State stays below
spending caps by large margin
Property taxes continue to grow more slowly, state under spending limit
by $221 million
February 17, 2009
AUGUSTA – Maine House Majority Leader John Piotti announced that
the State of Maine has stayed under the statutory spending caps imposed
on government for a 4th straight year, by $221 million. Local property
taxes also continued to grow more slowly, recording a 3.9 percent increase
for 2008. Prior to the passage of LD 1 local property taxes had grown
at a rate of more than 5 percent.
The state spending caps were put in place by LD 1, legislation that was
passed in 2005 and set spending caps for state, county, local governments
and school districts. Since the enactment of those caps, the state
has remained below the caps by varying amounts. 2008 saw the state
spend far less than the limit, staying 6.7 percent below the cap.
“
Its good news that property taxes and general taxes are being contained,” said
Majority Leader Piotti. “We still have work to do, but I am very
pleased that the state has kept its expenditures below the limits set
in LD 1, and we will continue to strive for these positive results.”
The goal of LD 1 was to move Maine’s tax burden in to the middle
one third of states by 2015. If the current pace of state spending and
lower tax growth continues, that goal is very attainable. The current
challenges of the biennial budget will cause the state to continue to
reduce spending, but the Legislature is committed to do so while maintaining
the state’s commitment to essential services like education and
health care.
“
Maine state government is living within its means,” said Majority
Leader Piotti. “The challenge will be in keeping our commitment
to the services that state government provides. I believe that the good
bipartisan work that was completed on the supplemental budget provides
a framework for how we achieve that goal going forward.”
The Appropriations and Financial Affairs Committee is currently holding
hearings on the biennial budget, the state’s fiscal plan for
the next two years.
Contact:
Majority Leader John Piotti, 287-1430
Ryan MacDonald, legislative aide, 287-1430
Kyle Leighton, communications director, 287-1433
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