TABOR Back From The Dead

You probably thought the idea of TABOR was dead in 2006.  You were wrong.  Mary Adams, who has been leading tax revolts in Maine for three decades was in Augusta today urging legislators to support a new version of the Taxpayer Bill of Rights, which would institute tax and spending limits on state and local governments and require citizen approval to exceed those limits.

Adams testified before the legislature today, and was joined by several other speaking both in favor and in opposition to the bill. The Maine Chamber of Commerce came out in support because “there are no other options”, and the Maine Municipal Association came out against it.

TABOR II is a citizen initiative, and it proposes to:

• Stem the growth of Maine’s general fund, highway fun and other special revenue funds, so that it is only allowed to increase in line with increases in population and inflation
• Automatically place any excess revenues in a budget stabilization fund as well as a tax relief fund
• State tax increases would require a majority vote of the House and Senate and majority approval of voters
• State expenditures would require a majority vote of the House and Senate and majority approval of voters to exceed the limits placed on them
• It would require voter approval of municipal and county expenditures that exceed spending limits
• It would require voter approval for the annual indexing of motor fuel taxes.

Given the nature of the bill as a citizen initiative, it must be voted up or down by lawmakers – they will not be able to amend it.  If they pass it, it becomes law with the Governor’s signature.  If they reject it, it goes to the voters.