WASHINGTON – As the poorest state in New England – and the state in the region with the highest percentage of elderly residents – Maine could be hit hard economically if the current Social Security program were changed, experts say.

Maine’s seniors rely more heavily on their monthly Social Security benefits than all but three other states in the nation, according to a study by the Economic Policy Institute and the Economic Analysis and Research Network. The study also shows that the median elderly household in the state relies on that monthly check for 74 percent of its income.

The statistics illustrate how much Mainers in particular would be affected if Congress approves President Bush’s plans to create individual investment accounts for Social Security beneficiaries.

“I do believe there is a trickle-down effect that could happen to Maine and to Mainers,” said Phyllis Cohn, communications director for AARP Maine, the organization that represents people aged 50 and older. “If less people are getting Social Security to meet their needs, then they ultimately might end up relying on the state to fill in the gaps for them.”

Cohn said this could cause an increase in the need for such programs as MaineCare and Meals on Wheels.

In addition, the approximately $1.6 billion that Mainers receive in Social Security benefits per year would decrease, meaning residents would have less money to spend at local businesses, Cohn said.

“If people have less money to spend, then businesses suffer,” she said.

And given demographic projections for the state, the elderly population in only going to increase, said Christopher St. John, executive director of the Maine Center for Economic Policy.

While IRAs, 401(k)s and other retirement investment plans are more lucrative sources of retirement income, “Social Security is the base upon which people’s retirement depends,” St. John said. “We’re very nervous about a structure that leaves more Maine seniors exposed to the dangers of poverty.”

Maine’s seniors also have fewer assets, fewer sources of income and less investment experience than people in most other states, St. John said.

“Social Security should continue to be the base on which everyone can rely,” St. John said, calling the stock market “more like a lottery than a guaranteed return.”

Maine’s members of Congress spent most of their two-week Easter recess last month in the state, hearing constituents’ concerns about proposed changes to Social Security.

Republican Sens. Susan Collins and Olympia Snowe both met with AARP Maine for “brainstorming sessions” to find ways to ensure the future of Social Security, Cohn said, adding that the group also has been involved in town hall meetings with Democratic Reps. Michael Michaud and Tom Allen.

But in addition to meeting with AARP, Collins met with businesspeople who are in favor of Bush’s proposal for private investment accounts.

Collins said she hopes Congress can eventually “craft a bipartisan modernization bill,” but she wants Congress to “take a year to educate the public, to get educated ourselves and to elicit as many ideas as possible for how to strengthen and save Social Security.”

Ensuring the solvency of the program is not Collins’ only concern. The number one issue she has heard about from constituents over the past few years involves inequities in the current law that reduce benefits for teachers, firefighters and public employees, she said.

According to Preston Hartman, Sen. Snowe’s press secretary, she believes “it is far more important to get it right than to rush precipitously to action” when dealing with Social Security.

Allen and Michaud oppose personal investment accounts but support finding ways to strengthen the system.

“While it is true that the Social Security system needs some improvements to ensure its continued success. I believe that this Congress’ energies would be best spent on how to improve the system, not making matters worse by insisting on private account schemes,” Michaud said in a statement.

Michaud also reintroduced on Feb. 17 his proposed constitutional amendment to ban the use of personal accounts.

Allen said implementing individual accounts would add up to $5 trillion to the government deficit in 20 years, while not doing anything to ensure the future of the program.

“The president has to pull his support for private accounts off the table so we can negotiate the same issue,” Allen said.