Mayor's Budget Veto Threat Sets The Tone For How LePage Will Govern Maine

For Immediate Release: April 14, 2010
For More Information: Press Secretary Mike Hersey or Brent Littlefield at (207) 692-6865

WATERVILLE - As the only Republican candidate for Governor to have been elected and re-elected multiple times in a community with an overwhelming Democrat voter registration edge, Mayor Paul LePage is once again standing by his principles and proving why his governing philosophy works with the voters.

The Waterville City Council recently supported a budget that would increase taxes. Mayor Paul LePage's clear message in response: no new taxes in this tough economy. LePage's veto threat came in a letter he issued to the council.

LePage has a record of lowering taxes and at the same time improving the books for the city. During his tenure as Mayor of Waterville, he has helped cut property taxes without sacrificing any city services. The city's fund balance has increased from $1 million to $10 million and the credit rating has been upgraded from A-Minus to A-Plus.

LePage attributes his success as a chief executive of Waterville government to his personal life story where he was homeless at age 11 and learned to do more with less rising up to become the chief executive of Marden's stores where they build new stores only when there is money in the bank to pay for the next store. Under LePage Marden's has grown to employing more than 1,000 people.

LePage's budget veto threat was as follows:

2010-11 Budget Message
By Mayor Paul LePage

I have reviewed the 2010-11 budgets along with additional suggested cuts proposed by Mr. Roy and Mr. Boschen. The Administration faced a daunting task in preparing this year's budget. However, we need to recognize that all sectors of our society are facing extremely tough economic pressures. I commend them for the fine effort, and further acknowledge all our residents and taxpayers face similar unsympathetic economic times.

If ever there was a time to do more with less, this is the time. We must be responsive to the need for providing services to our community, while achieving a balance in thoughtful assessment of taxation to our taxpayers. The ability to pay tax increases has become as increasingly difficult, as making spending cuts has been to the Administration. However, if we are to recover from these difficult times, we must share the load.

As difficult and unpopular as it has been in the past, I recommend the city Park & Recreation programs be merged into the Alfond Youth Center programs. Cost savings realized at this level can be shared, by providing some additional funding to the Youth center. This would help solidify both the city and the Youth Center. If grants allow, I would support using grant funds to replace police cruisers. At least until the economy recovers to 2007 levels, I recommend we not fund the school resource officer.

Rather than having furlough days, I would reduce the labor force to 104 equivalent full time employees and curb overtime wherever possible. Reduce the contingency reserve to bare minimum and place a moratorium on all city wage increases. The cost of labor increases should come directly from other areas of labor to fund this liability. I would place a moratorium on all festival funding until the economy improves at least to 2007 state funding levels. Finally, I believe it is high time the city begins contracting out services to the private sector on at least a 60 - 40 split. This would lower the cost of overhead for the city and provide badly needed work to local contractors, while maintaining a self-sufficiency level.

My concern is if the city increases its taxes without making some of the sacrifices that everyone is asked to make, we will delay the recovery and cause further hardships to our taxpayers. I believe under current economic conditions both at the federal and state levels; we need to find more cuts in expenditures. Again, while I commend the Administration for preparing a rigid budget, I feel more cuts are needed to meet current fiscal conditions.

Therefore, I will not support a budget that calls for increasing taxes. Some will argue that we need to maintain services at current levels; however, I argue our mil rate continues to be too high and increasing taxes is indefensible for the city to realize growth and prosperity as the economy improves. We all need to sacrifice, the state has, our residents have, and the city must, in order to maintain the current trend of taxation. This problem is not going away; next year will be as difficult as this year. We must take action now, or see our tax rate return to days of yesteryear.

Paul LePage has a Personal Life Story Of Success; homeless at age 11, he put himself through high school, then college and went on to become a major Maine success story. He is a Leader In Maine Business; the only candidate for Governor to currently serve as the leader of a major Maine business, successfully creating jobs and growing Maine's economy as the chief executive of Marden's stores. He is the only candidate for Governor who has successfully served as the Chief Executive Of A Government; Paul LePage cut taxes, eliminated budget waste and red tape, improved services, and fixed the debt rating being elected and re-elected as a Republican in overwhelmingly Democrat Waterville due to his governing success.