Republican Proposal to Restore $368 Million to the State’s Budget “a Step in the Right Direction”

Augusta, Maine (Thursday, June 6, 2013) Garrett Martin, executive director of the Maine Center for Economic Policy (MECEP), called yesterday’s proposal from legislative Republicans to restore $368 million to the state budget “a step in the right direction.” But he cautioned members of the Legislature’s budget-writing appropriations committee to reject the Republicans proposal to tax nonprofits and take over the assets of the Maine Health Access Foundation to raise additional revenues and seek other “realistic revenue alternatives.”

“Yesterday, legislative Republicans acknowledged the need to break with the governor and restore $368 million to the state budget in order to avoid property tax increases on hardworking Maine families,” Martin said. “Some of the most conservative members of the Republican Party joined in this appeal that includes new revenue. MECEP has maintained all along that Maine working families need a budget that funds our schools, protects our elderly and disabled, and gives our economy a boost without crushing property tax increases. Republican admission that additional revenues are needed to balance the budget is a step in the right direction.”

Martin noted that the challenge for the appropriations committee will be to identify the best sources of revenue to pay for the Republican proposal.

“Yesterday’s proposal did not include realistic revenue alternatives,” Martin said. “The proposals to tax nonprofits and take over the assets of the Maine Health Access Foundation amount to a ‘Hail Mary’ pass in the wrong direction. There are much better alternatives that we urge members of the appropriations committee to consider.”