Tax Free Budget Praised by Senate Republicans, Concerns about School Consolidation Remain

FOR IMMEDIATE RELEASE
MAY 30, 2007

AUGUSTA – Maine’s Senate Republicans are energized by the nearly finalized biennial state budget, which must go to the full Legislature for final consideration.  The funding plan incorporates the three key principles Republicans have been championing throughout budget negotiations: limited state spending, no new taxes, and the foundation for a better future.  However, many members of the Senate Republican caucus remain concerned with the latest school consolidation portion of the budget.

Maine’s Republicans have been emphasizing the need for a state budget that remains under the LD 1 spending cap.  The cap offers an amount by which Maine government can increase spending, limiting that amount, but allowing for moderate growth to reflect slight increases in running the State over time.  However, LD 1 contains no penalties for exceeding the limit, which is why Republicans took a leading role to successfully influence a responsible budget package that prioritizes public dollars.  For example, much needed funding for higher education, including the University of Maine system, community colleges and Maine Maritime Academy, is now included in the budget.

In addition to limited government spending, the budget contains no new taxes or tax increases.  Governor Baldacci’s initial budget proposal contained $136 million in tax increases, while the Democratic budget proposal called for $110 million in new taxes.  In the end, tax increase advocates were forced to relent because of Maine Republicans’ strong and vocal opposition to any new tax or tax increase.

Republican influence in budget proceedings also resulted in a funding plan that lays the foundation for an affordable government in years to come.  The budget holds the line on taxpayer funded benefits, avoiding any increases in the debt this program has resulted in.   In addition, strategic reforms to Medicaid have created significant savings for Mainers, without cutting enrollment by a single individual.  These cost saving reforms, supported by Maine’s Republicans from the onset, curb the amount of tax dollars used to support these costly programs, and set the stage for further savings down the road.  

 Senate Republican Leader Carol Weston, of Montville, is proud of her party’s successful role in the budget negotiations, and sees this funding plan as a success for the people of Maine.  “Our [Republicans’] three principles guided our efforts throughout the entire budget process,” she explained.  “Because of our steadfast commitment to a responsible budget plan that takes care of today, and looks ahead to the future, Mainers now have a budget that limits spending, does not raise taxes, and lays the groundwork for an affordable government in years to come.”

 The final piece of the budget, school consolidation, may cause some Senate Republican budget support to waver.  After reviewing a summary of the consolidation plan, some caucus members have raised serious concerns.  Among other aspects of the plan, Senators are concerned with loss of local control, district configuration, school choice, and non-compliance penalties.

 “We have a great budget plan right now, but the school consolidation piece is going to complicate things,” Sen. Weston said.  “We are well passed the point in which a simple majority of the Legislature can approve this budget.  At least 2/3^rds of the Senate and House will have to be assured that any school consolidation plan will set the course for tax relief without placing unreasonable mandates on local communities.  Without that assurance, this budget may fall short.”

CONTACT:

William Thompson                    287-1505 (o)
Communications Director, Senate Republican Office

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