Maine's municipalities have responded in several ways to cuts in state aid since 2008, a report said.
Since that year Maine government has cut annual state funding to municipalities by about $125 million.
In response the municipalities have cut services, raised taxes and fees, and increased their issuance of debt, according to a study by Emily Shaw, assistant professor at Thomas College in Waterville, Maine.
Despite a nationwide trend of declining property tax collections following the 2009 recession, Maine's municipalities increased their residential property tax collections by an average of 5% each year, Shaw wrote in the Bangor Daily News.
The municipalities also increased user fees.
From 2008 forward municipal governments also cut spending on general administration, employee benefits, public works and public safety.
In contrast, the municipalities have increased spending on K-12 education since 2007. By 2011 the state's largest towns were spending more than 33% more on this than they had in 2007.
"On average, Maine's municipalities have so far been unable to reduce their total spending in response to substantial reductions in state funding," Shaw wrote.
Municipalities have also apparently responded to Maine government's cutback of aid to its localities through the issuance of more debt.
"Even though state debt fell in 2010-2011, municipal debt continued to climb 6 percent over the previous year's amount," Shaw wrote.
