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Legislative wrap-up: Truth and consequences
George Smith Kennebec Journal & Morning Sentinel 04/09/2008

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Every government action has consequences, some planned, some unanticipated. It's the surprises that hurt because they are often negative.

You can expect many surprises after this Legislature adjourns. But unlike most times, some of the negative impacts of the Legislature's recent decisions are known ahead of time.

For example, you have read that broad-based taxes were not increased. And it is true that they did not raise income or sales taxes. But that other broad-based tax, the property tax, will continue to rise as a direct consequence of the actions taken by the Legislature. They know this.

The drive to penalize small rural schools through the Essential Programs and Services funding formula continued this session, and lawmakers' decision to substantially reduce total school aid will force towns with small schools to raise property taxes, even as those schools make severe cuts in programs and services for students.

You need only read this newspaper to notice the impact as town after town announces substantial property tax hikes. No reasonable person could conclude that the consequences of the Legislature's actions did not directly raise property taxes.

One unintended consequence of the school consolidation mandate has been higher property taxes for taxpayers in many consolidated districts. Intended to cut administrative costs, the consolidation mandate is reaching deeply into the classroom, negatively impacting students -- perhaps another unintended consequence although you have to wonder if our political leaders knew this would happen when they enacted that law.

In my sportsmen's corner of the world, there is a good example of unanticipated consequences in an action taken last year by the Legislature: a new law requiring alien (non-citizen) hunters to hire a guide to hunt moose, bear and deer.

Canadian hunters by the bucket load demanded and received refunds on their expensive big game licenses, costing the Department of Inland Fisheries and Wildlife tens of thousands of dollars. Some Canadians signed up to take DIF&W's test to become guides themselves, and DIF&W was required to provide translators for applicants who spoke French, another unanticipated cost.

North Maine Woods, the recreational manager for 30 private owners of 2 million acres where many Quebec sportsmen hunt, lost 19 percent of its traffic in the fall hunting seasons. To make that up, every Mainer this year will pay an extra dollar a day to access and enjoy that land.

Ah, if we'd only known!

One interesting and obvious consequence of increases in taxes on items like cigarettes is the decision by purchasers to buy elsewhere -- New Hampshire for example. Not long ago Don Carrigan, one of Maine's longest serving and most credible news reporters, anchored a TV 6 series on the differences between Maine and New Hampshire. Carrigan found a lot of reasons Mainers were making purchases -- and sometimes even moving -- to New Hampshire. Most of those reasons are unintended consequences of legislative actions.

Actually, some of those reasons are the unintended consequences not of action, but of inaction on the problem of high Maine taxes. Yes, even inaction brings unintended consequences.

The Maine Heritage Policy Center conducted a recent survey that counted Maine cars at shopping centers in New Hampshire and -- this could not be a surprise -- they counted a lot of us down there in our neighboring state buying untaxed items.

New Hampshire has transitioned from a slogan of Live Free or Die to Shop Tax Free and Prosper!

We'll be facing other unanticipated consequences of this legislative session's decisions very soon, because legislators did not put the state budget on a track to match revenue shortfalls that are expected for the next year and a half. Come April 15, expect a shocking loss of corporate and personal income tax revenue to be announced as the full impact of our economic problems comes home to roost when we file our income tax returns.

They've done nothing to anticipate or deal with this likelihood in the current round of budget balancing decisions. And the consequence of that inaction will be apparent when they dig out the cutting board and make more budget reductions down the road.

And speaking of roads, the consequence of a steady decline in the percentage of the state budget devoted to bridges and highways has finally come home to roost, with more than 150 dangerous bridges and roads riddled with so many potholes we might as well stock them with trout and go fishing. Actually, that might be called a good unintended consequence!

George Smith is executive director of the Sportsman's Alliance of Maine. He lives in Mount Vernon and can be reached at george@samcef.org.

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