In response to your editorial, “Augusta’s cycle of debt” (Maine Weekend, Nov. 6-7), you correctly pointed out some facts relating to the state’s poor cash position during the McKernan administration. However, your editorial, in my opinion, incorrectly included the Legislature in its blame for the state’s weak financial position.
Your editorial failed to mention the fact that Gov. McKernan, curiously never once named in your editorial, has the sole responsibility as chief executive officer of the state to make revenue projections. Constitutionally, the Legislature must accept these projections, without interference. Due to these projections made by McKernan and his staff, there have been negative cash balances in the General Fund since 1989.
I find it ironic that at times you have been critical of the administration’s handling of the state’s finances over the last four years, but you continuously endorse him for political office. Just prior to the 1990 election, when Gov. McKernan’s economic and revenue projections were subject to widespread criticism, including criticism from economists and financial analysts, you continued to endorse him. Never in the history of the state of Maine have state finances been in such crisis for so many years as they have been under the McKernan administration. Yet, you allow him much more lattitude than previous chief executives of this state.
Your editorial also compared the Brennan years to the present administration. During the Brennan administration, the economy was just as weak (if not weaker) and the recession just as severe. For example, in the early 1980s the unemployment rate reached 9 percent and then fell precipitously to 6.1 percent in 1984, thanks to Joe Brennan. Additionally, in 1980 the average prime rate was 15.3 percent and the average fixed mortgage rate was 13.8 percent.
Despite these tough economic times, Brennan had extremely capable financial experts who accurately projected state revenues. As a result, state spending rarely exceeded state revenues and thereby avoided the problem of 10 supplemental budgets that have plagued the McKernan administration. His supplemental budgets proposed new taxes, higher rates for existing taxes, and spending cuts, primarily in education and retirement. Unlike McKernan, Brennan surrounded himself with experienced, talented experts, was able to strengthen the economy, not make it worse, and did not blame everyone else for his mistakes. Patrick E. Paradis House Majority Whip D-Augusta
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