Maine voters repeal Dirigo taxes

AUGUSTA, Maine - Maine voters' verdict on a proposed casino in Oxford County remained unclear as ballots were counted early Wednesday, but their opposition to new taxes on beer, wine and soda was clear as they exercised their people's veto power by a large margin.

With 60 percent of the state's precincts reporting, 63 percent favored repeal. But the Oxford casino count was much closer, with 53 percent opposing the initiative.

Polls consistently pointed to passage of the tax repeal proposal, whose campaign was funded largely by the beverage industry under a "Fed Up With Taxes" banner. Outgunned opponents, including Gov. John Baldacci and the Maine Medical Association, sought to convince voters that the new revenues were needed to make affordable health insurance through the state's Dirigo program available to more Mainers who need it.

Gordon Smith of the Maine Medical Association, spokesman for those who sought to preserve the taxes, conceded that the other side presented a cogent message to voters.

"We feel very good about the campaign we ran," said Smith. "Forty percent is a moral victory for us given what we were up against."

Ted O'Meara, spokesman for Fed Up With Taxes, said his side never took a win for granted. "We worked very hard to get our message out, and we're very pleased with where we ended up tonight," said O'Meara. He said the campaign was never aimed at Dirigo, but sought to drive home the message that now is the wrong time to raise taxes.

The law that was struck down called for a little more than doubling the tax on beer and wine made by large producers. It also would impose new wholesale taxes on soda and syrup used to make it. It would replace the present payments made by insurers with a 1.8 percent surcharge on paid claims to fund Dirigo.

The referendum effort to allow a casino in Oxford County was launched in 2006 and OK'd for the ballot earlier this year. The campaign failed to gain momentum as its founder encountered legal problems and questions were raised about some of the law's provisions, such as one that would lower Maine's legal casino gambling age from 21 to 19.

But the campaign was reinvigorated when Las Vegas-based Olympia Group bought control of the venture from Evergreen Mountain Enterprises and started laying out details of the $184 million proposal. Olympia ratcheted up campaign spending and stressed the project's economic impact.

The project would include a 300-room hotel, a 30,000-square-foot conference center and 100,000 square feet of space to accommodate various table games and up to 1,500 slot machines. Olympia has promised to ask the Legislature to erase provisions in the law it acknowledged were flawed.

Vote tallies reflected strong support in towns like Oxford and Mexico, where residents saw the proposal as an opportunity for economic growth, but it was strongly opposed in Washington County, site of another casino proposal that was rejected at the polls last year.

Opponents, who have helped persuade Maine voters to reject two other big casino proposals, were joined by major ski resorts in saying a casino is counter to Maine's outdoorsy image. They also questioned whether the project would have the economic impact claimed by its backers, and said that while some of the money it generates will stay in the state, the rest will be pocketed by a national gambling company.

Maine has one casino, Hollywood Slots in Bangor, which is associated with a nearby harness racing track.

In the third referendum question, voters authorized $3.4 million bond issue for drinking water programs and construction of wastewater treatment facilities. The unofficial returns from 60 percent of the precincts showed 52 percent favoring passage.

Proceeds of the sale of $1.7 million in bonds would go into a revolving loan fund. Municipalities would be able to borrow money from the fund to build and upgrade sewage treatment facilities. These funds would be matched by about $8.5 million in federal funds.

The remaining $1.7 million would go into the state's safe drinking water revolving loan fund. Public water systems would apply for loans from the fund to design, build or improve drinking water supplies or treatment and distribution systems. The $1.7 million would also be matched by approximately $8.5 million in federal funds.

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