Alternative to TABOR set for unveiling today

Three of Maine's largest lobbying groups are expected today to propose an alternative to the proposal known as the Taxpayer Bill of Rights.

The Maine State Chamber of Commerce, the Maine Education Association and the Maine Municipal Association will have three weeks to convince voters that the alternative makes sense, and they should reject the proposal on the Nov. 7 ballot so a substitute measure can be crafted.

The alternative is based on research by staffers at the organizations, and on a document written by Sen. Peter Mills, R-Skowhegan.

Mills said the plan combines the best elements of TABOR, a spending cap proposal, and LD1, the law enacted by voters to control property taxes and boost state aid to schools.

Geoff Herman of MMA, Mark Gray of the MEA, and Chris Hall of the Chamber were the principal collaborators, Mills said.

"This is exactly what the state needs," Mills said Tuesday. "It is a proposal that the local people can live with."

Supporters of TABOR said they would not support any alternative plans, and they blasted the Maine State Chamber for not endorsing TABOR, as had been expected.

"The groups that are allegedly partnering to create this 'alternative' are the same people that have caused Maine's government spending problem to begin with," said Bill Becker, of Maine Heritage Policy Center, which drafted the TABOR proposal.

"The same people were making the same pleas two years ago for voters not to approve the property tax cap," he said. "We were promised historic and unprecedented relief. It didn't happen."

The chamber took a position against the so-called Palesky tax cap, and helped craft a compromise that ended up as part of LD1 a year later.

Commonly known by its acronym TABOR, sponsors say it would limit state, county and town spending increases to the rate of inflation plus population change. Budget increases for school districts would be tied to inflation and enrollment. Voters could override the limits, and they would also be called on to approve any tax or fee increases.

The Maine State Chamber, which represents about 5,000 businesses, devoted at least five meetings and hundreds of staff hours to TABOR. Chamber President Dana Connors said on Sept. 27 that the executive board was leaning toward supporting TABOR, primarily because members could not endorse the status quo. But at the time, Connors said he would continue to seek alternatives in collaboration with MMA, MEA and other groups.

Connors declined to be interviewed on Tuesday, saying he would wait for two Chamber press conferences scheduled today in Bangor and Lewiston.

Mills said that while the Chamber board was holding discussions with various stakeholders, he and Rep. Dick Woodbury, I-Yarmouth, discussed legislative proposals that would share the same goals as TABOR. Mills drafted several principles that could be adopted by legislative rule, and he circulated the ideas to leadership at the MMA. The heart of Mills' concept: Keep the government spending limits imposed by LD1, but give the law teeth by adding one of the voter approval requirements proposed in TABOR. Mills also suggested dropping the voter approval required by TABOR for any local tax increase, which he said would "unduly shackle local governments."

Officials from the Chamber, MMA and MEA met Oct. 5 at the Cumberland Club in Portland, Mills said. The alternative plan was ready, but an announcement was postponed until after the MEA board meeting this weekend, and a vote by the Chamber executive board on Monday night.

Mark Gray, executive director of the MEA, said members spent most of the weekend talking about TABOR, but he would not comment on any alternative plan. Through donations arranged from the National Education Association, the MEA has contributed at least $646,000 to the anti-TABOR campaign, or roughly 70 percent of the total raised. The MMA is also a major contributor.

"We are definitely going to be there and be supportive," Gray said of today's press events.

Mary Adams, leader of the political action committee supporting TABOR, issued a press release Tuesday that was sharply critical of the Chamber.

"Unfortunately, 90 percent of Maine businesses are small businesses, and this 11th-hour desperation maneuver would hurt them the most," Adams said. She noted recent endorsement from the Maine chapter of the National Federation of Independent Business, the Portland Regional Chamber of Commerce and others.

Outgoing House Speaker John Richardson, D-Brunswick, said neither he nor Senate President Beth Edmonds, D-Freeport, were asked to participate in any discussions about an alternative.

"It would be more appropriate for legislators on a bipartisan basis to take this up on the first day of the session," said Richardson, who opposes TABOR. He said there is no reason the next Legislature could not enact further tax reform, using LD1 as a foundation.

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