FAYETTE -- In the eyes of one central Maine mayor, two tax-related initiatives on November's ballot are exactly what Maine governments need: a wake-up call to cut spending and deliver services more efficiently.

In the eyes of another, the initiatives threaten to deprive towns and cities of crucial revenue and transform Maine into a state governed by political campaigns.

Waterville Mayor Paul LePage and Augusta Mayor Roger Katz squared off in a debate Thursday night about two referendum questions voters will decide on Nov. 3. More than two dozen attended the forum at Fayette Central School.

Question 2, if it passes, would cut excise tax rates by an average of 55 percent on vehicles newer than six years old.

Question 4 would institute a so-called taxpayer bill of rights linking state and municipal government tax increases to rates of inflation and population growth. Voters would have to approve larger spending increases.

LePage and Katz, both Republicans, took opposing views on the questions.

"We've given the state a blank check for way too long," LePage, a 2010 gubernatorial candidate, said of the excise tax. "It's time that we reel them in a little bit and we make them think outside the box. It can be done."

LePage characterized both referendums as incentives for governments to streamline spending rather than relying on taxpayers.

"There's another (revenue source): getting more efficient in government," he said. "There is still plenty of money that can be taken out of budgets."

Excise-tax rates are set by the state, but collected and spent by municipalities.

If excise taxes are cut, Katz said, those cities and towns will need to make up for the lost revenue.

"I don't know what you do. Are you going to lay off more teachers? Are we going to have three cruisers in Augusta at night instead of four?" Katz said. "You cut out this revenue, you give 32 percent of the people a tax break and you end up raising property taxes on 100 percent."

LePage acknowledged property taxes could rise as a result of an excise tax cut.

"In some instances, yes," he said, but "the (excise) money goes back to the people. It becomes disposable income."

Katz disputed LePage's claim there were more cuts to be made in municipal government.

"We're doing a pretty good job of getting the fat out already, around Maine," he said.

Katz also said that trimming happened without a taxpayer bill of rights tying governments' hands.

"You don't need to have it," he said.

LePage said passing TABOR wouldn't necessarily mean less government spending.

"All this is doing is saying, 'OK, elected officials, we're going to let you increase taxes to a certain amount. If you go beyond that, you need to ask us,'" he said. "It's giving you, beyond a certain level of tax increases, the right to speak out."

That's an unmanageable system of government, Katz said.

"You get into this whole campaign thing, with sound bites, and who's got the best sign," he said. "That's no way to govern."

Matthew Stone -- 623-3811, ext. 435

mstone@centralmaine.com