While it’s commendable that the governor is working to pay off the state’s hospital debt, his proposal to eliminate revenue sharing with municipalities for the next two years would be devastating to communities and their taxpayers.

Gov. Paul LePage’s proposed $6.3 billion biennial budget eliminates revenue sharing, for taxes like excise, which are shared between the town or city and the state.

Shifting further costs to municipalities would have major detrimental impacts on Maine people. Many Mainers are already struggling to make ends meet ”“ if they have a job or income at all. Here in Biddeford, several large employers have closed in the last few years, including the Hostess Bakery just this November, resulting in a loss of approximately 300 jobs.

At the same time, property taxes have stayed the same or increased.

In Biddeford, the annual budget increased 8.12 percent for the current fiscal year, which added $3 million compared with the previous year.

To keep services at the same level, municipalities often need to at least maintain the previous year’s spending to meet expectations ”“ unless a major, one-time expenditure were the reason for a spike in municipal spending.

That means in cities like Biddeford, the increasing budgets are likely to continue.

And the hit from the governor’s plan in Biddeford would be about $1.6 million. That’s $1.6 million that the City of Biddeford would not receive in revenue.

Other cities and towns of similar size would also lose significant funds under the proposal. In Sanford and Saco, the loss would be about $1.8 million for each.

Increases in municipal budgets has led to displeasure with school budgets. In Biddeford and Saco, school budgets went to voters several times, as that is the only place voters felt they could control spending. City councils in those communities approve the municipal budgets.

The school budget in Biddeford went to voters four times, and ended up being nearly $1 million less than was originally proposed.

And it wasn’t just Biddeford and Saco that had difficulty in passing a school budget or coming up with a funding plan that would be palatable to voters.

School districts have lost federal stimulus funds, which helped buoy their budgets for several years, and also face continued reductions in state aid to education. The governor’s plan would flat-fund education, resulting in even tighter budgets for the next two years as district officials try to cope with curtailment orders and rising costs.

It is important for the state to pay its debt to hospitals, which is why the governor’s proposal to use liquor revenues to pay that debt should be considered.

However, gutting municipal and school budgets to make up for losses at the state level is not fair and not likely to get very far in the newly Democratic-controlled Maine House and Senate.

Legislators will need to get creative and consider all proposals going forward ”“ including “revenues,” or taxes.

Republicans boasted that they cut taxes last year, but it really didn’t make much of a difference for the majority of working Mainers. Wealthy residents and large corporations do not need continued tax cuts, unless they can tie those reductions to specific jobs that have been or will be created. Revenue is an important part of any government or business structure, and the state needs to consider it while also looking at spending.

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Today’s editorial was written by City Editor Robyn Burnham on behalf of the Journal Tribune Editorial Board. Questions? Comments? Contact Managing Editor Kristen Schulze Muszynski by calling 282-1535, Ext. 322, or via email at kristenm@journaltribune.com.