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FROM PAGE A1 property tax increase. “Our property taxes have reached a breaking point,” said Bubier. Casavant, at the hearing, spoke about an 85-year-old woman living in Biddeford who must continue to work so she can pay her property taxes. Biddeford Fire Chief Joseph Warren said the loss of additional revenue sharing to Biddeford would affect public safety. Reductions of firefight ers and EMT personnel would delay response times to fires and ambulance calls. “We're talking about peo ple’s lives here,” he said. Biddeford Police Chief Roger Beaupre said his depart ment would lose more than $400,000, reducing staffing to pre-1991 levels. State revenue sharing cut backs that have already taken place have impacted municipal budgets. In 2009, Biddeford received $1.9 million from the state, this year it received $1.1 mil lion. During the same time period, state revenue sharing was decreased in Sanford from $2.2 million to $1.2 million, in Saco from $1.4 million to $800,000, and in Kennebunk from $700,000 to $400,000. If the fund is reduced by $40 million, Biddeford would receive only $366,000, Sanford would get $388,000, Saco would take in $278,000 and Kennebunk would net a mere $135,000. LePage has “crusaded” against revenue sharing, according to a statement from the Democratic Senate Majority Office, calling it “wel fare” for local governments. The governor has also threatened to withhold bonds, many to be used for transpor tation improvements, if this bill passes, according to the statement. “Once again, Gov. LePage is threatening to hold Maine's economy hostage if he doesn't get his way,” said Senate Majority Leader Troy Jackson of Allagash. “Today, the Senate sent a message that we will not be held hostage. We will stand up for our towns and cities and keep our funding promise.” Restoring the $40 million to revenue sharing would be funded with $21 million from the budget stabilization fund, the so-called rainy day fund; $4 million from a reserve account for tax breaks for the wealthy; and $15 million from new revenue. Department of Administrative and Financial Services Commissioner H. Lawin Millett Jr. has warned the Legislature against remov ing funds from the budget stabilization fund. “It is not sound fiscal policy to dip into the State of Maine’s savings account and further diminish our already limited financial reserves,’ he said. “Bond rating agencies, such as Moody’s and Standard Poor's, have warned of a potential downgrade should we fail to maintain or increase the balance of our budget sta bilization fund. “A change in our ratings could increase interest rates on bonds by as much as 1 per cent.” However, according to the Senate Majority Office, “two representatives from Moody's and SP have said utilizing monies from the budget stabi lization fund would not lower the state's credit rating.” Casavant said he thinks some legislators are concerned about the affect that using budget stabilization funds will have on the state's credit rat ing, and that this could cause a problem for future votes on the issue. Passage of the bill “is not a done deal,’ he said, “but it’s a great first step.” Last week, the state House of Representatives approved the measure 114-21. It passed again Tuesday under the ham mer. It will go back to the house for further votes. Staff Writer Dina Mendros can be contacted at 282-1535, ext. 324 or dmen dros@journaltribune.com.
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Biddeford Journal Tribune
Biddeford, Maine, US
Wed, Feb 12, 2014
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