"IN THE NEWS"

How the Palesky Tax Cap might affect Greenville
Tuesday, September 07, 2004
GREENVILLE - After almost ten years, a small group of individuals interested in putting a cap on property tax in Maine have succeeded in collecting the required number of signatures from registered voters to have the petition placed on the referendum ballot for the November 2 general election. This effort was organized by Carol Palesky of Topsham and is known as the Palesky Tax Cap.

The implementation language in the petition has two significant parts. The first part calls for a roll-back of property values almost 10 years to their 1996 levels. This part of the bill, however, has been called unconstitutional by the Maine Supreme Court; proponents of the measure have agreed that this portion should be removed from the bill. The second part calls for a cap on property taxes not to exceed one percent of the total property value, or, a 10-mil cap on the tax rates, after municipalities have adjusted values to 100 percent. What would this mean to the town of Greenville?

This community, which is a geographocally isolated service center, would see a dramatic change and reduction in the public services it offers. Even though the town and the school would get to utilize any off-setting revenue, such as revenue sharing, general purpose aid for education, fees, etc. to fund their respective opeations, the town may be forced to implement additional or increased fees to restore portions of the budget what would be cut under the tax initiative.

Let’s start with how the school system would be affected. On the surface, it appears that the high school and middle school would close, and perhaps the elementary school as well. In terms of jobs, approximately 50 full-time and 20 part-time, or seasonal positions would be lost. Students would probably be bussed to either MSAD #4 in Guilford or further south to other school districts would be willing and able to accept the additional students. If the elementary school should remain open, grades K - 3 would be taught in Greenville, while higher grades would be bussed elsewhere. The now-empty buildings, Greenville High School and Nickerson Elementary School would most likely be kept in a “mothball” state - to keep the usable for other purposes. The estimate on that cost is around $97,180.74 and those funds would have to come from the town’s reserve account, or current fund balance.

What about the hospital? The only direct impact this tax cap would have on C.A. Dean Hospital would be the loss of the $12,500 contribution made annually to the ambulance service. The effect on the hospital’s survival would be indirect, due to loss of the school system and downsizing of other community services. Current professionals at the hospital would likely reconsider their choice to live in the area, especially if they had school-age children. Also, the out-migration of families would likely impact total hospital visits, resulting in a detrimental financial impact on the facility. C.A. Dean is the largest employer in Greenville, with approximately 150 full-time positions.

The Moosehead Lake Chamber of Commerce would lose its $10,000 annual contribution from the town, which would definately have a negative impact on its operation. Executive Director, Jonathan Pratt estimates that these actions would result in a loss of as much as 50 percent of the contacts the chamber regularly makes with actual as well as potential visitors to the region. Pratt estimates this loss of contacts at between 10,000 and 12,000 people a year.

What about the town government? The town office would most likely eliminate one day of work per week and all full-time employees would take a 20 percent cut in pay. There would be no funds for stipends, for travel expenses, training, internet service and website maintainence. Because of the cut in hours, it would be like the town lost one full-time position.

The fire department would also suffer - salaries would be cut, new equipement and equipment repairs would be rolled back and funding for the first responder service would be curtailed.

The police department would only cover approximately 72 hours a week - or the equivalent of six day shifts. Both full-time officers would be allowed to work only 32 hours a week. The department woulkd cease investigations, the DARE program, and most pro-active policing functions, like MANPAC and Citizen Appreciation Day. As a less-than-full-time department, the Greenville PD would no longer be eligible fro certain state and federal funds. Coverage of Beaver Cove for call-outs would most likely cease as well.

What about the Public Works Department? The appropriation for street lights would decrease by one third, darkening one third of the town now illuminated by street lights. All three public works employees would be reduced to 32 hours per week. The purchase amount of salt, sand and magnesium chloride would be diminished and the paving program would be cutrtailed. No gravelk road improvements with geotexile fabric would be possible; most street sweeping and clean-up would be curtailed as would the road ditching program. The road crew would become a general maintenance crew only. Essentially, the Greenville public works department would lose the equivalent of 1.5 full-time positions.

There would no longer any town contribution to the recreation program. Facilities such as the skating rink (the skateboard park in summer), tennis courts, basketball court and Red Cross Beacgh would be closed unless funding were secured to keep them operational, and with liability insurance intact.

All funds for the Greenville Cemetery would be curtailed and the cemetery corporation would be required to solicit funds for maintenance.

The Greenville airport project would not happen - there would be no arrivals building or redesign of the main runway. Maintenance of the airport would become essentially bare-bones as required by the Maine Department of Transportation (MDOT) and the FAA.

The Shaw Public Library would lose about $10,000 in funds, reducing number of hours of operation at the very least.

It is estimated that total job loss for town and schools would be about 45 people, with approximately 20 seasonal or part-time people as well Unfortunately, this tax cap as written would make Greenville a less desirable place to live. There would be a significant out-migration of families with school-aged children and likely closure of the hospital and other major employers. The entire Moosehead region would suffer a decline in commerce, in population, and in employment. Greenville Town Manager, John Simko said, that although he aggrees that the status quo on property taxes is necessary, the Palesky Tax Cap is not the way to do it. “We can and must do better,” said Simko.
"This content originally appeared as a copyrighted article in the Moosehead Messenger and is used here with permission."

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