Maine Nonprofits: Gov's Plan to Impose Taxes Will Lead to Job Losses

Maine Nonprofits: Gov's Plan to Impose Taxes Will Lead to Job Losses

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"There's a ripple effect out of non-profit employment and that's the challenge with this particular proposal," says Scott Schnapp, executive director of the Maine Association of Nonprofits.

Schnapp is preparing for some lengthy public hearings before the Legislature's Appropriations and Taxation committees, where the fate of the governor's budget will ultimately be determined. Schnapp says most non-profits would have to look toward laying off employees to offset significant unexpected new expenses.

"So when you add expenses you're going to have to cut expenses somewhere to be able to balance budgets," he says, "and the cuts are going to have to come on the employment side."

Not only would the policy result in job losses, some critics say the intended policy would never come close to making up the difference to municipalities for $60 million  in lost revenue sharing funds. 

Source Name: 
MPBN

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