Democrats draft plan to restore state aid to towns

7:42 AM, Jan 7, 2014   |    comments
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AUGUSTA, Maine (AP) - The Democratic co-chairs of Maine's budget-writing committee are backing a bill to prevent reductions in state aid to towns and cities.

Democratic Rep. Peggy Rotundo of Lewiston and Sen. Dawn Hill of York say their measure would restore $40 million in revenue sharing. They say more than $29 million would provide tax relief for homeowners while the rest would benefit commercial property owners.

Cities and towns face to lose $40 million in state aid if lawmakers don't come up with savings in the state budget by reducing or eliminating tax breaks.

Maine's municipalities have already faced significant cuts. They typically received 5 percent of all state sales and income tax revenue, or about $145 million. But about $73 million was cut this fiscal year and about $83 million the next.

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