Progress Report on the Action Plan for Promoting Sustainable Prosperity and Quality Places
Bangor Daily News op-ed column:
Legislature Initatiated Farsighted Measures, by GrowSmart Maine president Alan Caron.
In the few short months that make up the second half of the session, the Maine Legislature managed to take some big steps to implement key recommendations of 'Charting Maine's Future' while making some difficult decisions in order to close a $200 million budget gap.
As you know, the release of the Brookings/GrowSmart Maine report in late 2006 has generated a vigorous discussion about the future our state, and in many ways served to bring Maine people together to grapple with the creation of a common vision we can all embrace. The Governor and the Legislature have been steadily tackling issues that we brought forward in 'Charting Maine's Future' over the last two years. The report's major recommendations were:
- Invest in protecting and enhancing the unique character of Maine;
- Invest in innovation;
- Streamline and modernize government in order to make these investments;
- And reduce taxes on Maine people.
For each of these major recommendations, we've summarized actions taken in the first half of the legislative session followed by further action in 2008:
Invest in Maine's Quality of Place
We supported a series of bond initiatives in the first half of the session that constitute major investments in the special character of Maine, including land conservation through Land for Maine's Future, a new riverfront community development bond, and bonds for municipal infrastructure and working waterfront protection. Our long term goal remains permanent funding to protect and enhance Maine's quality places.
Our efforts to bolster the revitalization and redevelopment of Maine's towns & cities paid off with major victories in the second half of the session. Working with strong coalitions and legislative champions on both sides of the aisle, we were able to pass a bill to greatly expand the historic preservation tax credit (LD 262), a second bill that will establish a statewide, uniform building and energy code (LD 2257), and legislation that will provide more flexibility for historic school buildings in strict energy efficiency standards that previously applied equally to new construction and these historic structures (LD 2082).
These efforts will have an immediate and transformative effect on Maine's landscape. Looking forward, we will work to secure permanent, dedicated funding for quality places investments, and continue to advocate for resources that will help towns plan for growth and revitalize downtowns.
Invest in an Innovation Economy
In the first half of the session, we supported a major Research & Development Bond that was approved by the Legislature and the voters, totaling $55 Million over two years. In addition, a $4 Million 'Cluster Development Fund' was included in the budget. These funds are in the implementation phase and are being administered by the Maine Technology Institute.
This year, we supported the efforts of the Business Research and Economic Development Committee as they unanimously supported a bill (LD 2320) that was enacted by the House & Senate- the so-called 'Fund of Funds' bill. The legislation is designed to help attract venture capital funds, particularly national venture capital firms that might not otherwise invest in Maine companies and ideas. Unfortunately, the Governor declined to sign the bill into law after the Legislature finished its work for the session. Click here to learn more about LD 2320 .
In the next stage of implementing our "action plan for sustainable prosperity," we will work to secure permanent financing for research and development by streamlining and reforming state government and allocating a portion of the savings to these investments.
Streamline & Modernize Government
I. Streamlining K-12 Administration
Working from recommendations of 'Charting Maine's Future,' Governor Baldacci started out the first half of the 123rd Maine Legislature with a bang by proposing a major school administrative consolidation plan that was included in the biennial budget. The legislature passed the budget with a scaled back version of the consolidation plan that aimed to reduce over 200 districts to 80 districts. This session, following a citizen referendum repeal effort that failed to get enough signatures, a bill was developed to make minor changes to the law to remove barriers to implementation. The bill was used as a vehicle to water down the administrative consolidation plan as it passed in the House & Senate, and was subsequently vetoed by the Governor. A second bill to accomplish the original goal was ultimately passed in the final days of the session, so school administrative consolidation remains in effect and is in the implementation phase. See this SeaCoastOnline article for a description of the bill.
II. Streamlining State & County Jails
Consistent with another Brookings/GrowSmart proposal, an additional bill to consolidate the state & county corrections systems was passed by the Legislature this year. The compromise gained bi-partisan support and proposes to create a 9 member oversight board, which will aim to improve inmate services while increasing efficiency. Streamlining the corrections systems was a major recommendation of 'Charting Maine's Future,' and baseline research showed these costs as one of the fastest growing in the state. Click here to see the Sun Journal Article describing the bill.
III. Other Streamlining Efforts
GrowSmart Maine has advocated for an independent Government Efficiency Commission which would recommend a series of structural and administrative changes to make government at all levels more efficient over time - an effort, essentially, that would allow us to look beyond the biennial budget crises and reorganize. This idea led to the Appropriations Committee effort last summer to find $10 Million in savings which was booked in the budget as administrative streamlining. A proposed bill this year was not accepted by the Legislative Council. A similar recommendation by the Legislature's Prosperity Committee was tabled during the session, as the budget gap became the focus of attention.
Additionally, proposals to consolidate the natural resource agencies met with strong opposition and were not pursued.
Our next step in our action plan is to coordinate a comprehensive, independent analysis of state spending and government structure in order to secure larger savings in the long term.
Reduce Taxes
A revenue-neutral tax reform package proposed in the first half of the session was defeated by the Legislature- in part because the package was not supported by the Governor and was not linked to spending reductions or limits. Efforts to develop a comprehensive package in the second half of the session were underway, but did not materialize.
What actually happened in the budget?
After the dust settled, it was difficult to tell what cuts were made in the budget and what the impact will be. Here's a great summary of the major sticking points, cuts that were made, savings or revenues generated, and increases in fees, courtesy of the Lewiston Sun-Journal.
Following our action plan, we will work to secure tax reductions by locating savings and efficiencies through government streamlining.
Additional Highlights
The legislature also passed a measure this year (LD 2019) which will devote a percentage of sales tax revenue from car rentals to transit, aviation and rail transportation- and most notably to the continued funding of the Downeaster rail line and its expansion further north. Also in the transportation realm, an additional $160 Million in funding from increases in motor vehicle fees will be combined with existing funding to repair 264 bridges around the state, and an additional $50 million road-repair bond will go to voters in November.
Thank you for your support!
Since the release of 'Charting Maine's Future' in 2006, our efforts to implement its key recommendations have been supported by countless Maine people, our members, board members, coalition partners, and the Governor and 123rd Maine Legislature.
We continue to be inspired and energized by your support and leadership- with your help, we'll continue to fight for a better future for Maine.
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