AUGUSTA – Representatives of the Institute for a Strong Maine Economy unveiled a new “white paper” report Monday detailing the need to confront specific conditions to better shape the state’s economy in the decade ahead.

Paula Valente, president of the nonprofit, nonpartisan group, said the study provides important data that public policy leaders can rely on in devising economic strategies when a new governor and Legislature arrive at the State House next January.

“There is no more compelling issue in this election than the health of the Maine economy – all other issues derive from it,” she said.

The group did not offer specific recommendations. Instead it attempted to frame the economic debate in broad categories to encourage wide discussion that will, hopefully, attract new solutions to Maine’s economic woes. Among the findings in the report titled “No Place to Hide: Confronting Maine’s Economic Future” are recommendations to:

. Reduce Maine’s tax burden to the national average;

. Restructure Maine’s tax system to promote private investment, export activity, business competitiveness and the stability and predictability of tax revenues;

. Reduce the cost of government by restructuring regional and local government services;

. Limit the growth in governmental spending to the growth in gross state product, income or some other logical benchmark; and,

. Promote a culture of lifelong learning through a seamless educational system running from preschool to university to adult education.

Although many public policy groups such as the Maine Municipal Association, the Maine Chamber and Business Alliance, the Maine Development Foundation, and others have made similar recommendations in previous reports, Valente said her group was able to build on the earlier efforts with four separate research projects undertaken in the past year.

Key components of the report include a June 2001 poll undertaken by Brunswick pollster Christian Potholm and an overview on “Maine’s Investment Imperative” by state economist Laurie Lachance. The paper also features an analysis of economic development programs in the state by Jonathan Speros, senior manager with the global consulting firm of PricewaterhouseCoopers, and profiles of 10 Maine businesses that have made commitments to remain in the state.

Pointing out that Maine’s per capita income continues to trend far below the national average by as much as 15 percent and the New England average by 30 percent, Valente said those statistics were influenced by a lack of formal education throughout the Maine work force.

“Levels of education and income are closely linked,” she said. “The higher the level of education, the greater the income.”

Other discouraging factors in the state’s economic profile were gleaned from the latest U.S. Census data that Valente said ranked Maine second among all states for an overall tax burden. She also pointed out that the Washington-based nonprofit Corporation for Enterprise Development gave Maine an overall rank of “D” for economic development capacity. Meanwhile, she said the Milken Institute ranked Maine 43rd in its “preparedness to succeed in the new economy.”

“These rankings rate directly to our level of investment in research and development and post secondary educational attainment,” Valente said. “We’ve made significant strides in recent years, but Maine still lags significantly behind the nation as a whole in these areas.”

Other factors in the study detailed by Valente included a lack of investment in technology and the loss of its young workers who are searching for better opportunities in other states while those left behind continue to add to the pool of older workers.

“In the next 20 years, Maine’s population aged 65 and older will increase by 50 percent while those under 45 will decrease by 15 percent,” she said.

Valente also said that Maine’s distinction as the “whitest state in the nation” is discouraging to minority business owners who believe they will not be as readily accepted as Caucasians living in the state.

The report was widely praised by state leaders, including House Speaker Michael V. Saxl. The Portland Democrat and Bangor native is forming his own advisory council on tax reform in an effort to stimulate a dialogue that would provide specific remedies for tax reform.

“For too many years, we’ve talked about tax reform in Maine and for too few years we’ve actually pursued it in a way that was actually aggressive and thorough and comprehensive,” he said.

More information on the “No Place to Hide: Confronting Maine’s Economic Future” report can be found at www.ismec.org.