When prosperity returns, fully fund government, return surplus revenues to taxpayers

By Jon Courtney, Special to the BDN

Recently, attention has been focused on Republican efforts to make state government more accountable, sustainable and affordable for taxpayers. The emphasis has been on making tough choices to ensure that our most vulnerable residents are protected and that the fiscal excesses and ongoing Medicaid shortfalls that we inherited are fixed so Maine can move forward.

Previous legislatures have continuously expanded state government beyond the means of beleaguered taxpayers to pay for it. The 125th Legislature has worked diligently to change the culture of state government to one that supports a job-friendly business environment that creates more taxpayers while taking less of their hard-earned money.

To create jobs and opportunity, we have enacted reforms in several key areas, including health insurance, regulatory fairness, workers compensation, educational, unemployment, Department of Health and Human Services, tax, pension and welfare reforms. We have acted to help restore confidence in taxpayer-funded organizations by exposing criminal behavior and questionable spending practices at the Maine Turnpike and Maine State Housing authorities respectively.

Given time, we believe these major reforms will benefit Maine for years to come. That is why we are also proposing forward-looking tax legislation for when Maine’s economy improves and budget surpluses return. LD 849, “An Act To Provide Tax Relief for Maine’s Citizens by Reducing Income Taxes” sets a goal of gradually reducing income taxes paid by Maine residents to a maximum of 4 percent over time. It is only triggered when state revenues grow to exceed the budgeted needs of state government.

LD 849 operates in concert with a spending cap that was signed into law in 2005 by then-Gov. John Baldacci. Extra revenues go into a fund that is used to gradually reduce the income tax rates over time until the maximum rate is 4 percent. When prosperous times return, it takes monies above the statutory spending limitation and returns them to taxpayers through gradual income tax rate reductions.

A similar version of our tax plan was enacted into law in 1995 when Republicans last held a majority in the Maine Senate, and was repealed by Democrats two years later. Earlier this year, former Governor Angus King was asked by Pat Callahan of WCSH6: “What if anything would you like to do over?” He responded by citing late Senate President Jeff Butland’s law to reduce the income tax rate over time with surplus revenues.

Unlike the previous plan, this legislation sets a statutory goal of 4 percent. Having a specific goal helps ensure that future legislatures remain committed to returning excess money to taxpayers rather than create new programs when good times return. It is responsible because it only occurs when there are surplus revenues above and beyond the needs of state government to fund existing commitments. It is a goal, not a limitation.

Current law allows government to grow at a determined rate of growth according to a statutory spending cap. So what is the real fear? Why have opponents of this tax legislation gone to extremes in trying to link it to TABOR and the state’s credit rating? That is because they are a vocal minority of government-dependent interest groups seeking an ever-increasing share and control of taxpayer dollars. Amidst their worn out claims of giving tax breaks to the rich, they fail to mention that Republicans have already removed 70,000 low-income taxpayers from having to pay any state income tax at all. These critics feel entitled to making unfettered decisions on how best to spend our money.

Republicans remain committed to struggling low- and middle-income taxpayers trying to make ends meet while working to improve opportunities for their children. Funding the budgeted needs of state government, then returning a modest amount of extra revenue to the people who earned it encourages more economic activity and more opportunities for all of us.

Sen. Jon Courtney is the Maine Senate majority leader. Courtney represents Senate District 3, which includes the York County communities of Alfred, Limington, Lyman, Sanford, Springvale and Waterboro.

Source

Courtney joins MPBN’s Keith Shortall on “Maine Calling”

April 18, 2012 — Senator Jon Courtney joined Maine Public Broadcasting Network’s Keith Shortall on “Maine Calling” to discuss Courtney’s candidacy for Maine 1st Congressional District.

Statement by Senate Majority Leader Jon Courtney on Maine Today Media Not Allowing Phil Curtis Op-Ed to Go to Print

For Immediate Release

Statement by Senate Majority Leader Jon Courtney on Maine Today Media Not Allowing Phil Curtis Op-Ed to Go to Print

“I was disappointed to hear that Maine Today Media has chosen to censor the Editorial of the Majority Leader of the Maine House of Representatives because they believed he was critical of the new owners.  This action is very inconsistent with the comments of the new management of the organization that proclaimed objectivity.

We are fortunate that in today’s world we have many other ways to communicate with the hardworking people that represent Main Street.”

Income tax cut plan is step to prosperous future

By Jon Courtney, Special to the BDN Posted March 25, 2012, at 2:06 p.m.

The single most important responsibility of the Maine Legislature is to enact policies that will help foster an economic environment that will encourage job creation and retention. That is why we have adopted significant health insurance, regulatory, tax, pension and welfare reforms. It is also why the Maine Senate passed legislation to use the growth in future revenues to reduce Maine’s income tax level from 7.95 percent to 4 percent.

Recent editorials have been quick to dismiss our plan and the taxpayer concerns that generated it.

LD 849, “An Act To Provide Tax Relief for Maine’s Citizens by Reducing Income Taxes,” was hardly rushed; it has been proposed by Republican legislators for years. It has had numerous public hearings and public debates extending back to when Republicans were the minority party. Its implementation is the logical outcome of the voters’ decision to change the direction of state government. Since we were given the opportunity to lead Maine in a new, more prosperous direction, it is reasonable to expect that we would follow through on our pledge to enact it.

We are committed to making state government more affordable. LD 849 sets a goal of gradually reducing income taxes paid by Maine citizens over time. It is only triggered when the economy improves, and there are extra revenues over and above the budgeted needs of state government.

Extra revenues go into a fund that is used to gradually reduce the highest income tax rates over time until the maximum rate is 4 percent. A similar version of our tax plan was enacted into law in 1995 when Republicans last held a majority in the Maine Senate, but was repealed by Democrats two years later.

Recently, former Gov. Angus King was asked by Pat Callahan of WCSH6: “What if anything would you like to do over?” He responded by citing late Senate President Jeff Butland’s law to reduce the income tax rate over time with surplus revenues. Gov. King said: “We were afraid to do it because we were afraid it would create deficits down the road. It turns out we had four to five years of surpluses and we could have done it.”

LD 849 operates with a spending cap that was signed into law by Gov. John Baldacci in 2005. It was done, in part, to address a $1 billion deficit that he inherited from Gov. King. When prosperous times return, LD 849 takes monies above the statutory spending limitation and returns them to taxpayers through gradual income tax rate reductions.

The major difference between LD 849 and the law we passed in 1995 is that it contains a target of 4 percent. That makes the bill harder to repeal. Opponents of this approach are concerned because it will limit their ability to take even more money from taxpayers to create new government programs.

Opponents of our plan attempt to link it to the unrelated Taxpayer Bill of Rights, or TABOR, proposals that sought to place limitations on the ability of the Legislature and municipal governments to increase taxes by requiring voter approval. LD 849 does no such thing. Rather, it sets a goal for state government, and only state government. Doing so will help us achieve an income tax rate that will support a more vibrant economy by encouraging people to reside in Maine year-round.

Voters gave Republicans the opportunity to lead Maine in the midst of the worst economy in generations. Year after year, state government has experienced annual shortfalls, and before Republican control, had been on course to create a society where more people receive from state government than contribute to it. We are keeping the promises that we made by implementing policies that have been part of our platform for years. LD 849 is one of them.

Finally, an editorial in another newspaper asserted that “cutting the top income-tax rate in half to 4 percent could be decades away.” For the sake of our children and grandchildren, let’s hope that is not the case. We are acting now to position Maine to be on the front end of the economic recovery when it comes. LD 849 is a responsible approach to creating future growth and opportunity for all Mainers.

Sen. Jon Courtney, R-Springvale, is the Senate Majority Leader. He represents Senate District 3 which includes parts of York County. He chairs the Joint Select Committee on Regulatory Fairness and Reform.

Source

Courtney Files Signatures for the U.S. House of Representatives

Senate Majority Leader Jon Courtney (right) presents his nomination petition papers to Maine Secretary of State Charles E. Summers, Jr.

Senate Majority Leader Jon Courtney (right) presents his nomination petition papers to Maine Secretary of State Charles E. Summers, Jr.

Augusta – Senate Majority Leader Jon Courtney of Springvale has filed 1,500 signatures to run for the first district of the United States House of Representatives.  Senator Courtney was able to gather the maximum amount of signatures in the matter of just 12 days with more coming in every day.

Courtney says he is very thankful to all of his volunteers, friends, and family for their hard work in helping collect signatures.

“When I decided to enter this race, I was optimistic in believing I would be able to collect the necessary signatures within the timeframe given, but I have been overwhelmed with the amount of support I have seen across the first district. I thank each and every volunteer for the many hours you gave to support me in collecting signatures,” said Courtney.

Senator Courtney along with his supporters collected the signatures through attending events and going door to door throughout the First Congressional District.

“I am very excited to have the opportunity to run for this Congressional seat and look forward to speaking with the constituents of the first district over the coming months.  It is clear that Washington is broken, and we need to stop sending the same people that created the problem back to fix it. I believe I have the leadership and common sense to represent the people of Maine,” concluded Courtney.

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Maine Is A Better Place Because We Kept Our Promises!

In 2009 Republican legislators stood on banks of the Kennebec River to pledge our commitment to leading Maine in a new more prosperous direction if given the chance to govern.  We promised to CREATE a state government that is:  Caring, Responsible, Efficient, Affordable, Transparent, and Effective. Last fall, we were given a historic opportunity to deliver on our promises when both the Maine House and Senate changed hands along with the governorship.

I am pleased with the results that we realized this past session, but first I want to give credit to my colleagues on both sides of the aisle. Working together in a bi-partisan fashion, we addressed Maine’s most pressing needs in these extremely difficult times.  We did so while avoiding a government shutdown and the polarizing situations that have occurred in states like Wisconsin.  Leadership made the decision early on in the session that we would insist on a 2/3rds budget and we would create a culture of inclusion, respect and consensus.  This decision has allowed us to put the state on the road to economic recovery as we are sending a message across the country that Maine is truly “Open for Business.”

In the end, members of the 125th Legislature worked together to enact several reforms:

REGULATORY REFORM – We took a first step in changing the culture at all levels of state government to one that makes good jobs and economic opportunity the mission of every department. It begins an ongoing process that will result in future job creation, job retention, and expanded opportunities for Maine people.

HEALTH INSURANCE REFORM – We passed landmark health insurance reform legislation that allows people to purchase insurance across state lines, increase competition, lower premiums and deductibles for everyone, and promote greater access to health care for the 133,000 Mainers who currently do not have health insurance.

MAINE TURNPIKE AUTHORITY— A bi-partisan review turned up questionable spending by senior officials and a lack of official oversight by the MTA board. A criminal investigation by the State Attorney General’s office is underway.  The legislature will insist on more transparency and accountability and exert more oversight over how our toll dollars are spent.

BUDGET -

  • Education- The biennial budget increases state funding to local school districts by $65 million.  In contrast to other states which drastically cut higher education funding, our budget made NO cuts to higher education.
  • Legislative Budget – To lead by example, Republicans cut the Legislature’s budget by $8.3 million.  This is the largest reduction from a previous year in the history of the Maine Legislature.
  • Pension Reform – We ensured the solvency of the state pension system for retirees by reducing the unfunded liability by $1.7 billion.  Changes will save Maine taxpayers $338 million in pension costs.
  • Tax Policy – We enacted the largest tax cut in Maine history. It provides tax relief to working families and eliminates 70,000 low-income filers from state income tax liability entirely. Our tax plan also promotes job creation and retention.
  • Welfare Reform – We made structural reforms and adopted initiatives that will help people escape welfare and ensure scarce resources assist our most vulnerable people.  Changes include: the establishment of a 5-year limit on TANF benefits (consistent with federal law); an end to MaineCare benefits for all legal non-citizens; imposition of strict sanctions for people who violate TANF rules; and required mandatory drug testing for convicted drug felons who receive TANF benefits.

Governor LePage also deserves credit for challenging the legislature.  Sometimes it takes an outsider to shake things up; look at the status quo in a different way; and then, provide an outline of needed changes.  While he is far from polished, the Governor will continue to “crunch” the Legislature to make tough decisions.  In response, we  will continue to be deliberative and work together to move Maine forward while protecting our most vulnerable neighbors.

When you consider these and the numerous other accomplishments the legislature achieved this session the results are nothing short of remarkable.  Back in December many doubted we could attain anything substantive with the challenges we faced.  The fact is, Republicans and Democrats couldn’t have done it alone, but together we were able to do it.  I believe when history looks back at our work this past session, our achievements will be remembered.  We kept our promises, made the tough decisions together, and took Maine in a different direction that will be more prosperous, affordable and responsive to ALL Maine citizens.

“Right-To-Work” Dead This Session

AUGUSTA – The Maine Senate today agreed to indefinitely postpone LD 788 “An Act To Prohibit Forced Payment of Labor Union Dues or Fees by Workers” – also known as the “Right to Work” bill. The Maine House of Representatives voted yesterday in favor of indefinitely postponing the “Right to Work” bill. That means the issue will not be considered by the Maine Legislature this year.

“The right to work is an important issue. It is an issue with which many Members of the Legislature agree,” said Senate Majority Leader Jonathan Courtney (R-Sanford). “The vote to postpone LD 788 is a simple matter of setting priorities.

“Our first priorities this year include regulatory reform, health insurance reform, energy cost reform, and passage of a biennial State Budget that puts Maine on the road to fiscal responsibility and private sector job creation. Republican initiatives continue to make major strides in restoring Maine’s economy,” said Senate Majority Leader Courtney.

Senator Jon Courtney Honors Claire and Gilles Auger on Franco-American Day in the State Capitol

Augusta – The Maine State Senate joined Governor LePage and the Maine House of Representatives in celebrating Maine’s Franco-American heritage on Wednesday, March 16, 2011.In a bilingual ceremony, the Senate opened the session with an invocation by Reverend Lionel Chouinard of the Holy Trinity Parish. The Franco-American War Veterans, Post 31, of Lewiston presented the colors as Rachel Boucher Ellis of Augusta sang the national anthems of the United States, Canada, and France.

The Senate passed a Joint Resolution declaring Franco-American Day at the capitol and honored six new inductees to the Franco-American Hall of Fame – Terry Ouellette of St. Agatha, Patrick Paradis of Augusta, and Claire and Gilles Auger of Sanford. Dr. Edward Martin of Rumford and Sister Solange Bernier of Lewiston were inducted posthumously.

In a noontime ceremony in the Hall of Flags, Senator Jon Courtney paid tribute to his constituents and friends Claire and Gilles Auger of Sanford.

“The Augers have spent a lifetime sharing their love and commitment to family, community, and heritage with everyone around them in Sanford and Springvale,” said Sen. Courtney.  “It really is an honor to stand here today and honor them and their induction into the Franco-American Hall of Fame.”

“It is also an honor for me to represent a community that the Augers have given so much of their lives to,” concluded Courtney.

Senator Jon Courtney Urges Committee to Secure Funds for the Southern Maine Veterans Memorial Cemetery

Augusta – Senator Jon Courtney testified before the Joint Standing Committee on Veterans and Legal Affairs today in an effort to secure funding for positions at the Southern Maine Veterans Memorial Cemetery in Springvale.If approved by the committee and passed by the legislature, LD 299, “An Act Regarding the Southern Maine Veterans Memorial Cemetery” will authorize $104,026 in the fiscal year 2011-2012 and $198,971 in fiscal year 2012-2013 from the General Fund to fund three new positions and to convert one seasonal position to fulltime.

Sen. Courtney said in his testimony, “this bill is a logical continuation of a ten year old dream to secure a final resting place for those who served and sacrificed to protect our freedom here at home and abroad.  Through the efforts of the Southern Maine Veterans’ Memorial Committee, the Town of Sanford, and countless others, the Southern Maine Veterans Memorial Cemetery was dedicated last August, and opened last fall.

“The Springvale location is important. One-third of Maine’s veterans reside in York and Cumberland Counties.  That translates into approximately 53,000 of our roughly 150,000 veterans.  The Bureau of Veterans’ Services tells me that each year, an average of 3,900 of our veterans pass away.  When fully completed, the cemetery will hold the final remains of 20,000 veterans and family members.

“This bill furthers the efforts of so many on behalf of our veterans and their families because it will remove one of the last barriers to interment of those who offered themselves in service to us and our great nation.  The issue now facing the Southern Maine Veteran’s Memorial Cemetery is not one of commitment, location, or space.  It is whether or not there is enough staff support to perform burials.”

Senator Jon Courtney Announces Passage of Supplemental Budget

Henrietta D. Goodall Hospital estimated to receive more than $5 million in state and federal funds

AUGUSTA, Maine – State Senator Jon Courtney (R-York) voted Tuesday, February 8, 2011 for a Supplemental State Budget which includes repaying an approximate $1.6 million debt Maine government owes Henrietta D. Goodall Hospital.

“Goodall Hospital is a vital part of the greater-Sanford community and Senate District 3,” said Senator Courtney. “We take for granted that our community medical center will always be there, ready to care for our families and loved ones any time of the day or night. But, when Maine government owes hospitals statewide around $400 million dating as far back as 2006, it puts an unacceptable burden on the hospitals and on those of us relying on them.”

“The Supplemental Budget, which I supported, and which the Governor signed yesterday into law, includes a $247.4 million repayment to Maine hospitals using State money and matching federal dollars,” continued Senator Courtney. “That includes approximately $5.8 million of state and federal funds for Goodall Hospital.”

The FY11 Supplemental Budget also:

  • Provides money to offset shortfalls in MaineCare, a health insurance program run by the Department of Health and Human Services. The shortfalls are attributed to higher MaineCare enrollment, and also, lapsing one-time federal Stimulus funding available to MaineCare;
  • Gives tax relief by having Maine conform to federal income tax changes; and
  • Adds an unanticipated $1.1 million to municipal revenue sharing.

The FY 2011 State Supplemental Budget concerns the current Maine State Budget. On Thursday, February 11, 2011, at 11:00 a.m., Maine’s Governor will provide a first glimpse of his proposed State Budget for the next two years during the Governor’s traditional Budget Address.

A summary of the Supplemental FY11 Budget is available for downloading here: http://www.maine.gov/legis/senate_gop/