Municipalities and local politicians are hosting forums throughout the Midcoast to discuss the impacts of budgetary cuts for Fiscal Year 2014 –2015, as proposed by Gov. Paul LePage. That budget had shocked communities across the state when it proposed eliminating municipal revenue sharing.

Following the guidance of state statute, the Governor submitted his proposed budget to the Maine Legislature Jan. 11.

Read Gov. Paul LePage's entire proposed 2014-2015 budget here

Not to be confused with the biennial budget, the 2013 supplemental budget submitted by LePage has changed somewhat following Appropriations Committee meetings and will likely pass in the full Legislature, lawmakers said. With that task accomplished, they will now focus attention on the governor's biennial budget. In an introductory message to the budget, Gov. LePage writes, "This biennial budget balances priorities for the people of Maine by maintaining the crucial safety net for our most vulnerable while holding the line on our already too high tax burden."

Town officials are reacting to the proposed elimination of municipal revenue sharing, cuts to general assistance reimbursements, the elimination of property tax exemptions and other changes.

Where, When

The Town of Damariscotta's state budget forum takes place at Skidompha Public Library, 184 Main St., Feb. 15, 6-8 p.m.

Wiscasset, Feb. 18

Union Town Hall, Feb. 25, 6–7:30 p.m.

Rockland City Hall Council Chambers, Feb. 28, 6–7:30 p.m.

Waldoboro, March 18

The town of Damariscotta will host a public forum Friday, Feb. 15, to discuss the impacts this budget would have on property tax rates, municipal services and education. The Friday night forum is cohosted by democrat representatives, including State Senator Chris Johnson (District 20, Somerville) and State Representatives Mick Devin (District 51, Newcastle) and Bruce MacDonald (District 61, Boothbay).

In a recent newsletter, Damariscotta town manager Matt Lutkus wrote that a precise estimate of the impact of the proposed budget cuts is not possible, but the town would need to cut services, increase taxes, spend reserve funds or, "some combination of all three to make up a projected $200,000 shortfall."

He said that the town's current fiscal year budget is approximately $2.23 million, leaving out the county tax and education budgets.

Forums will also be held at Rockland City Hall and the Union Town Hall later this month.

"We have been hearing a lot of concern from municipal officials, school officials about the impact of the governor's proposed budget," Johnson said, adding the forum in Damariscotta would allow residents to air their concerns, to learn about the process and discuss possible solutions.

Alternatives, such as a one cent sales tax increase, have been suggested by some of Johnson's constituents. The forum will allow citizens the chance to make other suggestions to cover essential services. Johnson said not all of the recommendations the governor has made in his budget are bad, but the forums may help to see what people can live with.

Johnson will also be helping to lead other forums in the coming weeks: at the Lincoln County Communications Center in Wiscasset, Feb. 18, and another will be held in Waldoboro on March 18.

Knox County

Senate District 20 extends into Knox County, where other forums about the proposed budget are to take place. Knox County Democrats Sen. Edward Mazurek and State Rep. Jeffery Evangelos will host a forum at the Union Town Hall on Feb. 25. Several other representatives will join Mazurek for another forum at Rockland City Hall on Feb. 28.

Mazurek and Johnson each said they were not sure what parts of the governor's proposed budget will make it through the legislature, but constituent concerns prompted them to lead these forums.

"The loss in revenue sharing would devastate some municipalities," Mazurek said, acknowledging that some adjustments to the upcoming state budget will have to be made.

"One problem we have is that people are enjoying the services we have, but don't want their taxes to go up," Mazurek said. "Something's got to give somewhere along the line, whether it's services or taxes. There are going to be some hard decisions; there's no question about it."

The significant concern among his constituents is the funding for public safety and education, in addition to any hikes in property tax.

The Maine Municipal Association (MMA) released two bulletins this month and last month that outline the costs shifted to towns, as well as the possible reasoning behind the governor's proposed budget.

The Feb. 1 bulletin includes an article titled, "Municipal 'consolidation' emerging as rationale to discontinue revenue sharing." It refers to the governor's Jan. 25 radio address in which Gov. LePage said, "There are many towns and cities across our state that can consolidate services and save money."

The MMA bulletin referenced the 2011 Municipal Collaboration Report to counter any implications of excessive spending practices, inefficiencies or redundancies in town governments.

The following are some cuts in the governor's budget proposal highlighted on the organization's Jan. 18 bulletin:

Elimination of municipal revenue sharing: $284 million

Cut in General Assistance reimbursements: $7 million

Elimination of Homestead property tax exemption: $18 millon

The impacts on property tax to towns as a result of a two-year suspension of the state's revenue sharing program (which includes a 5 percent sales and income tax revenue otherwise distributed among towns) is also available on the MMA website. Here are some of the impacts on local towns listed in the MMA bulletin. The following numbers reflect the reduction of state revenue sharing on these towns.

Camden

2014 - $403,256

2015 - $418,239

Rockland

2014 - $1,047,926

2015 - $1,086,862

Friendship

2014 - $58,134

2015 - $60,294

Waldoboro

2014 - $432,688

2015 - $448,764

Wiscasset

2014 - $419,636

2015 - $435,228

Woolwich

2014 - $209,001

2015 - $216,767

Boothbay

2014 - $139,806

2014 - $145,001

Boothbay Harbor

2014 - $112,923

2015 - $117,118

Total

2014 - $138,355,576

2015 - $143,496,154

While in the midst of constructing a fiscal year 2014 budget for Damariscotta, Lutkus said he is working with town staff to come up with potential reductions in services in anticipation of a loss of state revenues. The forum will allow him, town staff and residents the chance to communicate their concerns to state legislators and representatives and to find ways to alleviate some of the impacts.