Gov. Paul LePage will hold a town hall-style meeting in Westbrook on Wednesday to advocate for his $6.3 billion budget and related tax overhaul.
The hour-long presentation and question-and-answer session with the audience is scheduled for 6 p.m. at the Westbrook Performing Arts Center.
It is the first of at least two town hall meetings the LePage administration has planned on the topic. Adrienne Bennett, the governor’s spokeswoman, declined to reveal details about the format of the event or say how many others there will be. The next one, she said, would likely take place in the Bangor area.
The focus of the event will be the governor’s complex tax plan. It makes a variety of changes, although the centerpiece is an income tax cut that reduces the top rate from 7.95 percent to 5.75 percent. LePage has proposed paying for what is projected to be a $938 million cut over the next four years with a number of other changes, including increasing the sales tax rate to 6.5 percent. The current rate is 5.5 percent, but it was supposed to decrease to 5 percent at end of the fiscal year June 30. The Legislature initiated the temporary sales tax increase in 2013 to help balance the budget and pay for income tax cuts that the governor signed into law in 2011.
Additionally, the governor has proposed increasing the number of goods and services that are subject to the sales tax, such as amusements, ski lift tickets, and attorney and accountant services.
At the State House, debate has centered more on the governor’s plan to phase out $164 million in revenue sharing to cities and towns. Town officials say that will lead to property tax increases or cuts in services and education spending.
Westbrook Mayor Colleen Hilton said residents have approached her with questions about the budget and how it will affect them. Their biggest concern, she said, is higher property taxes. The city received approximately $1 million in revenue sharing this year.
“I don’t think we could take that kind of cut without some impact on property taxes,” Hilton said.
The LePage administration has sought to assuage concerns over property taxes by giving towns the authority to assess property taxes on nonprofits, such as hospitals, private colleges, summer camps and land trusts. Additionally, the governor has argued the income tax cut, as well as targeted property tax relief for people over age 65, would save people money.
LePage and Office of Policy and Management director Jonathan LaBonte will lead the Westbrook discussion. The public is welcome to attend and members of the audience will have an opportunity to ask questions directly of the governor.
The Westbrook Performing Arts Center is at 471 Stroudwater St.
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