R&D & CONSISTENCY

With so many public bond requests in Maine and so much legitimate need, Gov. John Baldacci’s proposal for spending on research and development is not as large as it might otherwise have been, but his proposed $125 million over three years is welcome for several reasons.

Maine has seen the results from spending on R&D – expanded industries, more jobs, a huge amount of funding from outside Maine, new opportunities for college graduates leading to spinoffs and future technologies that will help carry the economy here. But despite these advances and annual state funding of about $20 million a year, lawmakers haven’t come close to what most states spend to support these industries.

The state ranks well below average for per capita public debt and public debt as a percentage of personal income. The governor’s bond package, however, reflects an attempt to catch up on some neglected areas, such as transportation and land conservation. Both have been neglected recently because legislators haven’t cooperated long enough to produce the two-thirds’ vote needed to send a bond request to voters.

The best way to do this is to forgo some of the business tax breaks Maine hands out now but requires only minimal or no evidence of public benefit and redirect the money to cover more of this proven investment. Augusta isn’t ready for anything so sensible, but the next best choice is a substantial bond that delivers consistent dollars over multiple years and is awarded based on a competitive process.

This is similar to what the governor’s Council on Jobs, Innovation and the Economy recommended last week – $150 million over three years, applicants vetted through an independent third-party review, an emphasis on collaboration and lots of assessment for job growth. Earlier, the council had recommended the state spend $10 million a year on cluster development, in which targeted industries, such as composite technology, boat builders and marine trades, are supported so that they grow large enough to attract further development.

Maine’s inconsistent growth in research and development has limited its opportunities and limited its tax base. Like many programs here that begin as good ideas, R&D hasn’t received the commitment it deserves. Maine, with its limited resources, can choose among several ways to strengthen its economy, offer better jobs and lower its tax burden, but whatever it chooses (and R&D is an excellent choice) the state should stick with it long enough to give it a chance.

This bond proposal is the beginning of such a commitment. Legislators should support it, and they should study the competitive process used to distribute the funds – it might be a model for other business subsidies.