Governor, Non-partisan Group Urges No Vote on Question 1 June 8

Group says initiative would raise taxes, not lower them

PORTLAND, Maine, May 17, 2004 --- Gov. John Baldacci and a non-partisan citizens group made up of healthcare, business, union and social services leaders urged Maine voters on Monday to reject Question 1 on the June 8 ballot, saying the initiative could raise state taxes and trigger deep cuts in vital state services and programs. (see full list of members at end)

Speaking at a press conference Monday afternoon at the Portland Regional Chamber, the Governor and representatives of the coalition said the Maine Municipal Association’s initiative, which was first voted on last fall, places a massive new spending mandate squarely on the backs of state taxpayers, amounting to $245 million in the first year alone.

“Question 1, sponsored by the Maine Municipal Association, offers hard-pressed homeowners a seductive, but false promise for tax relief,” said Dana Connors, chairman of the Maine State Chamber.

“If Question 1 passes, it will cause another financial crisis in Augusta. The Legislature will be forced to increase taxes massively or cut vital programs and services or do both,” said Connors, who is also chair of the group leading the effort, the Vote NO on Question 1 Coalition. “Important tax relief programs, such as the BETR (Business Equipment Tax Rebate) program, will be in jeopardy,” said Connors. “Question 1 also threatens many programs that provide fundamental support to Maine’s economy and civil society, such as public safety, healthcare for the elderly, child welfare, the University of Maine, job training and many others.”

Also speaking against Question 1 was Dana Graham, President of the Maine State Employees Association. Carl Leinonen, Executive Director of the Maine State Employees Association also attended to show support for the Coalition.

Jean Gulliver, Chair of the State Board of Education, also spoke against Question 1.

Connors also said that despite MMA’s claims, there is no guarantee that municipal governments will return the $245 million windfall to homeowners through reduced property taxes.

“The June 8 referendum question does not require that even one penny go to property tax relief. Indeed, most municipalities would likely spend much, if not all, of the new money for local education and indirectly fuel the expansion of other municipal services,” said Connors.

John S. Williams, President of the Maine Pulp & Paper Association, said, “Question 1, if approved, will lead to increased taxes on Maine's manufacturing industry. The budget chaos it will produce in Augusta will further reduce the confidence of investors who would otherwise be willing to provide the capital investments needed for Maine industry to stay competitive. Maine needs manufacturing, and Maine voters should reject this fiscally irresponsible initiative.”

Ellie Goldberg, Executive Director of the Maine Children’s Alliance, said, “The Maine Children’s Alliance is extremely concerned that Question 1 will have a disastrous effect on Maine kids and families. The cuts that will need to be made to these vital programs will further exacerbate an already grim state funding situation.”

Among those participating in the press conference to show support for a no vote on Question 1 June 8 were W. Godfrey Wood, CEO of the Portland Regional Chamber of Commerce; and Rick Erb, Executive Director of the Maine Health Care Association.

The Vote NO on Question 1 Coalition is the new campaign name for the group who last fall pushed for the passage of Question 1B, Mainers for Real and Responsible Tax Relief. The group has many of the same members and endorsements and will work tirelessly between now and June 8 to defeat the measure on the ballot.

For additional information, go to the group’s website at www.VoteNOonQuestion1.com.

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Vote NO on Question 1 Coalition
www.VoteNOonQuestion1.com

Mainers for Real and Responsible Property Tax Relief

Supporters:
Bancroft & Company
Casella Waste Systems
Dead River Company
Domtar Industries, Inc.
Georgia-Pacific
Independent Energy Producers of Maine
L.L. Bean, Inc.
Madison Paper Industries
Maine Association of Interdependent Neighborhoods
Maine Association of REALTORS
Maine Bankers Association
Maine Center for Economic Policy
Maine Children’s Alliance
Maine Equal Justice Project
Maine Health Care Association
Maine Innkeepers Association
Maine Merchants Association
Maine Pulp and Paper Association
Maine Restaurant Association
Maine State Chamber of Commerce
Maine State Employee Association
Maine Women’s Lobby
McCain Foods
Merrill Marine Terminal Services, Inc.
National Federation of Independent Business - Maine
National Semiconductor
Nexfor Fraser Paper
Parker Hannifin Corporation
Plum Creek Timber Company
Portland Regional Chamber
Sappi
Specialty Minerals
Tambrands
UnumProvident Corporation
Verizon
Wright Express Corporation