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Legislature Approves Compromise Over Taxes, School Funding

AUGUSTA, Maine - Maine school districts facing significant budget cuts got some relief from Augusta today, where the Maine House and Senate gave final approval to a measure that provides an additional $15 million dollars in state aid.

The legislature also approved a tax conformity measure that was a key to winning the support of Governor Paul LePage.

Gov. Paul LePage and the republicans in the legislature have made tax conformity their top priority so far this session. While it also is important for many Democrats, they were focussed on a significant loss of school funding to many districts, due to declining enrollments, and changing property valuations. For weeks leaders have been meeting privately and with Governor to work out a compromise, and a framework emerged this week that would provide $15 million in additional school funds. But some Democrats, including house majority leader Jeff McCabe, weren't satisfied.

"I would encourage all folks to vote for fifteen, but I say the work is not done," says McCabe. "There is still more work to be done. I think we will continue to hear from our constituents back home that we continue not to meet our obligation for education funding."

After the votes, the Maine Education Association released a statement calling for more money, and some Democrats pushed to have the amount raised to $24 million. But House Republican Leader Ken Fredette says it was hard enough to win GOP support for the $15

"A lot of our members in our caucus came a long ways from zero to come up to $15 million which we think will help the issue in regards to state valuation of these communities and some of that funding," Fredette says. "Now the other piece to this is the Governor's task force on education which I think needs to look at the funding formula."

The Blue Ribbon Commission, a request of Governor Paul LePage, will be charged with reviewing the school funding system. LePage will appoint ten of the 15 members AND plans to serve on the task force himself.

Senate Minority Leader Justin Alfond says that even with the extra money coming from Augusta, his city of Portland will still see a reduction of a million and a half dollars in aid. But Alfond says the compromise, made possible in part by passage of the governor's tax conformity measure, is a step in the right direction.

"In divided government you have to make compromises, you have to do and get the best you can," Alfond says. "I know this is not going to make every town whole and I know that those budgets are going to be very difficult for those school districts. That being said, we started this conversation with republicans being at zero."

Alfond credits Gov. LePage for his willingness to meet with legislative leaders from both parties to negotiate the compromise. Senate Majority Leader Garrett Mason says senate republicans have been focused on aligning Maine's tax laws with changes made in Washington

"I am most happy because we have done this before March 15, which is corporate filings and there are a lot of people out there that have made a lot of investments in business in the state of Maine depending on this conformity bill being passed so I am thrilled for those business and I am glad the schools got a little bit of money too, Mason says."

The governor is expected to approve the bills which are both emergency measures that will take effect on his signature.

Journalist Mal Leary spearheads Maine Public's news coverage of politics and government and is based at the State House.