December 24, 2024
Column

Economic growth vs. tax growth

Maine, especially the 2nd Congressional District, must refocus its priorities and initiatives. The growth of the population and economy must advance in Maine.

Maine is at a crossroad. We are faced with at least three serious economic distress indicators: higher than U.S. average unemployment, lower than U.S. average per capita income and out migration. All counties in Maine have at least one economic distress factor, most have two factors and parts of the 2nd District have all three. In addition to these troubling indicators, Maine is number one in consumer taxation when local and state tax burdens are combined.

Our economy, our education and health care services, along with other social services and the very fabric of Maine are threatened. We have out spent our capacity to generate sufficient revenue to feed our insatiable appetite without breaking our citizens’ backs. This downward spiral must be revered in order to grow the economy.

With the state of the state in such economic distress, it would only seem sensible that the Legislature would have been reconvened to work closely with the governor and his executive staff to stop the financial bleeding in Maine. Businesses experiencing such financial strains would have acted quickly to reduce operating deficits. Are we hampered because of the political season, or are we unsure of the necessary action? It clearly is better to act than not act.

A recent vote taken by the Legislative Council, made up of the leaders of both caucuses, to raise the legislative budget by 14 percent bears some scrutiny. How can the legislative leaders vote a $5.8 million spending increase over the next two years when we are forcing state employees to take days off without pay? Party line divided the vote with the Democrats voting yea and the Republicans voting nay. Although all members of the Legislative Council did not support this action, enough did for an affirmative vote. It appear some legislators must be unaware of the seriousness of our state’s financial picture. Spending needs to get in line and the Legislative Council should be the first to recognize the seriousness of making difficult decisions.

We, the elected representatives, have a clear responsibility to the citizens we serve. It is time for decisive and definitive action. Programs, initiatives and policies must be put in place immediately.

Let me suggest a sampling of

such actions necessary to stimulate our state:

. No new taxes.

. No unfunded mandates that negatively impact individuals, communities or businesses.

. Audit all state programs and departments for mission effectiveness and financial responsibility on a statutory timeline.

. Lobby the federal government to provide the revenues for the mandated federal education laws. This would provide the needed income for our education system and reduce taxes.

. Restrict state government spending to a specific percentage of Maine citizens (the consumer) real economic growth of their personal income.

. Enact programs that provide equal opportunity for all regions of the state.

. Develop an achievable economic development and health care plan.

. Take advantage of federal revenue programs.

. Combine, coordinate and reduce duplication in our education and health care services.

Maine, supported by our federal delegation, should be developing economic opportunities with our New England partners and Atlantic Canada. Although Maine has the longest contiguous border with another nation (Canada), we have not availed ourselves of federal and treaty dollars to enhance our economy. A billion and a half dollars of trade occur daily with the United States and Canada.

Although not always a destination, Maine is central to the trade corridor between Canada, New England and the mid-Atlantic states. So Maine needs to be working diligently to receive federal dollars under the new Federal Transportation Bill, which will be enacted in 2003. Inter-modal infrastructure review should be undertaken to determine how

to effectively inter-connect our road, rail, air and seaport assets. Federal financial assistance should be requested immediately to begin

such a study.

Lastly, the business environment must be attractive in the areas of taxes, incentives, workers’ compensation and other factors that encourage business that have closed in the past two years. Excellent-paying jobs have been lost.

Without a strong business base there won’t be jobs to produce an increase in state revenues, provide the future for our children, maintain or enhance our social services, encourage retirement in Maine and make this the state we all know and love. As a state representative, I am committed to continuing the focus of improving the economy, maintaining strong education resources and reducing the economic burden on our citizens which will improve all other aspects of our lives.

State Rep. Mary Ellen Ledwin, of Holden, is a Republican representing District 116.


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