Economics & Demographics Program

LD 1 PROGRESS REPORT – 2009

In January 2005, Governor John E. Baldacci signed into law LD 1: An Act to Increase the State Share of Education Costs, Reduce Property Taxes and Reduce Government Spending at All Levels. LD 1’s goal is to lower Maine’s state and local tax burden ranking to the middle one-third of states by 2015.

Each year, the State Planning Office reports on the progress made by Maine’s state, county, and municipal governments, and its school administrative units, in reducing Maine’s tax burden.

For the fifth year in a row the growth rate of property taxes was lower than before LD 1 went into effect. However, 87 percent of school administrative units exceeded their spending targets. Collectively, their spending was 11 percent above targeted levels, more than double the margin in 2005-06. Since 2005, the 29 percent increase in the State’s share of school funding has not been met by a commensurate reduction in local spending.

State Planning Director Martha Freeman pointed to this year’s report as further evidence of the need for efficient government at all levels. ”Larger towns and conforming school districts have an easier time staying within LD 1 limits because they have the scale to operate efficiently. Particularly in a recession, it’s important that we continue to find ways to consolidate and coordinate the way governments provide services,” Freeman said.

Martha Freeman, Director, State Planning Office
Michael LeVert, State Economist

LD1 Progress Report 2009

LD1 Progress Report 2008

Summary (PDF)
Full Report (PDF)
Updated Tax Burden Analysis for the LD1 Report (PDF)

LD1 Progress Report 2007

Summary (PDF)
Full Report (PDF)
Maine Revenue Services Estimated Change in Tax Burden (PDF)

LD1 Progress Report - 2006

Summary (PDF)
Full Report (PDF)
Maine Revenue Services Estimated Property Tax Impact of LD 1 (PDF)

LD1 Progress Report - 2005

Summary (PDF)
Full Report (PDF)