Legislative panel wants jobs, accountability in King’s bond package

AUGUSTA – “Show me the jobs” was the refrain Thursday as members of the Legislature’s Business and Economic Development Committee discussed Gov. Angus King’s $31 million economic bond proposal and the need for additional development programs.

“We need to see if we can set some priorities as a committee,” said Rep. John Richardson, D-Brunswick, co-chairman of the panel.

“If we can’t get an agreement here, it’s just a waste of time to try and get something through the whole Legislature.”

Several committee members want the panel to consider seeking part of the $6 million the state will receive from the capital gains tax on the sale of the water rights held by Great Northern Paper to fund additional economic development programs.

“An argument can certainly be made that this should be used for economic development,” said Sen. Lynn Bromley, D-South Portland. “There are a lot of programs we wanted last year, but we did not have the funds.”

The committee is looking at a list of eight programs in the Department of Economic and Community Development that could benefit from additional funds. They range from regional grant and assistance programs to additional cash for the Maine Film Office.

“These are programs that work and we know they work,” Richardson said. “But the demand is far beyond what is available.”

For example, the Maine Micro Enterprise Initiative created two years ago is aimed at businesses with less than 10 workers. While the program got $850,000 in one-time money, DECD received 16 proposals with requests for funding of more than $2 million.

A majority of the panel supported the concept of putting a bond package before voters to help finance business expansion and create new jobs, but not without conditions designed to make sure the bonds result in more Mainers working.

“We need accountability,” said Sen. Edward Youngblood, R-Brewer. “We need to be sure these programs create jobs.”

Several panel members questioned the size of King’s total bond package, $118 million, and predicted it would need to be reduced in size before it would get the two-thirds vote of both branches of the Legislature needed for approval.

“It’s not going to pass at this level,” said Rep. Thomas Murphy, R-Kennebunk.

He argued the committee should make sure the economic development part of the package is prudent, but enough to provide the help needed by businesses. He suggested the priorities set by the governor are not those of the Legislature.

“I would like to see more money go to the existing programs that have a track record,” he said.

Part of the governor’s plan would provide $10 million to re-capitalize the Economic Recovery Loan program and the Regional Economic Development Revolving Loan Fund administered by the Finance Authority of Maine. Lawmakers believe both programs have been successful, and may deserve more funding than the new Maine Rural Development Authority King has proposed. That program would total $15 million.

Two other borrowing proposals in King’s plan – $4 million for a program that provides grants and loans to municipalities for infrastructure needs and $2.1 million for the Schoodic Education and Research Center – were barely discussed by the committee Thursday.

Panel members seemed unified in the need to improve accountability for programs funded with bond money. A research and development bond approved by voters a few years ago required a report aimed at measuring the success, or failure, of the program.

“I think we should look at some similar language on these bonds,” said Sen. Kevin Shorey, R-Calais, co-chairman of the committee. “We need accountability, we need to see if these programs are creating the jobs supporters say they are.”

But the panel will not be unanimous on the bond proposals. Rep. Brian Duprey, R-Hampden, said he would not support any bond for anything this year.

“The future of Maine’s economy is at stake,” he said. “Our budget is too big and we are spending too much.”

Shorey challenged Duprey to be constructive and propose a way to fund needed economic development programs. Duprey said he would cut the state budget in half, and then there would be enough funds for new programs that might be needed.

Shorey said that was unrealistic and said he would support some level of bonding because it is needed to improve Maine’s economy.

“I will not abandon the people of Maine to blindly follow an ideology,” Shorey said.

A public hearing on all of the bond proposals has been scheduled for March 4 at 1 p.m. in Room 228 of the State House.