EXCLUSIVE INTERVIEWS—

Governor J. Baldacci     The Governor talks candidly about the Trade Mission to Asia and how important trade missions are for business in the global economy.

Victoria Rowell        author/actress/activist talks about growing up on a Maine farm, her best selling book and how she wishes it to be ‘made in Maine.’

Congressman Michaud  The U.S. Representative talks in detail about how his Northern Commission will infuse the region with funds for economic growth

Speaker Cummings Maine’s House Speaker talks about the importance of consolidation, education and the challenges of the 123’rd legislative session

MAINE VOICES—

The State of the State Highlights of Governor Baldacci’s 2008 address

Working together           to help the state grow by Ramona du Houx

Economic fallout           because of Bush policies by Eric Mehnert

Mainers preserve ME They take our cultural heritage to heart by Ramona du Houx

MAINE INITIATIVES—

Quality Place Council Recommendations for action to preserve historic downtowns and natural places of beauty

Budget kept in balance Gov. takes action to protect state from possible recession with curtailment & suplemental budget proposal

Economic Council Bringing together business leaders for economic growth

MAINE AS 'ONE COMMUNITY' NEWS—

Alfond’s $500 gift         For every baby born in Maine to go to college

Protecting Mainers      From high oil and gas prices —UPDATE:    8.8 million emergency LIHEAP funds released for ME – Jan 16

LURC                        Maine’s Land Use and Regulatory Commission

BUSINESS NEWS—

Pine Tree Zones           Working for Maine’s workforce

Wind power                 Stetson MT. wind project approved with special TIF benifits

Alternative Manufacturing              High-tech global economy business in Winthrop

Kennebec Lumber Quality wood products co. sells products around the world

Trade Mission to Asia

BOOKS —

Above the Gravel Bar- Native Canoe Routes of Maine The author writes an essay about the wonders of the canoe

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Statistical information in this publication is obtained from state agencies and government offices.

All photographs, articles, and layout are by Ramona du Houx unless otherwise indicated.

Not authorized by any candidate, candidate’s committee, or the Maine Democratic Party

The revenue downturn is a serious challenge that we must address now. – Gov. Baldacci

Article & photo by Ramona du Houx

Last November, Maine’s Revenue Forecasting Committee announced a $95 million revenue shortfall for the two-year budget period.

Thirteen states face a combined budget shortfall of at least $23 billion for fiscal 2009, according to a recent report by the D.C.-based Center on Budget and Policy Priorities (CBPP). Maine’s deficit, 1.8 percent of the General Fund, is the lowest in the group. Rhode Island and California are facing 10 percent revenue shortfalls with the remaining states averaging around 6 percent. Eleven additional states are projecting deficit problems over the next two years.

According to CBPP, some of the fiscal problems facing states are due to economic conditions outside states’ control. For example, state sales tax revenue has declined because the bursting of the housing bubble has reduced sales of furniture, appliances, construction materials, etc. In many states, economic problems are magnified by past state decisions about taxes, including multi-year tax cuts, without accurately assessing their affordability or the failure to address structural weaknesses in their budgets.

"I think it’s important to note that Maine has avoided those kinds of structural weaknesses," stated Christopher St. John, executive director of the Maine Center for Economic Policy (MECEP). "Our deficit is primarily a result of a slowing national economy and not due to poor fiscal planning."

Governor John Baldacci issued an executive order directing State agencies to reduce the rate of spending in the current fiscal year by $38 million to address the problem.

"The revenue downturn is a serious challenge that we must begin to address now. People and businesses all around Maine are hurting. High heating oil prices and a struggling housing market are forcing people to make tough decisions. Families are struggling," said Baldacci. "They have to tighten their belts, and government must do the same. We can’t spend money that we don’t have. Until the supplemental budget is passed, the curtailment will ensure our spending doesn’t exceed our revenues."

The day after the governor’s State of the State address the Baldacci administration unveiled the supplemental budget and legislation that works in tandem for jail consolidation.

The supplemental budget mirrors many of the cuts implemented by the curtailment, including consolidation efforts in Health and Human Services, natural resources, and others. Joint purchasing for prescription drugs for pubic employers and joint purchasing for schools are also major initiatives within the proposal.

Maine invests more in Health and Human Services than most other states; as the Brookings report stated, this has taken funds away from other functions that could grow the economy.

The governor strongly believes in protecting Maine’s citizens.

"I understand that these decisions touch real lives," said the governor. "That is why I have vowed not to pull the safety net out from under our most vulnerable citizens. At the same time, we need to address this revenue downturn."

The supplemental budget closes the $95 million revenue shortfall and balances the budget for the remainder of the biennium.

"It does not draw down on the Budget Stabilization Fund, allowing us to use that, if necessary, in order to address any other issues that might pop up, given the outlook for recession seems to be increasing daily," said Becky Wyke, commissioner of the Department of Administrative and Financial Services.

The corrections unification legislation proposal eliminates the need for new construction of four facilities and combines administrative services. Under the plan, the State will assume operation of jail functions and establish regional facilities organized by the eight existing prosecutorial districts. In the first year the expected savings would be up to $7 million.

"Through controlling spending and reducing administration, we will balance this budget and make the critical investments needed to grow our economy now and into the future," said the governor.