Panel sketches outline for a prosperous Maine

AUGUSTA – Legislative leaders and rank-and-file negotiators hailed a bipartisan agreement by a special legislative panel Thursday that they said was designed to foster economic well-being for Maine in the years ahead.

Language detailing the elements of a package worked out by a unanimous Committee on Future Maine Prosperity might not be completed until next week, but the general thrust of a broad blueprint was touted by majority Democrats and minority Republicans as a demonstration that both sides agree on the need for administrative and fiscal reform and are willing to cooperate to achieve it.

A centerpiece of the Wednesday night accord would be, subject to approval by the full Legislature, the creation of an efficiency commission made up of public members from outside government who would develop savings recommendations worth $75 million.

The proposed savings package would be presented to the next Legislature in 2009 for an up-or-down vote, although revenue-neutral amendments would be permitted.

Advocates led by the panel’s House chairman, Democratic Rep. John Piotti of Unity, took pains to emphasize that $75 million in desired savings would be separate from the more immediate need to offset a $95 million General Fund revenue shortfall.

Democratic Senate President Beth Edmonds of Freeport, who just a day earlier warned that relying on spending cuts to cover the $95 million shortfall might not be possible, was noncommittal on the prospects for realizing $75 million in savings after that.

“I’m eager to see where this goes,” she said.

The 16-member Prosperity panel, composed of seven Democrats, seven Republicans, one independent and a tribal representative, met through the fall before its final session this week.

Its report envisions an efficiency commission made up of nine members, with four chosen by Democrats and four by Republicans, with a ninth member selected by the appointees to serve as chairman.

Sen. Jonathan Courtney, R-Sanford, said a key piece of the panel’s plan calls for surplus revenue to go to a Maine Tax Relief fund to be used to lower the state income tax. The target would be a maximum rate of 4.5 percent.

Maine’s individual income tax rates now are progressive from 2 percent to 8.5 percent.

House Minority Leader Josh Tardy, R-Newport, said the panel’s recommendations amounted to an institutional confession that existing state fiscal policies are not working.

“It’s a call to action that’s needed,” he said.

Piotti lauded House Speaker Glenn Cummings, D-Portland, as the foremost proponent of the prosperity panel.