Revitalize Maine’s economy

When my grandfather left Italy in 1906 and came to America, he wisely settled in Maine. It was a land of tremendous natural beauty and boundless opportunity. When my father and his brothers went into business for themselves in 1948, that sense of opportunity was burning bright. The company they founded, Cianbro Corp., now employee-owned, has become one of the largest construction companies on the East Coast, employing thousands of Maine workers.

In 1983, when I graduated from the University of Maine, I went to work as operations director for Dragon Products, a large cement manufacturing company. But in 2000, when I left the state Legislature and began contemplating a run for governor, I began wondering about my own young children. Would they have the same chance to live and find fulfilling work in Maine? I didn’t think so, and I began my campaign determined to bring back the opportunity and optimism that, until recently, were hallmarks of our state.

We all know that our economy is in crisis. Many manufacturing plants have shut down. Large employers routinely lay off hundreds of workers. Our high tax burden smothers entrepreneurial drive and hampers our ability to retain and attract business. Our young people, the future of Maine, are leaving wholesale. And now we confront a massive budget deficit that stands at about $1 billion for the 2004-2005 budget cycle.

Obviously, the next governor is in for a tough time. But I am convinced that my ideas and plans for Maine are essential if we are to create good jobs, lighten our tax burden, make health care affordable, and preserve our quality of life. Without a strong economy, we will be hard pressed to afford excellent schools, a clean environment, a better transportation network, and the other things that make Maine special.

To start with, we must control state spending. We have no choice. I would cap any budget increase at 75 percent of Maine’s personal income growth. If the paychecks of Maine workers go up by four percent, the budget cannot go up any more than 3 percent. This will avoid drastic cuts in state programs and will allow them to grow at reasonable rates. If we’d had such a cost-containment cap in place since 1992, it would have saved taxpayers $2.4 billion. Our budget would be balanced, and taxes could be cut. We squandered that chance once and I won’t let it happen again.

As our revenues and budgets shift into balance, I will begin phasing in, over five years, a 20 percent reduction in the tax burden. Critics have said it can’t be done. I am sure it must be done. With the highest tax burden in the nation, I know we can afford tax relief. Without it, we won’t be able to make Maine more competitive and more attractive to business growth. We won’t be able to create the good jobs we so desperately need. It’s also clear that a tax cut, by stimulating economic activity, can actually increase state revenues. After President Reagan’s big tax cut in 1982, revenues to the federal treasury doubled by 1988.

In addition, I have proposed a freeze on property taxes for Maine residents 65 and older who make less than state’s average household income. I won’t stand by and watch senior citizens be taxed out of their homes. As our economic health returns, and the state can increase school funding, I hope to expand the property tax freeze statewide.

For hard-hit northern Maine I have proposed enterprise zones to jump-start an economic rebound. In partnership with the federal government, which will provide most of the funding, I also want to complete I-95 by extending the highway through Aroostook County to Canada and build an east-west highway that would cut across the middle of Maine and open up business opportunities throughout the region.

Maine’s 2nd Congressional District has lost 6,000 jobs in the last 18 months. How long can the region hemorrhage jobs at that rate and still remain viable? I won’t stand by as half of the state slides into despair. Rhetoric won’t solve these problems; action will.

Finally, I will tackle the crisis in health insurance affordability. Market forces must be allowed to work to increase the number of insurance carriers in the state. This will encourage more competition and bring forth a broader range of policies to fit individual circumstances. Our “one size fits all” insurance system has failed us. The market needs to be as vibrant and as flexible as possible so people can afford at least a basic health insurance policy.

There’s no time to lose. I ask for your vote on Nov. 5 so I can get to work.

Peter Cianchette is the Republican candidate for governor.