 Improvements with Governor
Baldacci
"More people are working than ever before" — 22,000
new jobs from 2003 to 2005.
"More of our children are going to college" — Community
College enrollment up 42 percent.
"More families are healthier and have health care" —
15,000 enrolled in Dirigo, 2,000 companies.
"More families are getting tax relief" —
225,000
people eligible for property tax relief.
A mark of a leader who has insight and the foresight to
help his people improve their lives and livelihoods is his ability to orchestrate programs
throughout the spectrum of issues that create an overall foundation that can be built upon
successfully.
In order to move Maine forward into a high-tech
international economy, more people needed to obtain higher degrees, research and
development projects needed continued funding, high-tech telecommunications infrastructure
had to become more available, incentives for businesses to create jobs had to happen, the
creative economy encouraged, and taxes had to decrease.
To responsibly accomplish these tasks the environment had
to be protected, new energy resources utilized, people’s rights, lives, and jobs
protected, and health care needed to become accessible for everyone.
Governor John Elias Baldacci saw clearly that all this had
to be done, as well as putting Maine’s fiscal house in order.
In his State of State ’06 he outlined some of these
accomplishments and how we need to continue to build upon these successes. The following
are highlights with the governor’s comments in quotes.
Incentives for job creation:
A Pine Tree Zone (PTZ) certification gives companies tax
incentives, enabling businesses to grow and economically challenged areas to become more
attractive for new businesses to set up there. Eligible businesses include firms engaged
in manufacturing, financial services, and Maine’s seven targeted technology sectors.
Seventy-six companies are now PTZ certified.
“My Pine Tree Zone economic program is creating more
than 3,000 jobs throughout the state. Tonight I ask for your support in expanding PTZ
eligibility in Washington County and designating PTZs in the mid-coast to redevelop
Brunswick Naval Air Station once it’s closed.”
“Over the past three years, over 1,400 new small
businesses were launched in Maine and small businesses created nearly 5,000 new
jobs.”
The Governor also announced plans for new tax incentives
for the film industry, as well as funds in the budget for the creative economy.
“While our economic plan is working, the
rising tide of our economy must reach every corner of the state. If we stay the course of
our plan with investments and hard work, we will grow 25,000 new jobs in Maine in the next
five years.”
Research & development:
According to a recent national economic study, Maine ranks
second in the nation for the number of businesses that grow out of university spending on
research and development.
The governor has continually secured R&D funding while
establishing coalitions between businesses, educational institutions, and the state,
helping R&D economic development. “As part of my economic plan, last fall I
presented the State Science and Technology Plan that calls for Maine’s annual
investment in research and development, including both private and public funding, to
reach $1 billion by 2010. My budget includes a down-payment — matching money for
marine research in the Gulf of Maine and for new businesses launched by the University of
Maine.”
Traditional industries aided:
A major reason some mills are operational today is because
Governor Baldacci refused to give up on them and their workers, and did everything within
his power to find other companies that would take over the mills and put in place either a
new business model or more profitable product line, making them competitive again.
In one case he refused to allow receivers into the mills,
sending state troopers to protect the mill from the receivers who would strip them of
their assets. Shortly after, a deal was brokered, keeping the mill operational.
“In Penobscot County more than 1,400 Mainers whose
jobs were threatened by bankruptcy are still working at paper mills ... And for the mill
that didn’t reopen in Brewer, this budget appropriates $500,000 to redevelop that
site to make it a job generator once again.”
High-tech telecommunications infrastructure:
“Last year I came to you with a bold proposal to
‘Connect Maine’ — to serve 100 percent of Maine communities with cell phone
coverage by 2008, and 90 percent of Maine homes and businesses with broadband by 2010.
“We’re ahead of schedule on both and will meet
the broadband goal later this year ... Later this month, I will submit Connect Maine
legislation to further expand the availability and quality of broadband and wireless phone
service throughout the state.”
Saving jobs & improving livelihoods:
In addition to saving 1,400 mill jobs, 200 tanning jobs,
and other jobs throughout the state, the governor led the fight to save jobs at our bases.
“Together we successfully took on the
Department of Defense when they tried to close our three military bases. We saved 4,800
jobs in Kittery and almost doubled the jobs in Limestone.”
The Kittery base is also adding new jobs and has worked
with the governor to establish coalitions that have encouraged the workers to become the
“gold standard” in workmanship for America.
The governor also proposed an increase in the minimum wage
this year.
Education:
Last year Maine increased state education spending by $250
million, ramping up the state’s share of education costs to 50 percent and helping to
decrease property taxes in some areas.
The governor’s Early College for ME program has
allowed high school students the opportunity of experiencing college-level courses,
encouraging them to further their educations. He proposes to expand the program.
The governor’s early childhood education programs
encourage learning at young ages, helping to fulfill his vision of a pre-K-16 educational
system.
The governor’s Community College System has given
opportunities to thousands of people to gain a degree and improve their potential
earnings, while training them for the challenges of our new economy.
“Three years ago we transformed higher
education in Maine by establishing the Maine Community College System. It has been a great
success. Enrollment has increased 42 percent.”
“To make college more affordable, I am also proposing
we expand the student loan deduction. It will open the doors of education wider than ever
before.”
“My budget provides $750,000 to educate more nurses at
both the University of Maine and the Community College System.”
Maine is one of two states in the nation that puts more
than 65 percent of their education budgets into instruction. Recognizing the hard work
teaches do, the governor’s budget proposes raising teacher starting salaries to
$30,000.
Environment & Energy:
“We have placed stringent standards on vehicle
emissions. We are in the forefront of state and regional efforts to reverse global warming
through reductions in greenhouse gas emissions. And we are taking toxic materials out of
our environment through the nation’s first program to recycle old computers and
televisions.”
In the three years, Maine completed land
conservation projects totaling more than 700,000 acres.
“More than 7 million acres, or 40 percent of our
working forest, is certified as sustainably managed ... and that’s good for the
environment and the economy.
“When I took office the subject of energy wasn’t
a hot button issue. Even so, I created the Office of Energy Independence and Security. I
knew that increasing our independence and efficiency, along with tapping into our
renewable energy resources would be good for Maine.
“Maine state government is leading by example. We
reduced travel, tripled the number of hybrid vehicles in the state fleet, and expanded the
state’s vanpool program. By instituting these measures early — before the
current energy price crisis — the state has been able to save 300,000 gallons of
fuel, and putting our electricity purchase out to bid will save us $4 million by June of
this year.
“Over the past three years I have advanced policies
and programs to make the entire state more energy independent: we now have a solar rebate
program, natural gas conservation program, a wind program in Mars Hill, and a tax
exemption for those producing biofuels in Maine.
“This year I will be introducing a comprehensive
energy bill to expand the use of renewable energy, stabilize electric costs, and adopt
statewide efficiency standards for appliances.”
Fiscal responsibility & taxes:
The governor kept to his promise of not raising broad-based
taxes despite being burdened with a $1.2 billion revenue shortfall, which represents 20
percent of the state budget, when he took office; the Rainy Day Fund was empty, now it has
over $100 million.
His determination to have the state become fiscally
responsible has led to a projected revenue surplus of over $150 million.
“We balanced the budget without raising a
broad-based sales or income tax, and we’ve continued to do this every year since ...
During my administration, we have cut the size of state government by more than 600
positions.”
The Maine state budget growth is the eighth lowest of all
fifty states, according to a survey by the National Governor’s Association.
“In fact, over the past four years state government
spending has grown at just over three percent. That’s the lowest increase in spending
in over 30 years.”
The low budget growth gives the state good standing when it
comes to securing loans for bond issues. Keeping taxes stable has helped stabilize state
government.
By not increasing broad-based taxes the tax burden has
decreased, because personal incomes have increased. Holding the line on taxes brings down
personal state income taxes.
Under legislation last year, called LD 1, property taxes
were decreased while education spending increased. With LD 1 the circuit-breaker program
is giving residents substantial rebates, reducing their property taxes. The state has
extended the circuit-breaker application deadline to the spring.
“Evidence shows that in many towns LD 1’s
increased education funding resulted in property tax relief ... In addition, we put
spending caps at the local, county and state level. LD 1 increased direct property tax
payments to Maine residents; 225,000 people are now eligible for direct property tax
rebates.”
The second half of the governor’s measure to reduce
property tax is to have properties assessed at current usage, meaning that if a family
home remains a family home it cannot be reassessed at a higher value simply because
property values in the neighborhood have increased.
“I don’t think anybody should be taxed out of
their home because someone paid an outrageous price for the house next door. That’s
why I’ve proposed a constitutional amendment that will put in place a fair and
workable way to value property and keep taxes low.”
The governor also proposed eliminating the personal
property tax on new business investments (BETER), a tax that is holding up growth in areas
of the state.
Health-care:
The governor’s first item on his agenda was to
complete a promise he made during the election campaign — to tackle Maine’s
health-care crisis. Working with all the players in the health-care sector, he came up
with a unique plan — a plan to make Maine the “Healthiest State.”
This plan is also making Maine’s business climate
healthy. All across America companies are relocating to Canada because health-care costs
in the U.S.A. are out of control.
“Dirigo is more than just an insurance
product; it’s about improving the quality of our health. It’s about reducing
health-care costs and making Maine the healthiest state in the nation.”
The governor aggressively led the fight for his Dirigo
Health program which was passed by the 121st Legislature.
• Dirigo Health reduces the
overall growth of health-care costs. $43.7 million was declared as savings from Dirigo
Health.
• Dirigo Health supports
programs that are geared to making Maine the Healthiest State. By ensuring people have
access to care and advice before they become ill, Maine is becoming healthier. Maine
recently became the number one state to reduce teenage smoking because of the state’s
preventive measures.
• Dirigo Health has gained
national attention, as many states are looking for solutions to the critical issue.
• Under Dirigo Health,
DirigoChoice was created — which is the state’s affordable insurance provider.
• With DirigoChoice, over
15,000 people are covered; 2,000 small businesses are satisfied knowing that they are
covered and that they have the ability to insure their employees.
• The Dirigo Health plan is
ever evolving and needs to be, because of the diversity of organizations involved.
• It is the first attempt in
the United States to tackle the health-care crisis in this way.
• It is unique in that it
requires the responsibility of all sectors of health care to work together.
• It is needed and, given the
opportunity, will make Maine the healthiest state.
“Dirigo is about innovation — doing whatever
needs to be done to expand coverage to more working families. We will build on our success
and take the next important step.
“We were successful a decade ago in creating a new
solution to deliver workers’ compensation — The Maine Employers Mutual Insurance
Company. Tonight I am starting the process to make sure Dirigo can expand affordable
coverage for more Maine citizens.”
|
