HomeMy WebLinkAbout2009-02-09 09-075 RESOLVECOUNCIL ACTION
Item No. 09 075
Date: 2-9-09
Item/Subject: Resolve, Expressing the Concerns of the Bangor City Council Regarding the
Proposed State of Maine Biennial Budget.
Responsible Department: Executive
Commentary
Revenues from State government are the second largest source of municipal funding in Bangor,
representing over 30% of our total revenues. The Governor's proposed biennial budget
significantly and disproportionately reduces a number of local aid programs, including Municipal
Revenue Sharing and Local Road Assistance Funding, a program that supports our street paving
and reconstruction program and the summer and winter maintenance we provide to state
highways. The funding for both of these programs is automatically reduced as the state
revenues they are based on go down. In addition to these equitable and automatic reductions,
the budget proposed an additional 10% reduction in revenue sharing and a $5 million transfer of
local road assistance funds from the State highway fund to the State general fund, resulting in a
$100,000 (20%) reduction in funding to Bangor. Finally, aid to education is proposed to be flat
funded at this year's already reduced level, a cut of over $500,000. Such reductions will require
property tax increases, service reductions, or both.
The attached resolve calls upon our State Legislative relegation to exercise its best efforts to
mitigate the impact of proposed State budget cuts on the City and its property tax payers by
working to ensure that the reductions to Municipal Revenue Sharing and Local Road Assistance
are proportionate to the revenue losses experienced In State sales, income, and fuel taxes, take
steps to guarantee that reductions are restored at the earliest possible time, and support efforts
to make certain that federal stimulus funds received by the State are equitably shared with local
govemments in order to mitigate property tax increases or local service reductions.
Department Head
Manager's Comments:
This has been reviewed and is recommended by the Government Operationsmittee.
City Manager
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Finance Director
Page _of_
Solicitor
09 0'75
Assigned to Councilor Gratwick February 9, 2009
CITY OF BANGOR
(TITLE.) Resolve, Expressing the Concerns of the Bangor City Council Regarding the Proposed
State of Maine Biennial Budget.
WHEREAS, the Governor has proposed a biennial budget containing numerous program cuts
and reductions; and
WHEREAS, a number of these reductions affect programs that provide financial support to
Maine's municipalities; and
WHEREAS, since over 30% of Bangor's total revenues come from State government, significant
reductions in state support will require property tax increases, service reductions, or
a combination of both; and
WHEREAS, certain of these reductions, particularly the proposed reduction in municipal revenue
sharing, will have a disproportion impact on municipalities; and
WHEREAS, 5.1% of state sales and income taxes are provided to municipal governments in the
form of revenue sharing and, as state revenues fall, so do the amounts provided to
municipalities; and
WHEREAS, the budget proposes that, in addition to these automatic reductions, revenue sharing
be cut an additional 10%, resulting in a disproportionate impact on municipalities;
and
WHEREAS, the cut will be implemented through a two-year reduction in the revenue sharing
percentage from 5.1 to 4.6% and we are also concerned that this percentage
reduction may continue or become permanent in the face of chronic state budget
shortfalls; and
WHEREAS, the budget also proposes that Local Road Assistance, a program funded through the
Highway Fund and which supports repaving and reconstruction of local roads and
costs associated with municipal maintenance of state highways, be reduced during
the second year of the budget by the transfer of $5 million to the General Fund; and
WHEREAS, here again, the amount going to Local Road Assistance is a fixed percentage of the
Highway Fund and will automatically decline as Highway Fund Revenues decline;
and
IN CITY COUNCIL
February 9, 2009
Motion Made and Seconded
for Passage
Passed
� L A ck/y�l h l )4j
DEPUTY CITY CLERK
# 09-075
R E S O L V E
(TITLE,) Exvressin¢ the Concerns of the
Bangor City Council Regarding the Proposed
State of Maine Biennial Budget
Assigned to Counciloi�—"411a�
09 0'75
WHEREAS, the transfer of $5 million will, therefore, result once again in a disproportionate
impact on local governments; and
WHEREAS, the City of Bangor will see a reduction of about $100,000 in local road funding, a cut
of over 20%; and
WHEREAS, as a matter of equity, the proposed $5 million transfer should be equally shared by
all programs and agencies supported by the Highway Fund; and
WHEREAS, other reductions in such areas as Tree Growth Reimbursement and Code
Enforcement Officer Training will also impact municipalities; and
WHEREAS, while we recognize that the State faces a budgetary shortfall that must be
addressed, cities and towns in Maine face a similar crisis due to reductions in
automobile excise taxes, assessed values, and charges for services; and
WHEREAS, while all levels of government must adjust to today's economic and fiscal crisis,
reductions should be equitable and, to the greatest extent possible, avoid simply
shifting expenses from such broadly based taxes and sales and income to property
taxes; and
WHEREAS, we urge our State Senator and State Representatives to work to mitigate the impact
of reductions in state shared revenues on Maine's cities and towns and their
property tax payers; and
WHEREAS, should the federal government approve a stimulus plan that provides financial aid to
State Government, the fiscal relief provided should be shared with local
governments;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
We call upon our State Legislative Delegation to exercise its best efforts to mitigate the impact
of proposed State budget cuts on the City of Bangor and its property tax payers by working to
ensure that the reductions to Municipal Revenue Sharing and Local Road Assistance are
proportionate to the revenue losses experienced in state sales and income taxes and highway
fund revenues, take steps to guarantee that reductions, if any, are restored at the earliest
possible time; and support efforts to make certain that federal stimulus funds received by the
State are equitably shared with local governments in order to mitigate property tax increases or
local service reductions that will otherwise result.