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from AMF: New fees and taxes exceed $200 million "savings"


By ldutson - Posted on 25 April 2008

Here's the latest from Tony Payne at the Alliance for Maine's Future:

First they "cut" $200 million then they raised beverage taxes and increased fees on vehicle registrations by $215 million!

After all the hand wringing and posturing, a majority of legislators actually raised more taxes and fees than they cut. The Alliance for Maine's Future had asked legislators not to raise taxes and fees, use accounting gimmicks or shift unfunded mandates onto other levels of government. However, a majority ignored the request and added to the cost of living in Maine.

Here's what the Maine Public Spending Research Group had to say about it:

"Just days after lawmakers received rounds of congratulations for closing the $200 million budget gap without increasing broad based taxes or dipping into the rainy day fund, they approved a series of tax and fee increases to fund projects that were discussed and debated after the budget passed. The total costs of these projects exceeds the savings found earlier in the general fund budget."

There have been no serious cuts in the cost of running state government. State employee jobs have been protected while programs that serve people have been cut and creative accounting has risen to a new level. For example, to balance the budget, legislators and the governor assumed the state employee wellness plan would reduce health care expenses by $28 million. Really? The cost of that gimmick will surely be passed along to citizens in the next round of tax increases.

People's Veto

Maine law provides that if enough citizens petition the state within 90 days after the Legislature adjourns, a newly passed law can be stopped from being enforced until it can be voted on in November. It's the people's veto.

The new taxes on soft drinks (soda, flavored water, etc), beer, wine and health insurance are expected to raise the cost to live in Maine by $55 million. Fortunately, some members of the business community are hoping to stop it from happening. All they need is to collect 55,000 valid signatures within the next 90 days. Stay tuned.

How they voted on vehicle fee increases

No one takes issue with the need to repair our bridges and roads; it's a matter of public safety and it's in the interest of supporting a robust economy. Safe roads and bridges carry products and tourists that provide jobs. That's why, with days left in the legislative session and the cupboard spent bare, those who set the agenda in the capitol presented legislators with a bill (LD 2313) to repair Maine's neglected bridges.
A large majority of state representatives chose to raise vehicle registration fees and other Department of Motor Vehicle transactions by $10 a pop.

The total cost to Maine people will be more than $160 million. Add that to the $55 million tax increases to fund the subsidized Dirigo health plan and the increase exceeds the $200 million cuts used to balance the budget.

With that background, here is the House of Representatives vote to raise your fees to fund bridge repairs. It also should be noted that few legislators would want to be on the record as opposing bridge repairs during one of the worst seasons for potholes in recent memory - nevertheless, they should have set priorities and cut elsewhere in order to fund this long-overdue repair program. Unfortunately, there was no roll call vote in the Senate.

To contact your legislators or the Governor now, go to:

www.myvoteatwork.com

Or you may call and leave a message at the State House:

Maine Senate: 1-800-423-6900 Maine House: (800) 423-2900



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Disclosures

Lance Dutson is owner of Maine Coast Design, a web development and internet consulting company. He is also Director of Internet Strategy for the Collins for Senator campaign. All views expressed on this blog are the personal opinion of Lance Dutson, and should not be construed as official statements of either organization.