For years, critics of the state’s economic-development programs have complained about a lack of standards – public money goes out with no measurement of the public benefit that may, or may not, come back in. That criticism finally seems to have had an impact.

Unfortunately, not upon the $50-plus million that goes out to businesses through the state’s two largest tax-break programs each year. Even the handful of businesses – largely enormous out-of-state corporations

– that receive millions and still lay off hundreds of workers remain safe from scrutiny.

Not so, however, for poor, small towns within the state. Let them fail to deliver the expected benefits of state economic aid – or just appear to have failed – and the state’s hammer comes down swift and hard.

Consider the case of Machias, shiretown of Washington County, one of the state’s poorest. In 1998, the town obtained from the Maine Department of Economic and Community Development a grant of $400,000 to construct a telebusiness center. A requirement of the grant was that it create 45 jobs, 51 percent of which were to go to people of low and moderate incomes.

The building is up and fully occupied, but not quite to DECD’s expectations. As a result, DECD wants a refund. From the shiretown of one of Maine’s poorest counties.

Certainly, agencies that award grants have an obligation to see that it is used appropriately. The problem here is not that Machias misused the money – it did build a building and fill it with jobs – but that it did not fully document the number of jobs created and the income status of the job holders (although the fact that the preponderance of jobs created in Washington County go to people of low and moderate incomes should be obvious to anyone with even a passing interest in economic development).

In some states, the agency charged with assisting communities prosper might view this as an opportunity to be of assistance –

it might contact the town, inform it of the problem and offer to help correct it. But this is Maine, so the DECD merely writes Machias and demands the money back. At least DECD says it wrote the town, on June 8, with letters to both the town manger and the board of selectmen. Neither letter was received.

The mystery of the missing letters could have been solved quickly and easily by a follow-up phone call, had it occurred to someone at DECD that problems with a grant deemed severe enough to result in forfeiture perhaps were deserving of the personal touch. The need for further information on the number and types of jobs created, retained or consolidated could have been expressed. The offer to help pull together the necessary documentation could have been made. The current situation of having the shiretown of one of Maine’s poorest counties in shock could have been avoided.