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STATEHOUSE NOTES

Tax issue on June ballot

By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer

AUGUSTA -- With all the attention focused on the primaries, it's easy to forget voters will make another important decision in June.

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A people's veto of tax reform is on the ballot, too.

The question is this: "Do you want to reject the new law that lowers Maine's income tax and replaces that revenue by making changes to the sales tax?"

The campaign is beginning to take shape, with supporters of the law -- which makes them opponents of the repeal -- hiring Kay Rand and Larry Benoit of Bernstein Shur to run the campaign. On the other side, it's a two-pronged attack from Maine Republican Party Chairman Charlie Webster and Curtis Picard of the Maine Merchants Association.

The debate is about a law passed last year that lowers the top income tax rate, expands the sales tax to new goods and services and raises the meals and lodging tax. The idea was to rebalance the state's sources of revenue to help lessen the severity of budget swings and lower income taxes for most Mainers.

Supporters say an increase in the meals and lodging tax will affect tourists more than Mainers, thereby shifting some of the state's tax burden to visitors.

"We think we've got a really compelling case for the tax reform and tax relief law," Benoit said. "We're confident Maine voters will recognize the benefits of the new law."

Opponents say the law removes the current system of income tax exemptions and deductions, which will mean an increase in taxes for some. They also don't like the 5 percent sales tax expansion to car repairs, which they say will hurt those with lower incomes.

Webster sent letters to heating and gas technicians and hair stylists in recent weeks -- neither of whom are affected by the law -- to urge them to donate money to help kill it. He said although the sales tax expansions don't extend to those two businesses, he believes Democrats will eventually try to expand to those areas.

"It's terrible public policy that gives these liberals another way to take money from the working class," he said.

DNC chairman to headline convention

Democratic National Committee Chairman Tim Kaine will be the keynote speaker at the Maine Democratic Party Convention set for May 21 and 22, the party announced Friday.

Kaine, the former governor of Virginia, was the first statewide official from outside Illinois to back President Barack Obama, according to the party. The Maine convention will be in Lewiston this year.

"His attendance at the convention highlights the importance of Maine's upcoming gubernatorial election and our place on the national stage," said Maine Democratic Party Executive Director Mary Erin Casale, in a statement.

Registration for the convention is now open. Go to www.mainedems.org/convention for more information.

New payroll data now online

The Maine Heritage Policy Center recently updated its online database of state government information to include 2009 payroll data of state government and K-12 education.

The Web site -- MaineOpenGov.org -- lists state employee salaries, vendor payments, school payrolls and spending, and a way to track property tax growth in every Maine city and town.

The new information was added during Sunshine Week, a celebration of the importance of transparency in government.

Quality of place bill

Rep. Nancy Smith, D-Monmouth, says a new state law will help spark economic development by building on things such as natural resources, historic downtowns, arts and recreation.

The law establishes a 12-member Quality of Place Council that would establish standards and guidelines for "regional quality of place investment strategies."

"By designing a system to share information, rather than prescribing specific actions, the Legislature is truly setting the groundwork for building a stronger, sustainable economy in Maine," she said in a statement.

Gov. John Baldacci signed the bill into law last week.

Property tax help

Rep. Kathy Chase, R-Wells, sponsored successful legislation to help elderly Mainers stay in their homes even if they have trouble paying property taxes.

The law, which was signed by Gov. John Baldacci earlier this month, allows a municipality to establish a property tax deferral program for eligible senior citizens. Taxes could be deferred until death of the homeowner or sale of the property.

Municipalities would not be required to offer a program, but now have the option to establish one.

"This is a long-needed safety net for fixed-income folks who face high property taxes simply because their house has appreciated in value," Chase said in a statement.

Silver alert program

Another bill to help the elderly recently passed the House and Senate on preliminary votes.

Rep. Peggy Rotundo, D-Lewiston, sponsored a bill to establish a "Silver Alert" program that can be used for missing adults with dementia or developmental disabilities. It would be modeled after the Amber Alert system for abducted children.

The bill, L.D. 1610, will face more House and Senate votes this week.

Girls Day

The State House halls were packed with teenagers last week when 100 girls from across the state participated in the Maine Women's Policy Center's 14th Annual Girls' Day.

The girls debated legislation, worked with lobbyists and journalists, and met with Gov. John Baldacci, according to the center.

The event is held each March to commemorate Women's History Month.

EQME awards dinner

The Equality Maine Foundation's 26th Annual Awards Dinner will be held Saturday in Portland.

The group will be honoring several people for their work on the gay-marriage campaign and for other issues important to lesbian, gay, bisexual and transgender Mainers.

Sen. Dennis Damon, D-Trenton, the lead sponsor of the gay-marriage bill, will receive the Larry Connolly Award for legislative leadership.

The Religious Coalition for the Freedom to Marry and Catholics for Marriage Equality will be honored for their work.

Jimmy Lucibello of Ogunquit will receive the Cameron Duncan Award for service to the HIV/AIDS community.

And Out Front Awards that honor volunteer leadership will go to: Tom Reynolds and Ira Bittues of Lewiston; Ellie MacCallum of Windham; Carla Hopkins and Victoria Eleftheriou of Mount Vernon; Lucie Bauer and Annie Kiermaier of Rockport; David Cox of Orono; Meredith Hunt and Melissa Hamkins of Bowdoin and Tom Muise and Brian Dustin of Biddeford.

This week

On Monday, the Labor Committee will meet at 2 p.m. to continue discussion on a bill to prevent businesses from firing someone for using up to five sick days.

The House and Senate are scheduled to meet five days this week, with the House coming in at 9 a.m. and the Senate at 10 a.m.

Susan Cover -- 620-7015

scover@centralmaine.com