Michaud’s bill aims to bolster Maine economy

WASHINGTON – U.S. Rep. Michael Michaud is trying to get millions of dollars for economic development in Maine with his bill to create a Northeast Regional Economic Development Commission.

“The Northeast Regional Economic Development Commission will invest in economically distressed communities,” Michaud said in a statement this week. “It will create and implement regional economic development plans to reduce poverty, address changing land use and improve the quality of life for residents.”

During an interview later, he explained that a similar commission has existed since 1965 in Appalachia, an area that stretches over 13 states, where it has helped cut poverty in the region in half since it was established. The Appalachian Regional Commission has created 26,000 jobs and cut the number of economically distressed counties in the region from 219 to 100.

Over the past decade, Congress has established three other commissions and proposed two more.

“When I came to Congress and saw other regions coming together to address their economic development in a way that was modeled after the successful ARC [Appalachian Regional Commission],” Michaud said, “I thought that it was something that Maine should have and that our region could share.”

On average, the commissions funnel about $40 million a year into the areas for economic development purposes, he said.

While the dimensions of the development region are not yet completely defined, Michaud envisions it encompassing the northeastern border region, which extends from Maine through New Hampshire, Vermont and into upstate New York. While this region is rich in natural resources, it lags behind other parts of the country in economic development, he pointed out.

Losses in manufacturing jobs and people leaving the area have drained the area’s economy. Federal assistance in the form of grants would greatly help the region while preserving existing industries, according to Michaud.

Using the county-based funding formula in place for existing commissions, Michaud estimates Maine would receive up to 40 percent of the federal money allotted to a Northeast Regional Economic Development Commission.

Every county in Michaud’s 2nd District would benefit and maybe one or more in the 1st District, according to an analysis by his office.

The commission would be made up of a federal commissioner appointed by the president and the governors of all the states that decide to participate. The federal commissioner and a majority of the governors would need to agree on specific grants before the money could be disbursed.

Michaud also stressed that the commission would work with and not replace existing federal, state and local economic development programs.

U.S. Rep. Tom Allen of the 1st District, who is a co-sponsor of the legislation, said the bill would help to foster economic development by bringing state and federal government together with business and nonprofit groups.

“I am proud to be working with Mike Michaud in support of his bill to create a Northeast Regional Economic Development Commission,” Allen said in a statement. “We need to do everything we can to bring more focus, more resources and more attention to the need for economic development in Maine and throughout northern New England.”

U.S. Sens. Olympia Snowe and Susan Collins plan to introduce similar legislation in the Senate and are working on its wording and getting more support for the bill, according to press people in each office.

“Communities in the Northern Forest Region share common transportation, environmental and economic development challenges,” Snowe said in a statement. “The bill I plan to introduce will recognize these unique needs and set up a commission that can work across borders to overcome problems that we all face. By combining our efforts and formulating a common strategy, we can more efficiently leverage existing resources to get the job done.”

Collins agreed, saying in a statement, “Regional commissions such as this are proven to create opportunities for self-sustaining economic development and improved quality of life in distressed areas.”