Dems, GOP clash over state economy figures

AUGUSTA – A running verbal feud between Republican and Democratic leaders at the State House attempted to inject some vitality Thursday into an otherwise lackluster post-primary campaign season in Maine.

The latest development in the who-said-what about the state’s economy took another turn Thursday when House Speaker John Richardson targeted GOP Senate leaders Paul Davis of Sangerville, Carol Weston of Montville, and House Republican leader Joshua Tardy of Newport for criticizing Democrat Gov. John Baldacci’s announcement of a large year-end surplus Monday.

“It can be very destructive to talk about all that is wrong with Maine without recognizing in part that there are very good things going on in Maine and that a surplus of $149 million, as was reported and as was criticized by Republicans, I think is something to celebrate,” said Richardson, a Brunswick Democrat. “It does show that, in fact, we’re making improvement and projections of income tax and corporate income are higher than the Revenue Forecasting Committee first thought.”

According to an Associated Press report earlier this week, Baldacci pegged the 2006 General Fund revenue surplus at about $74 million and said another $14 million in savings had been realized. In an accompanying press release, he offered a flattering context.

“I came into office in a challenging financial situation, with paper mills closing and our reserves depleted to zero” the Baldacci statement said. “I promised then not to raise income and sales taxes to put Maine on sound financial footing and while it was difficult, I kept my promise. In addition, we created spending caps and reduced the state’s overall tax burden.”

Republicans took a dimmer view of the development, with Tardy saying it’s “not hard to save money when you don’t pay your bills” in a reference to the GOP estimate of $5 billion in outstanding state debt.

“We currently owe Maine hospitals more than $300 million, and that debt is growing by $70 million a year,” he said.

Davis assailed Baldacci’s decision to refinance the state retirement system that saved $177 million but carried a future cost of $2.5 billion in additional interest.

Weston told Capitol News Service that the surplus tax revenues should send a message to someone in the governor’s office that Maine taxes are too high and that a reduction of tax rates was in order.

Maine GOP gubernatorial nominee Chandler Woodcock, of Farmington, dispatched a vaguer reaction Monday saying the “current administration needs to candidly address the difficult challenges facing Maine” and that “health care is too expensive, taxes are too high and government spending is out of control.”

In a confusing and embarrassing turn of events, Richardson called State House reporters to his office Wednesday afternoon to berate Woodcock for the statements that were actually made by Tardy, Davis and Weston.

Upon being informed of the misattribution, Richardson apologized, but nonetheless continued to insist Republicans were wrong about state finances and the economy.

It all seemed very strange to Davis, who said Thursday that Richardson could obviously use “a little more R&R this summer.”

“It is unfortunate to see the speaker of the Maine House of Representatives resorting to inaccurate accusations of a candidate for office that he himself is not even campaigning for, let alone slinging personal attacks against the character of an honorable man like Chandler Woodcock,” Davis said. “I would hope we hear an apology from the speaker. I would also hope that he apologizes to the right person.”