after completing a zero based budgeting approach.
Avoid shifting the tax burden from the state to other levels of government. State government should not reduce expenditures to municipalities or establish unfunded mandates as a method for lowering its revenue requirement.
Implement 55 percent support for education funding immediately as decided by public vote in June of 2004. Do not gradually phase in increased education funding over time.
Make the school funding formula better reflect a community’s ability to pay as measured by median household income to accompany the essential programs and services funding mechanism now in place.
Establish a balanced taxation system by expanding the sales tax base and then adjust the sales tax rate, if necessary, to reduce Maine’s overdependence on property taxes and income taxes. Raise the level of income at which the maximum income tax bracket takes effect.
Make L.D. 2 mandatory statewide so that it is not a patchwork solution. Improve L.D. 2 by including a provision that bases the property tax rate on the actual purchase price of the property. Base eligibility for the program on income and assets owned.
Reject the proposed property tax deferral program for property taxes in excess of 6% of household income.
Charles Enders, Peaks Island
Mark Greene, Long Island
Christine McDuffie, Long Island
Anne Pringle, Little Diamond Island
Donna Miller Damon, Chebeague
Roger Berle, Cliff Island