Maine municipalities regain 5% revenue slice

Photo / Pixabay For the first time since 2009, Maine cities and towns will get 5% of state revenues under a state-mandated sharing program.

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By Renee Cordes

For the first time since 2009, Maine cities and towns will receive 5% of the state's revenues, as originally mandated by state law, Gov. Janet Mills said Monday.

Statute had long required that the state share that portion of its revenues with municipalities, so Maine towns and cities are not solely reliant on property tax collections to fund local services.

But revenue sharing was reduced and held flat at 2% under the administration of former Gov. Paul R. LePage, who served from 2011 to 2019.

The portion has increased during Mills' time in office. The municipal share rose to 3% in fiscal year 2020, 3.75% in fiscal 2021, 4.5% in fiscal 2022, and now to the full 5% in fiscal year 2023.

“This is not only basic good governance, but it is an important source of funding for cities and towns that helps deliver all manner of municipal services, like EMS [emergency medical services] or education, and holds down property tax increases that can hurt older people on fixed incomes," Mills said.

"My administration will continue to work with the Legislature in a bipartisan manner to strengthen municipal services and deliver property tax relief to Maine people.”

The latest increase was welcomed by Catherine Conlow, executive director of Maine Municipal Association

“The restoration of funding for the Revenue Sharing Program to 5% of state sales and income tax revenue is step towards strengthening the state-municipal partnership," she said.

"These revenues reduce the burdens placed on property taxpayers, and recognize that municipal economic development efforts support the state’s economic vitality."

Mills, a Democrat inaugurated in January 2019, is running for reelection this November against LePage, a Republican who previously was term-limited.