AUGUSTA – A state panel is recommending Maine annually invest 1 percent of all General Fund spending in research and development efforts, increasing that to 3 percent over several years. Currently, each percent would raise an estimated $30 million a year.

In addition the panel is recommending the Legislature ask voters to approve a $250 million bond issue to be invested over five years in R&D.

“We, in this committee, are convinced that we have got to talk about growing the economy,” said Sen. Lynn Bromley, D-South Portland, co-chair of the Select Committee on Research, Economic Development and the Innovation Economy. “People need tax relief, but they need that relief by having higher per-capita incomes.”

The bipartisan panel agreed the state needs to significantly increase its investment in research and development and that a combination of state appropriations and borrowing through bonding is needed to achieve that goal. Rep. Emily Cain, D-Orono, the panel’s co-chair, said there is a clear track record of investments in research and development paying dividends to the state.

“We have seen a financial return, of dollars, come into the state through matching funds and generated business and economic activity that has been an immediate return to the economy,” she said. “We have seen jobs created here in our state.”

At an October meeting, the panel heard from researchers based at the University of North Carolina, who estimated Maine was getting $6 to $7 back for every $1 the state has invested in research and development. Members of the panel are convinced further investments will result in significant new jobs and economic activity in the state.

The proposal, which will be considered by the new Legislature in January, would increase the state’s cash commitment over a period of years to 3 percent of state spending. Based on current spending levels, that would be $30 million in the first year and more than $100 million a year when fully implemented.

“We are proposing a process that will make these grants on the basis of where they can do the most good,” Bromley said. “That’s what we want this new board to do, to determine where the state should invest this money.”

The bonding proposal would ask voters to approve $250 million in borrowing, with no more than $50 million to be issued in bonds each of five years. Bonds need a two-thirds vote of the Legislature as well as voter approval.

Getting the two-thirds approval in the Legislature could be tricky since GOP lawmakers in the current Legislature would not support any borrowing earlier this year.

Rep. Pat Flood, R-Winthrop, was reluctant to support the expenditures and bonding “in a vacuum” from all of the other spending and borrowing demands that are expected in the next session.

“It would seem to me we would want to have our budget at least in order before we go out and request bonding,” he said. Nevertheless, Flood joined the other members of the committee in unanimously approving the request.

Fellow panelist Sen. Dennis Damon, D-Trenton, also expressed some concern. He said there will likely be a number of bond proposals in many areas of state government before the Legislature in January.

“There are going to be a lot of needs out there, not just this proposal,” he said.

It is expected a large bond issue for transportation purposes will be proposed, and projects ranging from environmental clean up to state park repairs are also expected to generate borrowing requests.

The lawmakers all agreed it will be a long and difficult process to “sell” the research and development package to the full Legislature.

“I said when I got here I had two things I said I had to do,” said Sen. Dana Dow, a Republican committee member from Waldoboro. “I had to teach my Democratic colleagues how to run a business, and I had to convince my Republican colleagues that they have to invest in their business. I look on government as a business and we have to invest for our future.”

Fellow committee member Rep. Chris Rector, R-Thomaston, agreed with Dow. He said Maine’s future depends on investing in its own future as any business has to invest to grow.

“This has to be looked at in conjunction with all of the other needs facing the state,” he said,” but we need to invest in Maine, and that is what we are saying with this proposal.”