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The 121st Legislature began full of promises and pledges to fix the state’s budget crisis without increasing taxes, do something significant to make health care available and affordable to all Mainers, invest in our workers and our economy, and hold a tight leash on government spending.
To be honest, I was not sure we would be able to do all that. But the citizens of Maine demanded it, and insisted that we not let partisan politics of the past stand in the way of this ambitious agenda. By upholding our commitment to work with the governor and with Republicans we succeeded.
Here is some of what we accomplished:
Balanced budget. Starting the session with a $1.2 billion deficit, we managed to leverage federal matching dollars, apportion money more efficiently, and make judicious cuts to programs to balance the budget. It was not easy, and it was not without pain. Thankfully, through skillful negotiating and a spirit of cooperation, we were able to restore funding in the Part II budget to several key programs, such as mental health for children.
We were able to do all of this with no new taxes and no broad-based tax increases. Gov. Baldacci made the no-new-taxes pledge, and Democrats successfully unified the Legislature to sustain that promise. It is important to remember that well over half our state tax revenues go back to municipalities – in fact, almost 80 percent of it goes back in the form of general purpose aid to education, transportation projects, Medicaid, property tax relief, revenue sharing and more. Still, the current economic climate made it clear we could not and should not ask citizens to give more.
Budget stabilization fund. Democrats and Republicans agreed on the importance of a budget stabilization fund that will help slow the pace of future state spending. The fund limits increases in state spending, and ensures that in times of excess revenues, the money goes to pay off certain debts and to a “rainy day fund” rather than into new programs that might not be sustainable during economic downturns.
We also worked hard to find funding for the Office of Program Evaluation and Government Accountability. This office was the joint brainchild of Democratic and Republican legislators but until now there was no money to fund it. This legislative session we found $300,000 a year for the next two years to fund this office, which we expect will more than pay for itself in the savings it finds.
Dirigo Health. The economic sustainability of our state depends on the physical health of all our citizens. That means we must rein in out-of-control health care costs, make health insurance available and affordable to all Mainers, and assure the continued quality of health care. It is a tricky system to manage – one in which every change affects another part of the system.
I am especially proud of our passage of Dirigo Health. The goal of Dirigo is to spend our health care dollars wisely and efficiently, hold down the spiraling costs of care, and ensure that care is available to everyone. The initial and important step of passing Dirigo Health gives us enormous opportunity to do that.
Economic development. Given the status of our economic health it was necessary to take quick action on economic development. That is why Gov. Baldacci called a special election in June at which voters overwhelmingly approved a $60 million bond package, which I was proud to sponsor, crafted by the Legislature to invest in research and development, higher education research, and affordable housing.
Environmental legislation. Legislation passed this session will reduce liquidation harvesting, ban the sale of arsenic-treated lumber by next year, reduce the disposal of mercury into landfills and into the waste stream, study greenhouse emissions, and require the state Department of Environmental Protection to come up with a plan for reducing carbon dioxide emissions. The Natural Resources Council of Maine gave this Legislature high marks for its work on the environment. And most of these initiatives require very little taxpayer money.
There is still more work to do. Despite our best effort, we were not able to complete two important items before the close of session: tax reform, and a second package of bonds to invest in our transportation infrastructure, higher education, and environmental initiatives. Leadership in the House and Senate are now working to convene the Legislature again in the coming weeks to complete our work on those two issues. Tax reform, in particular, is one of the key issues voters have told us we must address this term, and we will not allow the year to pass without taking bold steps on that issue.
Given our successes thus far, and the Democrats’ commitment to collaboration at the State House, I am confident that we will meet with success in these remaining areas, too. I thank my Democratic caucus members for joining in that spirit of compromise, and I thank my Republican colleagues, led by Republican Leader Joe Bruno, for working with us to put the people of Maine first.
John Richardson, D-Brunswick, is the House Majority Leader.
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