Maine news, sports, weather | Kennebec Journal, Augusta, Maine

STATE HOUSE

Retirees turn up heat on LePage budget

By Susan M. Cover scover@mainetoday.com
State House Bureau

AUGUSTA -- Chanting and waiving signs that said "I am not LePage's piggy bank," retired state workers and teachers rallied at the State House on Wednesday to protest changes to their pension benefits proposed by Gov. Paul LePage.

click image to enlarge

Bunny Lambert, 89, stands in line with other retired state employees Wednesday during a rally outside the governor’s office in Augusta. The retirees were protesting changes proposed by the LePage administration to their retirement packages. Lambert, of Augusta, joined more than180 state workers at the rally.

Staff photo by Andy Molloy

Related headlines

• LePage, lawmakers find health compromise
• House approves package warning for cell phones

Select images available for purchase in the
Maine Today Photo Store

The workers turned up the heat on state lawmakers who are in the midst of negotiations on the $6.1 billion, two-year spending plan. The Appropriations Committee hopes to vote on an amended budget proposal by the end of the week.

Jackie Roach of Oakland, who retired in 1994 after 38 years as a teacher, urged the crowd to call lawmakers and tell them to reject the proposed budget changes.

"It's wrong for Gov. LePage to pay for his tax breaks for Maine's wealthiest residents by cutting the pensions of Maine's retired workers," she said.

LePage's budget proposes to freeze cost of living increases for retired teachers and state workers for three years and then reduce the cap on increases from 4 percent to 2 percent. Those changes would save the state $214 million, said Department of Administrative and Financial Services Commissioner Sawin Millett.

The governor is also proposing about $200 million in tax cuts, which will benefit about two-thirds of all taxpayers, according to the administration. The budget proposes to lower the top income tax rate from 8.5 percent to 7.95 percent and eliminate all state income taxes for a family of four earning up to $35,750, an increase from $21,400.

Millett said that in preparing the budget, the administration tried to balance the need to address short- and long-term debt in the retirement system -- there's an unfunded liability of $4.1 billion that must be paid by 2028 -- and the need to stimulate the economy.

"We tried to look at the impact on a variety of constituencies," he said. "By getting our debt under control and dealing with the retirement system growth curve, it will help retirees be secure in the knowledge that the system will be there for them."

The retirees who protested Wednesday said they don't feel they should be required to pay for tax cuts, particularly for wealthy taxpayers. Those who make more than $120,000 a year would save an average of $998, according to Maine Revenue Services.

Retired state worker Brenda Kaler of Augusta said her pension is $16,560 a year and as a state worker, she gets no Social Security benefit.

"So when you look at my pension, and look at Gov. LePage's tax giveaway, I can't help but get angry," she said.

Lawmakers have already begun discussions to alleviate the impacts of LePage's proposals on retired workers. His original budget called for retirees to pay a portion of their health insurance, either 5 percent, 10 percent or 15 percent based on the value of their retirement benefit.

Rep. John Martin, D-Eagle Lake, has offered an amendment, supported by other Democrats on the committee, that finds the funding necessary to cover the money saved by the initiative. It has yet to be voted on by the full committee, but has the support of the Maine State Employees Association and the Maine Education Association.

"You're talking about two groups of people who commitments have been made to over the years," Martin said. "It's simply not fair or equitable to turn our backs on an agreement that was made."

And while Wednesday's rally focused on changes to retiree benefits, LePage's budget also proposes to take an additional 2 percent of active state worker pay and reduce the state's cost. It proposes cuts to Medicaid benefits, health insurance and Maine Public Broadcasting to keep the budget in balance.

Wednesday's rally was a warm-up for a major union protest planned for today that is expected to draw several hundred people. Today's protest will focus on a bill that proposes to eliminate mandatory service fee payments by nonunion state workers who are represented by collective bargaining agreements.

The House on Wednesday killed a companion bill, L.D. 788, the so-called "right to work" bill that would have given public and private sector workers a choice on whether to join a union. It would have prohibited employers from deducting fees from nonunion employees.

As budget negotiations continue, lawmakers are working to find alternatives that will be acceptable to Democrats and Republicans alike. The budget will need support from two-thirds of lawmakers to pass the House and Senate, which means the final product must have bipartisan support.

"I don't think Democrats or Republicans on Appropriations collectively want to do the damage the governor's proposal makes to the system," Martin said.

Susan Cover -- 620-7015

scover@mainetoday.com