MOVING TO AVERAGE

Maine combs its hair and shines its shoes before it visits bond-rating firms so its just-released Powerpoint presentation for Fitch Ratings agency is as positive as can be. But for those who have heard nothing but doom for a decade about Maine, there is also some real reason for cheer.

For instance, the presentation crows that Maine income now rank 28th in the nation, about as well as the state has ever done, moving from 89 percent of per-capita income in 1996 to 93 percent in 2003. What’s more, its income growth was ninth highest in 2003 and at the national average in 2004 – that’s not the honor roll, but it’s also not the D minuses of reports past.

Long term, the better news is that increases in General Fund spending have slowed and the state has begun to rebuild its rainy day account. At $33 million, it is paltry now but it is going in the right direction. At the same time, lawmakers for the last three years have been directing extra funds to pay down the unfunded liability on state retirement accounts, a burden that the state should continue to try to pay down as quickly as it can.

The presentation, by state Treasurer David Lemoine and Rebecca Wyke, commissioner of Administrative and Financial Services, also addresses the People’s Veto, an initiative that rejects a plan to borrow to balance the next budget. Democrats have warned the bond houses would smite Maine should such a Republican-inspired referendum pass; at the least, higher interest rates would befall the state. In the Powerpoint, they are considerably calmer: “If the voters approve the People’s Veto, then the budget will be unbalanced by $250 million. The budget must be balanced by year end (June 30, 2006).”

Seems more like bookkeeping when they put it that way.

Maine has had troubled economic times and, with the possibility of base closures or reductions, will have more difficulty. But it’s not all bad and not all state efforts have been futile. Some have moved Maine along fairly well, and are occasionally worth noticing.