Libraries Oppose Proposed Tax Cap

By James Straub

ELLSWORTH -- Libraries statewide are adding their voices to the chorus opposing a proposed tax cap that will go before voters in November.

The referendum question asks: “Do you want to limit property taxes to one percent of the assessed value of the property?”

Known as the Palesky plan, the tax cap referendum is a citizen’s initiative that received widespread support from Mainers demanding tax reform and relief from escalating property taxes.

Opponents of the plan have warned voters about reduction or elimination of essential municipal services should the measure become law.

Libraries are among the services likely to be hit hard by the tax cap.

In a resolution adopted by the Maine Library Association in May, the association affirmed the importance of “meaningful property tax reform,” then went on to decry the Palesky proposal.

The resolution says the tax cap “would have numerous unintended consequences, including the devastation and even elimination of many publicly funded local Maine libraries. The Maine Library Association vigorously opposes its passage.”

Rich Boulet, director of the Blue Hill Library, said most Hancock County libraries would not be directly hurt by the tax cap because they are largely supported by private funding.

The Ellsworth Public Library, which is a city department, would be an exception, and those libraries that escape direct damage would suffer from lateral effects of the tax cap.

Ellsworth Finance Director Michelle Beal said the city has not specifically addressed issues regarding the proposed tax cap and its effect on the library.

Should the tax cap be enacted, Ellsworth would lose a great deal of tax revenue, which would affect all municipal services.

In 2003, Ellsworth raised $9,497,000 in local taxes. Under the Palesky plan, the city could have raised no more than $4,654,520, a 51-percent cut.

“Obviously when cuts come, it’s nonessentials that get cut first,” Beal said. “There’s a pecking order.”

The Ellsworth Library is currently operating with a $504,000 budget.

Funding includes $460,000 in tax revenue from Ellsworth, $30,000 from area towns that contribute to the library and $15,000 in miscellaneous revenue.

The library could lose much or all of its funding from the city and likely would lose its contributions from area towns as they struggle with their own revenue reductions.

Ellsworth Library Director Pat Foster said she has heard no specifics from the city regarding its stand on the proposed tax cap.

“Libraries across the state are going to be hurt,” she said. “We probably won’t be exempt.”

Foster said a librarian visiting from California this summer urged voters to defeat the tax cap measure, which is similar to legislation passed in California some 10 years ago.

“She said 71 branch libraries closed in California and some have not re-opened yet,” Foster said.

In Blue Hill, the library trustees have not announced a position on the tax cap proposal.

Boulet has been working on his own, rather than in his professional capacity, to help defeat the proposal.

“A 30-percent projected loss in municipal funding is expected statewide,” he said. “With public libraries often occupying a low place on the funding priorities list, facilities in locations such as Belfast, Augusta, Oakland, Topsham and Gardiner have all gone on record as potentially facing closure, or at least drastic reductions in service.”

In Topsham, Palesky’s hometown, library Director Linda Prybylo said the tax cap would devastate the library.

Though the Topsham Library is not a town department, the town funds 100 percent of its operation budget.

Topsham voters recently approved a $1.5-million bond to build the library’s first permanent home, a 13,000-square-foot facility.

“The town will have no money for the library or to keep the new building operational,” Prybylo said. “Yet it will have to find a way to pay off the $1.5-million bond for a building it won’t be able to use.”

Librarians statewide tell similar tales.

Lithgow Library in Augusta is 97 percent municipally funded, said Director Elizabeth Pohl.

“Based on post-Palesky projections done by our city manager, our 108-year-old library would close. Period,” said Pohl.

The age or stature of library buildings would not spare them.

“If the Palesky tax cap should pass, the Calais Free Library, which opened its doors on July 4, 1892, will be closed,” said Marilyn Sotirelis, librarian.

Debra Lozito, director of the Edythe Dyer Community Library in Hampden, said the town manager said the library would operate entirely on fees generated should the Palesky initiative pass.

“Essentially we don’t generate enough fees or fines to keep the building operating, much less buy new materials or pay any staff,” Lozito said.

Though many jobs would be cut, Boulet said he is more concerned about the impact the tax cap would have on library users.

Services would decline in libraries not directly affected by the tax cap because much of the statewide cooperative infrastructure would fall apart.

For instance, as large libraries close or drastically scale back service, the state’s inter-library loan program would suffer, affecting many smaller libraries.

“Without staff on the other end, there’s not much use in making the request,” Boulet said of the inter-library loan program.

Libraries statewide use a book delivery service to reduce mailing costs. If too few libraries participate because of cuts resulting from a tax cap, the service likely would end.

Online catalogues, circulation services, shared software and other services provided by the Maine State Library also would be in jeopardy because of the ripple effect of local budget cuts.

“Voters need to know what they’re going to vote on and how it affects their daily life,” Boulet said.