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Property taxes continue to grow more slowly, state under spending limit by $221 million
February 13, 2009
AUGUSTA – State Rep. Mark Bryant announced Thursday that the State of Maine has stayed under the statutory spending caps imposed on government for a fourth straight year by $221 million. According to data from the Maine State Planning Office, local property taxes also continued to grow more slowly, recording a 3.9 percent increase for 2008. Prior to the passage of LD 1, local property taxes had grown at a rate of more than 5 percent.
The state spending caps were put in place by LD 1, legislation that was passed in 2005 and set spending caps for state, county, local governments and school districts. Since the enactment of those caps, the state has remained below the caps by varying amounts. In 2008, the state spent far less than the limit, staying 6.7 percent below the cap.
Bryant, a member of the Legislature’s Taxation Committee, noted that the caps have been important in controlling spending, but that between the nationwide economic recession and LD 1’s provision to ramp up education funding to 55 percent, it will be some time before the full effects of the spending caps are felt by taxpayers.
“It is good to know that we are on the right track, but in order for Maine people to see more immediate tax relief, we need to look harder at modernizing our entire tax code,” said Bryant. “Property taxes are only one component. In this economy, we have to take a look at the big picture, including income and sales taxes, to help lower our overall tax burden.”
The goal of LD 1 was to move Maine’s tax burden in to the middle one third of states by 2015. If the current pace of state spending and lower tax growth continues, that goal is very attainable. The current challenges of the biennial budget will cause the state to continue to reduce spending, but the Legislature is committed to do so while maintaining the state’s commitment to essential services like education and health care.
The Appropriations and Financial Affairs Committee is currently holding hearings on the biennial budget, the state’s fiscal plan for the next two years.
Contact:
Rep. Mark Bryant, 892-6591
Casey Johnson Bromberg, legislative aide, 287-1430
Kyle Leighton, communications director, 287-1433