Impact of State funding

Impact of State Funding.

On Senate district 14

Municipalities (Most of Oxford County)

There is no question that State funding provided to municipalities as a substantial impact on local property taxes and the local economies. In Senate District 14, which includes Rumford, Mexico, and most of Oxford County, as well as Jay in Franklin County, four (4) major State funded programs reduce the local property tax burdens by $23.1 million in 28 municipalities. In addition, there are several other much smaller programs that also provide funding to municipalities in the District. The major state funded programs and the amount of funding provided to the 28 municipalities in Senate District 14 in FY 2012 are as follows: Revenue Sharing $2,826,034; Homestead $774,895; Circuit Breaker $743-489; General Purpose Aid to Education $18,709,447. Total: $23,053,865.

With the exception of the Homestead Property exemption, the other three programs are not fully funded by the State in order to reduce the size of Maine's general Fund Budget.

Based on the Senate District's percentage of total state spending in each program, full state funding of each program could increase State funding to Senate District 14 by %5.5 million as shown below. Under current funding, Senate District 14's share of total program funding is as follows: General Purpose Aid = 2.1 percent, Revenue Sharing = 2.0 percent, Circuit Breaker = 2.02 percent.

If General Purpose Aid were funded at 55 percent of the total cost of education, an additional $190 million would be required, and Senate District 14 municipalities would receive an additional $4 million.

If the Circuit Breaker were fully funded at current demand, an additional $20.2 million in State funds would be required, and residents of Senate District 14 would receive an additional $3500,000 in additional funding.

If Revenue Sharing were fully funded, an additional $40 million in State funds would be required, and the municipalities in Senate District 14 would receive an additional 1,200,000.

These three state programs have been cut or underfunded by a total of $150,200,000, and the impact on Senate District 14 towns has been a education of $5,543,400 in State revenues.

When the State cuts back funding to municipalities, it has a significant adverse impact that may result in increases in local property taxes and/or cuts in services and municipal employees. The local economy suffers as well. You can imagine the impact that an additional $250.2 million would have on municipalities and their economies.

In addition to the programs listed above,health care providers in Senate District 14 received $14.15 million in Medicaid funding in FY 2012. These funds are not provided to clients, but to providers such as hospitals, nursing homes, assisted care facilities, physicians, pharmacies, and other professionals who employ a significant number of employees. In addition, these funds, two-thirds of which are federal funds, produce spin-off and multiplier effects that are far greater than the level of Medicaid funding provided to these providers.

Best Regards,

Senator John Patrick