Baldacci touts economic achievements

BANGOR – Money is always important, but for politicians, it is especially so in an election year.

Now that Gov. John Baldacci finds his post coming up for re-election this fall, he is touting the economic accomplishments of what he hopes is his first four-year term in the Blaine House.

Repeating some of the same themes he has promoted with recent public comments, the governor on Wednesday morning told members of Bangor Region Chamber of Commerce how he has helped Mainers who are trying to make or save money, or both. The organization met at the Sea Dog restaurant and banquet facility for its annual meeting and breakfast.

Among the accomplishments cited by Baldacci were establishment of the Dirigo Health program and the Pine Tree Economic Development Zones, multiple foreign trade missions, and the streamlining of part of the state bureaucracy.

As for the state’s finances, Baldacci said they have improved since he took office in January 2003. Maine had no significant reserve funds three years ago, he said, but without increasing sales or income tax rates it now has $100 million in “rainy day” reserve accounts.

Because of this money, the state is setting aside $5 million to help compensate for a lack of an increase in federal heating fuel assistance funds, Baldacci said. State and elected federal officials have been critical of the lack of an increase in such federal funding, even though fuel costs are considerably higher than they were a year ago.

“We have the surpluses and reserves now that we can put [money] into these emergency services,” Baldacci said.

While he has been in office, 700 positions have been cut from state government, in part through the merger of the state departments of Human Services and Behavioral and Developmental Services, he said. Through that merger alone, services have been improved while 31 positions have been eliminated and $6 million saved.

Baldacci did not bring up the state’s Business Equipment Tax Refund program until he was asked about it, but stood behind the idea of eventually phasing out the program. Currently, the state pays out about $70 million a year to reimburse businesses for the municipal taxes they pay on certain types of equipment.

Business officials want the tax repealed but municipal interests are concerned it would shift a greater portion of the tax burden onto other taxpayers.

Without going into detail, Baldacci suggested that municipalities and businesses could work out their own arrangements over equipment taxes.

“We want [the tax revenue] to stay in the communities,” Baldacci said.

The governor also stood behind the Dirigo Health program, saying it makes health care affordable for individuals and small businesses. He said that Al Iuppa, the state’s insurance superintendent, has determined that the program has helped save $43.7 million in Maine.

“Good health makes good business,” he said. “Health care has got to be addressed on a national basis, and Maine is showing leadership in trying to address it.”

Paper mills that went bankrupt have reopened after being given Pine Tree Zone designation, which provide the mills with certain tax benefits, he said. He also supports the concept of “branding” Maine in order to add value to products that are made in the state.

“People recognize Maine workers as the gold standard,” he said. “The Maine name almost sells something by itself.”

As for what other issues he might tackle during a possible second term, Baldacci said he will go into that further when he gives the annual State of the State address later this month.

“It will be a lot more in detail on the 17th,” he said.

In other Chamber business, Tom Palmer became chairman of BRCC’s board and Dan Dauphinee was named the organization’s Volunteer of the Year for his work on the Chamber’s wellness committee. Outgoing board chairman Nelson Durgin was presented with a statuette of Paul Bunyan as gratitude for his service in the position.