December 22, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

Plan aims to boost Maine’s economy > Democratic package includes bond issues for creating, preserving jobs

AUGUSTA — A group of legislative Democrats on Wednesday promoted a long list of proposals they said would create jobs and stimulate Maine’s lagging economy.

Heading the list was passage of $106 million in job-creating and job-preserving bond issues this spring. The Democrats also would create job-training opportunities for 4,000 dislocated workers at campuses of the Maine Technical College System.

They also would take steps to increase access to capital for Maine businesses, stimulate housing construction, and develop a long-range plan for economic growth.

They would encourage research and development at campuses of the University of Maine System, lobby for a federal peace dividend to help with conversion of military bases, and try to reduce the cost of doing business in Maine.

Many of the recommendations dovetail with proposals made by a bipartisan Jobs Commission and endorsed by Republican Gov. John R. McKernan.

But the Democratic package carries a price tag of $8.5 million beyond the long-term cost of borrowing through bond issues.

The bond issues for highway and municipal construction are expected to go before voters in a special referendum in April. The Transportation and Housing and Economic Development committees still are working out details of how much and what ingredients will go into the bond package.

“It’s been quite a while since times have been this hard in Maine, probably not since the 1930s and the Great Depression,” said House Majority Leader Dan A. Gwadosky, D-Fairfield. “There is real and and compelling pain in this state.

“The past two years have witnessed a widespread dismantling of state government as a result of dwindling state revenues,” Gwadosky said. “Some have worried that in seeking short-term solutions to our budget woes, we would undermine our capacity for economic recovery. Despite hard times, we need to continue to invest in priority areas so that we are ready to respond once the economy turns around.”

Gwadosky said about 50 jobs could be created for every $1 million in bonds issued, and the total bond package endorsed by the Democrats could be expected to create about 6,500 jobs.

Jack Dexter, president of the Maine Chamber of Commerce and Industry, said he had not had time to study the Democratic proposals in detail, but that the agenda seemed to agree with many of the goals of the business group.

“I’m delighted to see this,” he said. “I’m glad they’ve weighed in with some suggestions.”

Among proposals advanced by the Democrats were these:

Issue $62 million in bonds that already have been authorized but not issued.

Encourage passage this spring of $56 million in transportation bonds and $43 million in bonds for municipal services, schools, higher education facilities, group homes and rural clinics.

Pass a $7 million job-preservation bond issue that would help Maine businesses with serious cash-flow problems that are in danger of going out of business.

Create job-training slots for 4,000 dislocated workers at technical college campuses over the next 2 1/2 years. Have the Department of Labor change rules on unemployment compensation so that those enrolled in job training would not lose unemployment benefits.

Expand business-assistance programs run by the Finance Authority of Maine and encourage the Maine State Retirement System to invest in state-guaranteed loans to Maine businesses.

Invest in a Biotechnology Center and a Center for Maine’s Science and Technology Future at the University of Maine.

Lobby federal leaders for a 7 percent annual transfer of former military spending to help with peacetime conversion. Gwadosky said this would amount to more than $200 million a year in Maine.

Promote Workers’ Compensation reform, regulatory reform, and less costly energy sources for Maine businesses.


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