Posted on 06/15/2005 6:39:14 AM PDT by SheLion
Dems propose $125M in cuts
AUGUSTA - Majority Democrats on the Legislature's Appropriations Committee repealed a $250 million, budget-balancing loan Tuesday, replacing it with $125 million in spending cuts and a $1 hike in the state cigarette tax.
At $2 per pack in taxes, Maine would have the third highest cigarette tax in the country, according to Dan Riley, an Augusta-based lobbyist for the tobacco industry. The increase would effectively drive up the over-the-counter price for a pack of premium cigarettes like Marlboro from $4.19 to $5.19.
"We have selected some new revenue to bring us to the $250 million target," said Sen. Peggy Rotundo, D-Lewiston and co-chairman of the Appropriations Committee. "We cut as far as we felt we could."
Gov. John E. Baldacci said Tuesday he will support the cigarette tax increase as the best available solution to eliminating the $250 million state revenue bond included in the two-year, $5.7 billion state budget to take effect July 1. Like the 8-5 vote on the budget panel Tuesday, the state budget was advanced in March by majority Democrats who believed the $250 million loan was an acceptable alternative to deep spending cuts in state programs.
The proposal now goes to the printer, where it will be assigned an LD number. Legislative leaders essentially abandoned a planned Wednesday adjournment and anticipated debate on the new tax-and-spending package would begin sometime Thursday in the House.
Republicans on the panel have prepared their own proposal to reach the $250 million target that relies on severe cuts to state health care services and defers salary increases to state employees. The package also restores numerous proposals that were rejected by Democrats on the Appropriations Committee.
"A lot of our initiatives are about the size of state government and the costs associated with state employees," said Sen. Richard Nass, R-Acton and the senior Republican on the budget panel.
Republicans were essentially bypassed by Democrats in March when the majority budget was passed. The GOP responded by launching a people's veto of the borrowing component with the hope of overturning the provision at the ballot box in November. About 40,000 of the required 51,000 signatures have been gathered, according to Sen. Peter Mills, R-Skowhegan. In response to Tuesday's vote by the Appropriations Committee, Mills indicated final approval by the Legislature of either proposal to eliminate the borrowing provision of the budget was all that was needed to terminate the people's veto effort.
"When it looks like this has passed in the House and Senate, we'll declare victory and the signature-gathering effort will stop," Mills said.
In a closely divided House and Senate, however, such conclusions cannot be presumed lightly. Republicans and some Democrats were not sure how the majority report from Appropriations would be received by rank-and-file Democrats in the House. The Democratic plan:
. Cuts $10.4 million from mental health programs by revamping the delivery of those services.
. Saves $5.9 million by delaying school construction projects by one year.
. Cuts $2.2 million from the DirgoHealth program.
. Cuts $5.5 million from the Veterans Tax Reimbursement program.
. Cuts about $7.2 million from the Business Equipment Tax Reimbursement program.
By contrast, the GOP plan:
. Delays $20 million in state employee salary increases until the next budget cycle.
. Cuts $20 million in health care services to poor working Mainers.
. Transfers $32 million from the DirigoHealth program to the General Fund, leaving DirigoHealth with a balance of about $6 million.
. Eliminates the governor's Office of Health Policy and Finance with a $2 million deappropriation.
. Eliminates the reduction to the BETR program proposed by Democrats.
Rotundo said Democrats could not support the level of cuts Republicans wanted to make to the state's social service programs.
"In order to cut more we were going to have to get into those programs that provide health insurance for some of the poorest people in the state - the working poor," she said. "We just didn't want to go there. We did not want to remove thousands of people from programs that were providing them with some kind of health care."
"The taxing power...must not be used to regulate the economy or bring about social change."
Ronald Reagan - 1981
Sounds wonderful! If I wasn't so dug in here, I would consider it. My roots run deep now after living here for 20 years.
They all say that. Just like they all say things like, "Well, the majority view is---" or, "Studies have shown---" and, "I don't know anybody who voted for Nixon."
You mean....it might not be true that I was the only one she heard from???
Pretty much.
If it were me, I'd counter that line with, "Well what'd you expect? The anti-smoker legislations in this state have driven most smokers away and out into more friendly areas; which brings into question as to how much revenue you politicians think will be generated if there's mo smokers left to pay the bill... HMMMMM?"
Well, I'm just sick Randall. :(
Plus, she is a good friend, so I couldn't say something like that to her. But I am just sick. I can't believe that I am the only smoker in this whole state that gives a damn.
I've corresponded with her for several years now.
But take me: you know I have been rolling my own for over 4 years now and am no longer feeding taxes into the state coffers. But I still believe in helping my fellow Mainers the best I can by fighting for them.
I wonder if anyone really cared. I wonder if anyone really listened.
Well, sometimes I throw my hands in the air and say to hell with it. This is my last fight.
Take a few days off and here I am again. heh!
I guess I am like the bad penny.....keeps coming back. :)
So sad, for once the ball gets rolling it takes a lot of work to stop it's motion.
I suppose a portion of that generated revenue will help support the children's Ritalin habit in public schools who might be normal children and stare out the window too much?
IMO, that should be "a flower that blossoms again in the spring".
Yep, that is a MUCH better comparison! : )
Ah that's sweet. Thank you!
I'm so sorry!
I thought the states were turning away from these tobacco "user" taxes this year. Great posts all. I hope Sen. Peggy Rotundo, and all the other who passed the bill, have just issued the "kiss of death" to the Maine state budget and you can reduce their anticipated revenue to zero!
I also hope you get out your check books and order from Sovereign Indian retailers or roll your own the way SheLion suggested. There are a lot of smokers who will be happy to supply you with "safe" retailers, who will continue to keep your ordering records private.
I wonder who the new Al Capone of tobacco distribution in Main will be?
I'd love to find out!
Maine lawmakers are so stupid! If they would have left the cigarette tax alone, their revenue would have run along smoothly. But now with this newest tax increase, more Maine smokers are throwing their hands in the air and finding cheaper smokes elsewhere. Leaving Maine Budget Revenue running shorter then it is already.
Got to keep those pet programs alive you know. heh!
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