If Maine were to fund Medicaid expansion using income and sales tax revenue in the General Fund, MaineCare’s share of the General Fund would grow to 25 percent—or one-in-every-four tax dollars that Mainers send to Augusta. This is unsustainable.

Medicaid expansion and other new, non-revenue generating programs should be funded in a sustainable manner.  Maine government needs to live within its means. Income taxes and sales taxes should not be raised to generate revenue when Maine has been running a surplus.

We support reducing the size of state government while increasing its efficiency of operations. Reforming the formula for the calculation of the 55-percent state share of education costs and reforming revenue sharing would help reduce the structural gap while allowing municipalities greater certainty in planning budgets. 

We recognize that no matter how much money the state gives towns and cities, there is no guarantee that the municipal governments will lower property taxes.