Question #1 proponents rightly argue that tax reform is needed; however, achieving the reform by exclusively targeting municipalities is wrong. Under the Question #1 proposal only municipal government is exposed to the massive reductions. State and County government, Utility Districts, and School Administrative Districts won't be directly impacted by the legislation. In short, if passed, the Tax Cap will have a devastating impact on the majority of municipal operations throughout the state; however, the very hardest hit will be rural service centers such as Dexter.

Question #1 supporters also allege that municipal spending is out of control. The fact is Dexter's municipal leadership has been extremely frugal in managing the Town's finances. As a matter of comparison, the Town's property tax mil rate in 1997 was 21.0 and the mil rate for the current year is 21.7. In fact, this year our municipal expenditures were more than $200,000 dollars less than the previous year! All of this has occurred during a period of escalating costs for operation, increases in mandated responsibilities from state and federal government, and growing demands for local services and programs.

Advocates of Question #1 suggest that municipal leaders are attempting to use "scare tactics" to influence voters. As a Town Manager I deal in reality and I'm confident that the vast majority of our residents want the facts. In this case the reality is that if Question #1 passes Dexter will experience an annual revenue shortfall of more than $1.2 million. Our conservative projections are that after the local school district and county are paid we'll have only about $1.5 million available annually for municipal operations. After deducting about $700,000 in "fixed costs" there will be very little left to actually operate the Town. If the Tax Cap Initiative is successful citizens can expect extreme changes in services and programs to begin appearing during the months following the November election. As things stand now we anticipate eliminating of 23 of 44 municipal jobs, closing several town facilities, terminating a number of programs, downsizing or elimination of departments, and loss of a substantial level of our public safety infrastructure.

I urge voters to look very hard at this issue before casting your ballot. Not only does this particular Tax Cap Initiative threaten our municipal infrastructure and the community's welfare, it will strip away an element of "home rule" authority that is a historical keystone of government in Maine. Please vote NO on Question #1.
Bob Simpson
Town Manager