Detailing Revenue Sharing Destruction

The Maine Legislature may slash state revenue sharing to roughly one-eighth of what state law requires. Right now, the 1972 law requiring the state to share 5 percent of sales and income tax money with municipalities means that $138 million should be distributed this year. But, the state’s keeping well over half of that, distributing just $65 million this year. In order to “balance” the 2015 budget and deal with recurring state agency cost overruns, that revenue-sharing figure may fall to $20 million. One example: By law, the City of Auburn should receive $3.36 million per year. If lawmakers cut the program even more deeply, Auburn will lose $3.1 million of that. The likely result statewide: Huge municipal and school cuts and higher local property taxes.

MMA’s projections of each town’s impact...




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