Health Care, Church and Social Services Leaders Warn Voters Against 1A

5 More Organizations Endorse Question 1B on Nov. 4 Ballot

AUGUSTA, Maine (Oct. 6, 2003) -- The leaders of Maine's health care and social service communities said today if 1A passes, it will put thousands of Maine residents at risk.

"It's simply a bad idea, any way you look at it, so we are supporting 1B," said Christopher St. John, the executive director of the Maine Center for Economic Policy, a non-profit research organization focusing on state tax and budget policy.

St. John was joined by Kimm Collins, Executive Director of the National Association of Social Workers, Maine Chapter; Sarah Standiford, Executive Director of the Maine Women's Lobby; Tammy Greaton, Co-director of the Maine Peoples Alliance; Richard Erb, President of the Maine Health Care Association, and Marc Mutty of the Maine Council of Churches at a press conference Monday in Augusta.

Each of the groups represented endorsed Question 1B on the Nov. 4 ballot, asking voters to vote Yes on 1B to preserve health services, education funding and jobs.

"The poster child of current state fiscal woes is California, whose schools have suffered losses of funding for more than 20 years due to the disastrous Proposition 13 property tax cap," said St. John. "And we all know what happened there - the resulting pressure on state funding has now brought the state close to bankruptcy. With 20-20 hindsight, we can see those strategies do not work when the economy slows down, as Massachusetts and Oregon are also finding out. Tax revenues just can't keep pace with growing school costs, and painful cuts are the result." St. John said 1A, the Maine Municipal Association's initiative, would require the state to adopt painful measures to implement its mandate.

" The MMA initiative would require an increase of the general sales tax rate from 5 percent to 7 percent (a 40 percent increase); or alternatively a 24 percent increase in individual income tax collections; or and extension of sales taxes to a broad array of services, such as haircuts, recreation, funerals, food, financial services and/or professional services," he added.

Sarah Standiford, Executive Director of the Maine Women's Lobby, said "The MMA initiative puts women and children last. Immediately increasing the state share of education spending leaves the State with just two choices-- increase tax revenues or cut services. Vital health and human services programs supporting the well being of women and families would inevitably be on the chopping block. The Maine Women's Lobby believes that essential program funding for health care, domestic violence prevention, low-income assistance, and others must be supported."

Standiford said Question 1B is better state fiscal policy.

"The Maine Women's Lobby believes that the competing measure is better state fiscal policy. It is an incremental approach to increasing state education spending. It offers some REAL property tax relief for those who spend the highest proportion of their income in property taxes. Voting yes on 1B is a step towards real tax reform, a goal that we must achieve to ensure fair taxes for all," she added.

Tammy Greaton, co-director of the Maine People's Alliance said: "Question 1B provides important tax relief to many low and middle income households through the expansion of the Maine Resident Homeowners and Renters Property Tax Reimbursement Program. Our members have worked hard to promote the expansion of this program; we are gratified that the legislature added this substantial benefit to the competing measure with the Governor's support, and we urge the people to support it on the ballot. We truly believe that the state budget remains in a critical state, caused in part by the slow economy and not helped by Federal tax and budget cuts. Therefore the phase-in of increases in state funding for schools is necessary to preserve other vital state functions."

"Unlike the MMA proposal, Question 1B does not require $250 million in immediate state tax increases or program cuts," added St. John. "Rather, it will finance the state's gradually growing share of school funding within currently projected state revenue increases, leading Maine in the right direction at a sustainable pace."

Dana Connors, President of the Maine State Chamber of Commerce, is the chairman of Mainers for Real and Responsible Property Tax Relief, a bi-partisan campaign committee which advocates for a yes vote on Question 1B on the November 4 referendum ballot.

"Question 1B is a collaborative commitment to increase state support of education to 55% that we can afford without raising taxes and without cutting vital state services that are already strapped," said Connors. "It's the Maine way and deserves the support of all Mainers. We are assembling a broad coalition of government, business, education and community leaders from the legislature, local governments, non-profit organizations, health care providers and Maine's leading businesses. State and local governments working together, not against each other, to achieve an affordable commitment to increased state support of education is the Maine way of doing things."

George Campbell of Portland, former Mayor of Portland, serves as the group's Treasurer.

Other supporters include Rep. Patrick Colwell, Speaker of the House, Rep. Joseph Bruno, House Republican Leader, Senator Kenneth Gagnon, Senate Assistant Majority Leader and Rep. David Lemoine, Chairman of the Joint Committee on Taxation.

Endorsements for Question 1B to date include:

- Maine Hospital Association
- Maine Healthcare Association
- Maine State Board of Education
- Maine Coalition for Excellence in Education
- Maine Tourism Association
- Maine Merchants Association
- Maine Restaurant Association
- Maine Children's Alliance
- Maine State Chamber of Commerce
- Maine Substance Abuse Providers
- Maine Chiropractors Association
- Maine Women's Lobby
- Maine Council Churches
- Maine State Nurses Association
- Maine Peoples Alliance
- Maine Chapter of the National Association of Social Workers
- Maine Pulp and Paper Association
- Greater Portland Chamber of Commerce

The Maine Senate also passed the underlying legislation that supports Question 1B by a vote of 31-0 and the House by a vote of 112-22.


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