Morning Sentinel
Higher lodging tax gains favor
By COLIN HICKEY
Staff Writer
Kennebec Journal & Morning Sentinel Saturday, February 17, 2007

WATERVILLE -- Douglas Carnrick makes a living renting camps in the Belgrade Lakes region.

Given his profession, it might seem Carnrick would oppose a plan that calls for raising the state's lodging tax by 3 percent.

But that is not the case.

Carnrick is in favor of the move, one of the many recommendations that came out of a much-publicized recent Brookings Institution report on Maine's future.

Alan Caron, one of the driving forces behind that report, came to Thomas College on Friday to rally support for the principles and concrete moves recommended in the 144-page document.

The occasion was the latest presentation in the Business Breakfast Series, a joint venture of the Mid-Maine Chamber of Commerce and Thomas College.

Carnrick was among the three dozen in attendance.

"I think the report is dead-on correct with its assessment that the tax should be increased," he said of the lodging tax. "It will not affect the tourists coming in, and if the (tax money) is used to support the tourism industry, I think it will benefit everybody."

An increase in the lodging tax is aimed at establishing a $190 million fund to revitalize Maine communities and protect its land, waters and other natural resources, which the report stresses are among the state's greatest assets.

Caron, whose organization GrowSmart Maine raised the money -- about $1 million -- that made the report possible, summarized the key points of "Charting Maine's Future," as well as the central premise that Maine can enter an era of sustained prosperity if it makes the right choices.

In the Brookings Institution's estimation, the right choices involve not just safeguarding natural resources, but cutting taxes through streamlining government bureaucracy and public education administration.

The money saved could then be used to finance development of innovative jobs and industries.

Caron said a bill that contains the Brookings report's recommendations will go before the Legislature within the next two weeks.

"The report finds that this is an extraordinary time of economic opportunity for Maine," Caron said.

Carnrick and several other local people who attended the lecture generally shared that opinion, even if they had doubts about certain aspects or issues related to the report.

John Butera, executive director of the Central Maine Growth Council, a regional economic-development group, is a strong supporter.

"I'm really encouraged by the findings in the report," he said. "I really think it is a bold and much-needed initiative."

At the same time, he worries about sustaining the enthusiasm generated by the report's release last October, as well as the difficulty of finding the right balance between economic development and preserving what makes Maine a special place to live.

Tom Davis, owner of Are You Ready to Party, a Waterville party supply store, said the recommendations constitute a great plan -- in theory.

But Davis said he does not trust Caron.

Davis said Caron fought successfully against widening the Maine turnpike back in the 1990s, a move that Davis characterized as being against economic development. He said he finds it difficult to reconcile that stance with Caron's current crusade to help Maine grow. He also said the Brookings report seems to contradict itself at times.

How can it bemoan Maine's high tax burden, he asked, but recommend a hike in the lodging tax? "To me things just don't seem to add up," Davis said.

Still, Davis said he backs the report's central principles.

"I hope it ultimately brings change," he said, "because I think we've got to stop doing business as usual and accept that times have changed."

Caron stressed in his presentation that implementing the report's recommendations will depend on a grassroots effort. The people, he said, need to push the agenda. Oakland Town Manager Steve Dyer agrees.

"The concepts (of the report) are great," Dyer said. "I really think that the report can be used, if there is the political will in this state, to move us forward, and (Caron) is right: It will not start from the top; it will start from the bottom."

Dyer said referendums on property-tax relief launched in recent years suggest that Mainers are ready to take on that role.

The report, moreover, is geared to inspire such action, he said. "The Brookings Institution report is not just set up as another study to be done so it can sit on a shelf," he said. "This study was set up to motivate people to create a better Maine."

Winslow resident W. Elery Keene, the former executive director of Kennebec Valley Council of Governments, spent most of his professional life involved in public policy and community planning.

Keene, who is retired, said he has yet to read the Brookings report but supports its fundamental points, as well as its comprehensive assessment of Maine's strengths and weaknesses.

He worries, though, that people typically are more geared to short-term concerns than long-range visions. Caron, he said, is a dynamic advocate for the recommendations the Brookings Institution makes.

Yet Caron's task, he said, is a daunting one.

"How is he going to reach enough people (to make this happen)?" Keene said.

"It is hard to do these grassroots efforts when you have an issue that is so comprehensive."

Colin Hickey -- 861-9205

chickey@centralmaine.com


Reader comments

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paul of sangerville, ME
Feb 17, 2007 7:29 AM
People are fools to support anymore taxes in Maine. The governor put $250 million in the budget from school savings. It is not going to be anywhere near that. He also wants to raise the tax on tabacco. That is $132 million. There is great resistance to this in the legislature. This amounts to somewhere around $300 million to just balance the budget. If the lodging tax is raised people that think it will go to a fund to protect Maine's land and water will find out the only thing it will protect is the current budget. Just watch what happens. Maine needs tax relief and tax reduction not more taxes!report abuse
partytom62 of winslow, ME
Feb 17, 2007 10:18 AM
In theory it is a great plan but there is no need to increase taxes until the Legislature gets their house in order and manages what they have like DHHS which is wasting more then any tax increase would merit. THe Legislature should lead by example, cut the size of it then the school plan might follow if it sees that others are willing to cut greasing their own pockets like some do.report abuse
Sheila Evans of Chelsea, ME
Feb 17, 2007 10:27 AM
The Brookings Report is a great gameplan for Maine.

GrowSmartMaine fills the role of coach to help translate the gameplan for the population, which is of course, the team. Ask any good coach what they need to implement a gameplan: skill sets and talent, and believing. It is fair to say the talent and skills exist among the people, found in the Planning Boards and other branches of local government. They understand the need for an initiative that recognizes and embraces what is best about Maine because they struggle with issues that challenge Maine's assets every year.

The believing is the tough part. It takes time and trust, all on the local level. Trust grows as small and steady proofs of the validity of the Brookings Report recommendations are enacted and evidence from town to town.

Passing the increase in the lodging tax is a great start. Once the lodging tax revenues start showing up at the local level, serving as the missing link for saving beloved land and water assets which individual towns cannot accomplish on their own, people will be able to see and believe. The property tax relief from the suggested curtailments will also help sustain the believing and as each incremental step occurs, the gameplan shows itself to be the document that makes Maine the winner.


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Naran of Kennebunk, ME
Feb 17, 2007 10:29 AM

Mainers like Mr. Carnrick should have figured it out by now - when you give Government more money, all they do is find places to SPEND more money.

Just like the $70 million the state "borrowed" from the MDOT, and the annual money they take from the state Affordable Housing funds, this new tax revenue would not go where it's intended Nor will it benefit the taxpayers who innocently assume it will.

Gov. 38% will merely confiscate this new revenue in his endless attempts to appear to "balance" the budget. Never mind that Maine has a $6 billion dollar deficit, and any assertions that it's possible to "balance" that figure are pure codswallop.

Maine has a spending addiction, and feeding the Blaine House inmates even more of their drug of choice - tax dollars - will not help.

No new taxes - cut state spending, limit all new state employee raises, and require more health care contributions from all state employees, at every level.

Maybe then Maine will have enough money to fix our deteriorating roads and highways. We don't need fancy new rest areas for more tourists - we need to clean up the mess in Maine first.

Tell Maine State Government you've had enough - NO NEW TAXES!report abuse

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