TABOR II Referendum

On November 3rd 2009, Maine voters will be asked:

"Do you want to change Maine law to require voter approval for state and local tax and spending increases over certain limits?"

We Urge a "NO" Vote

• TABOR II will hurt nonprofits and the communities they serve
  
  
• It would have been detrimental in 2006 and it would be more so today

About TABOR II
This initiative, An Act to Provide Tax Relief or TABOR II, would place additional statewide limits on the authority of: (1) the voters at town meeting; (2) the representative town or city councils; (3) the boards of county commissioners and the county budget advisory committees, and (4) the Maine Legislature to adopt budgets or enact tax changes that exceed certain limits established by formula in the TABOR II initiative.

To enact legislation or tax changes that would exceed the inflation + population growth formula when applied to the prior year’s budget for each state fund (general, highway, and other special funds), the measure must be approved by a majority vote of all the members of each House of the Legislature; and the measure must be approved by a majority of voters.

Visit these sites for analysis of TABOR II’s potential impact:

• Analysis of TABOR II by the Maine Municipal Association
  
  
• Maine Center for Economic Policy’s TABOR II Webpages

Why Nonprofits Should Care

Taxes and tax policy are important to nonprofits because taxes finance government programs and services, many of which are delivered by nonprofits or received directly by those served by nonprofits. Tax policy can and does create incentives for giving to charitable organizations. Tax policy can also serve as an economic development tool as long as infrastructure important to business, such as education, transportation, and vibrant cultures are preserved.

MANP feels that the tax policy put forth in this referendum poses a threat to the health of the nonprofit sector and the communities we serve for the following reasons:

• The formulaic approach will enforce spending cuts that are not based on sound public policy analysis that demonstrates a previously funded social need is either adequately met elsewhere, or no longer exists at previously funded levels.
  
  
• The growth formula will recalibrate the spending limit system for state government establishing Fiscal Year 2010 as the baseline year for all future growth in the State’s General Fund, Highway Fund and Special Funds revenue. Because of the current nationwide economic recession, TABOR II will have the effect of locking in state-level spending at historically low levels.
  
  
• The growth formula is flawed.  Governments buy different commodities than the general consumer.  The Consumer Price Index is not weighted to the types of purchases governments make in large quantities like personnel and healthcare.  These items increase at a rate far higher than the Consumer Price Index and therefore the spending limits imposed by the TABOR II growth formula do not allow government to keep pace with the economy.
  
  
• Because government spending will not be able to keep pace with the economy, we will not be able to make critical investments in our public infrastructure.  These investments are important to Maine’s economic development as business cultivation does not occur in an environment lacking solid educational, cultural, public safety and transportation systems.
  
  
• The requirement to notify all voters and hold special elections to override the spending limits will divert critical resources to the administration of such elections and away from public services.
  

Spread the Word

Use these fliers to educate your colleagues, staff, board members, volunteers and supporters:

• TABOR II and the Nonprofit Sector in Maine
• TABOR II and Education
• TABOR II and the Environment
• TABOR II and Health & Human Services
• TABOR II and the Arts