Fed failure hurts Maine

Over the last four years, legislative Democrats have pointed to the consistent failure of the federal government to fulfill its funding promises to the state of Maine. Most other states – including those with both Republican and Democratic majorities in the Legislature – have voiced the same complaint.

While some of Maine’s legislative Republicans have dismissed this as frivolous, Maine’s Republican senators in Congress – Sens. Olympia Snowe and Susan Collins – have deplored the cuts in federal funds to Maine. Sen. Collins referred to the president’s cuts to Medicare and Medicaid, education, and law enforcement/emergency responders in her Feb. 6 press release as “disappointing,” “discouraging,” “troubling,” and said “these recipients should not be the victims of efforts to reign in spending and decrease the [national] deficit.”

In regard to these same issues, Sen. Snowe declared in a Feb. 7 press release that she is “disappointed” with the president’s budget, particularly with respect to health care cuts that “dramatically affect people’s access to care.” Sen. Snowe went on to say, “these cuts will disproportionately hurt rural states like Maine.” In addition, the senator expressed significant disappointment with the budget cuts to children’s programs, especially education and health care programs.

According to the February 2006 publication, “Federal Funds Information for States,” published by a national non-partisan organization, Maine ranks 35th lowest in the nation with respect to the amount of federal funds this state receives.

These are not ancillary funds for “nice-to-have” programs. Of the $1.98 billion of federal funds that Maine is expected to receive this fiscal year, almost all of it – 98.5 percent – is earmarked for education, healthcare/social services, and transportation programs.

These are the highest priorities for Maine citizens, and account for 85 percent of Maine’s spending in the general fund budget and most of the state’s highway spending.

It is important to note that the amount of federal funds available to Maine have been reduced by $100 million over a two-year period in FY 2005 and FY 2006 compared to federal funding in FY 2004. In addition, the inflation rate for the FY 2004 – 2006 period is projected to be 9.7 percent, which makes the reductions in these funds far worse.

In a very few areas, there are increases. While additional federal funds are always helpful, they should not be confused with eliminating the problems created by reduced federal funds elsewhere.

For example, the federal government will spend $2 million in Maine next fiscal year to purchase a piece of land in Grafton Notch through the Forest Legacy Fund of the USDA. While this is welcome news for Maine, that funding does nothing to help with Medicaid, prescription drugs for the elderly, transportation projects, and so on.

All projects that Maine taxpayers will have to foot the increased bill on as the feds continue to reduce funding.

With or without adequate support from Washington, legislative Democrats will address Maine peoples’ highest priorities – jobs, access to health care, and responsible fiscal policies.

We have sponsored and passed legislation to create more jobs, expand access to health care through Dirigo Health, invest in a more highly skilled workforce, and to place spending limits on all levels of government.

We also developed the “Small Business Initiative” to foster the growth and expansion of small businesses in Maine by streamlining regulations, providing funding for new technology and for research and development, and expanding outreach services to small business.

And we continue to fight for jobs bonds that invest in Maine’s people, innovation, and small businesses.

Significant cuts to Medicaid, Foster Care, the State Children’s Health Insurance Program, substance abuse and treatment, community development block grant programs, and vocational education severely hurt children in Maine at the same time that the Bush Administration gives tax cuts to the rich.

It is ironic that the Maine constitution requires a balanced budget every year, while Washington has just approved a $781 billion increase in the federal government’s debt limit to $9 trillion, the fourth such increase since President George W. Bush took office.

The fact is the federal budget is being balanced at the expense of the states, with particularly detrimental effects on rural states like Maine. Unfortunately, identifying the problem won’t force the federal government to start paying its bills.

But pretending it is not happening will not help us make a more honest assessment of the challenges facing us a state.

And it won’t help us to meet those challenges, which Maine does by writing and passing a balanced budget every single year – something that has not happened in Washington since there was a Democrat in the White House.

Rep. John Richardson is speaker of the Maine House of Representatives and represents House District 63, part of Brunswick.