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What would you do to create 3,000 jobs in Maine?
That very question is what Maine’s Senate is confronted with today, as it works to pass an $85 million dollars bond package, LD 1826. This bond package could bring more than 3,000 jobs to Maine.
Creating jobs is an extreme priority for Maine and the nation right now, especially in a time when almost 32,000 Mainers have lost their job since the start of the recession. After all, our economic recovery depends on getting Mainers back to work. The best way to do that is to fuel our economy by investing in and expanding our public infrastructure.
LD 1826 will do just that. If it passes, $85 million in state dollars would be matched by another $54 million in federal funds. Among other programs, the funds would be spent on the following job saving or job creating projects:
- Purchase 241 miles of Montreal, Maine & Atlantic Railway (saves up to 1,000 jobs)
- Improved Freight rail service & Preparation for Passenger Rail Topsham-Lewiston/Auburn (120 jobs)
- Mountain Division Rail-Western Maine (120 Jobs)
- Highway Maintenance (835 jobs)
- Ocean Gateway-Portland (168 jobs)
- Drinking Water Revolving Loan Fund (304 jobs)
- Wastewater Treatment Facility Construction (460 jobs)
In a time when Maine families are struggling to make ends meet, this bond offers great opportunity hope.
Kudos to Obama Administration and Congressional Delegation
Last week, Maine’s supplemental budget won bi-partisan approval as it passed through the house, senate, and was signed by Governor Baldacci seamlessly.
What seems to be overlooked in this budget is the tremendous amount that federal stimulus money helped our leaders eliminate many of the damaging cuts that were included in the original supplemental budget proposal.
Thanks to the “American Recovery and Reinvestment Act of 2009″ (ARRA), which directly provided $550 million in enhanced Federal Medical Assistance Percentages (FMAP), education and fiscal stabilization funds to balance the biennial budget last year, and the pending “American Workers, State, and Business Relief Act of 2010,” our federal leaders were able to infuse $114 million in new revenues into the supplemental state budget.
These new revenues allowed our state to take a responsible approach to our fiscal crisis.
Maine Can Do Better has personally thanks the Obama Administration, Representative Chellie Pingree, Representative Mike Michaud, Senator Snowe, and Senator Collins for their support of ARRA and the “American Workers, State, and Business Relief Act of 2010″.
Read the press release and letters here.
Maine’s Supplemental Budget takes a Responsible Approach
After two months of work, on Monday night (2.22.10), the house appropriations committee voted to unanimously approve Maine’s supplemental budget.
Thanks to new revenues from the 2009 federal stimulus bill and a newer companion measure that together will directly infuse $114 million into the state budget (both of which had the support of Maine’s U.S. Senators Olympia Snowe and Susan Collins, as well as Maine’s U.S. Representatives Michael Michaud and Chellie Pingree), the supplemental budget was able to restore important funds to vital public structures that were cut in the original supplemental budget proposal.
Here are some of the restorations:
- 70 million in programs serving the needs of seniors, people with disabilities and families living in poverty
- $26 million in support for k-12 education
- $11 million in funding to Maine towns and cities
- $8 million for higher education; and $5.6 million in property tax relief to low and middle income families.
Maine Can Do Better is praising this effort.
“These federal revenues and the restorations in the budget clearly demonstrate that Maine’s state and federal leaders recognize the need to preserve public structures that serve all our interests, especially in challenging times,” said Ben Dudley, spokesperson for Maine Can Do Better, “The heart of fiscal responsibility is to prevent problems from getting worse and more costly down the line. That’s precisely what the restorations in this budget do.”
To read Maine Can Do Better’s complete response to the supplemental budget click here.
New Federal Money Helps Fill Maine’s Budget Gap
Thanks to the U.S. Senate passing legislation that will extend enhanced federal medicaid assistance to the states, Governor Baldacci has outlined about $94 million in proposed budget restorations.
Maine’s U.S. Senators Olympia Snowe and Susan Collins, as well as U.S. Representatives Michael Michaud and Chellie Pingree all voted in favor of this federal action.
According to a press release from the Governor’s office… he proposes to:
- Fill the $35 million placeholder proposed in the current budget for increased federal Medicaid support;
- Restore $33.6 million in proposed reductions in health and human services, including proposed cuts to the Drugs for the Elderly program, hospitals, nursing homes, service providers and crisis services;
- Restore $5.6 million to a proposed reduction in the Circuit Breaker Program, which benefits 13,000 low- and middle-income homeowners;
- Restore $5 million to municipal revenue sharing in fiscal year 2011;
- Restore $5 million to General Purpose Aid to Education;
- Restore $1.1 million for schools who voted to support the State’s education reform law but whose partner districts rejected administrative consolidation;
- Restore $580,000 for adult education;
- Provide $470,000 in debt service for the University of Maine System to bring facilities at the University of Maine into ADA compliance and remove asbestos and mercury contamination;
- Provide $200,000 for the Maine Uncontrolled Hazardous Sites Cleanup; Restore $80,000 to the Maine Judiciary.
Read his full Press Release by clicking here.
Times Record Says “Maine Can Do Better”
Great editorial in the Times Record this Thursday:
“Yes, it’s good news that a $50 million improvement in state revenues and a $28 million Medicaid windfall allowed Gov. John Baldacci a week ago to lower the state’s budget shortfall by some $78 million.
And on Wednesday, the state budget picture brightened even more with the announcement that additional federal funds would come to Maine under the just-approved Jobs Bill, bringing the Medicaid windfall up to $46 million.
Those revenue boosts have enabled Baldacci to restore millions in funding for health and human services, including increased support for nursing homes, assisted living facilities, disability services, mental health crisis intervention and home-based services. The governor also partially restored funding for public schools and higher education — with $20 million being provided for K-12 education and $8 million for higher education in FY 2011. He also added $6 million for municipal revenue sharing for FY 2010.”
See the full story at the Times Record.
Maine Can Do Better Reacts to Proposed Supplemental Budget Changes
On March 3rd, Governor Baldacci announced changes to his proposed supplemental budget. While many news reports focused on the restoration of cuts, few focused on the $360 million cuts that still remain. After deep analysis of the supplemental budget changes, it’s clear to Maine Can Do Better that, despite the positive changes, filling the remaining budget gap with cuts alone is not the right answer for Maine. Here’s a response from Ben Dudley, spokesperson for Maine Can Do Better’s to proposed changes to the supplemental budget package….
“We’re heartened by the Governor’s proposed changes to the supplemental budget. They represent substantial restorations to programs vital to the public interest, such as funding for nursing homes, assisted living facilities, disability services, mental health crisis intervention and home-based services, k-12 and higher education, and municipal revenue sharing. Clearly Governor Baldacci heard the concerns of Maine citizens and we thank him for his efforts.
“Despite this progress, there’s still major hole in the state budget: $360 million. That’s equivalent to annual state & federal funding for the Maine Departments of Agriculture, Conservation, Economic Development, Marine Resources, The Secretary of State, The Community College System, The Maine Human Rights Commission, and the state court system combined. To make up that sizable shortfall, this budget still proposes a host of harmful cuts:
- $1.8 million cut to the Low Cost Drugs for the Elderly and Disabled program;
- $45 million cut (including lost matching funds) to MaineCare, cutting access to health care, mental health services and programs for people with developmental disabilities.
- $3.7 million cut non-MaineCare mental health services;
- $500 thousand in cuts for community support programs, including family planning, domestic violence, homeless services and child abuse prevention programs.
- $82 million cut to municipalities in revenue sharing and education funding;
- $5.6 million cut to property tax circuit breaker program;
“The remaining cuts will have a real impact on Maine families and Maine’s economy as we work to rebound from this recession. Defunding programs that keep people healthy, prepare Maine’s workforce, support local communities, and preserve jobs in a difficult economy will only make things harder in the long run. Preventing problems from getting worse, and more costly, down the line will give Maine a leg up as we work toward economic recovery.
“Will Rogers said it best, ‘When you find yourself in a hole, quit digging.’ There are other options to resolving our budget problems. Instead of relying on cuts alone to close the gap, we urge state legislators and the Governor to take another positive step toward greater fiscal responsibility, one that fully considers the costs and benefits of a mix of revenues and spending cuts. It’s the only way to ensure a budget that best positions Maine for economic recovery and future prosperity.”
New Report Reveals a Need for Balanced Budget Solutions
Portland, Maine — The Maine Can Do Better Coalition, a coalition of more than 150 organizations from across Maine, praised the annual report by the Maine Economic Growth Council (MEGC), saying it should serve as a wake up call for Maine legislators.
In their report, “Measures of Growth in Focus”, the MEGC echoed Maine Can Do Better’s call for policymakers to look beyond Maine’s immediate challenges, stating “it is precisely during [economic] downturns that states, just like companies, must position themselves for growth when the economy finally turns around.” The report continues, “We need to continue investment in our workforce and in our infrastructure. We need to support investments that will grow the ‘new economy’ in Maine”.
In contrast, the current supplemental budget proposal would weaken the state’s ability to address two of the three measures flagged by MEGC as needing attention: higher degree attainment and the cost of health care. The budget proposal includes dramatic cuts to health care and education (both k-12 and higher education) which, if adopted by the Legislature, threaten to worsen these key economic indicators.
In keeping with the MEGC recommendations, Maine Can Do Better is advocating a more balanced approach to the state fiscal crisis to ensure a speedier return to economic prosperity in Maine.
“Two of the hardest hit sectors in the budget are education and health care,” says Sara Gagne-Holmes, Executive Director of Maine Equal Justice Partners, “yet, those are the sectors that have been flagged as needing the most attention in order for Maine’s economy to thrive. Hopefully our elected leaders will see this as evidence that Maine cannot reach its full potential if we limit the budget conversation to cuts alone.”
“We need to start connecting the dots,” says Ben Dudley, spokesperson for the Maine Can Do Better Coalition, “Continually cutting health and education funding increases long term costs by diminishing the ability of Maine’s workforce to compete in the new economy. This is why the state budget writers must consider the relative costs and benefits of all available balancing options: program cuts, operational efficiencies, and responsible enhanced revenues.”
Click here to read the full report: http://mdf.org/publications/Measures-of-Growth-in-Focus-2010/214/
Proposed state budget would likely cause loss of 7000-10,000 jobs
New analysis reveals that the Governor’s proposed supplemental budget would put thousands of Maine residents in the unemployment line.
Using nationally recognized economic modeling, The Maine Center for Economic Policy (MECEP) estimates that between 7,000 and 10,000 jobs would be eliminated if the legislature were to pass the Governor’s proposal. These job losses would be felt most acutely in employment related to long-term care in nursing homes, home health care, and care for people with mental illness and developmental disabilities. Large job losses would also occur in k-12 and higher education. See full story at the Maine Center for Economic Policy.
Report: State Budget Cuts Could Cost Up to 10,000 Jobs
Governor Baldacci’s proposed state budget will cost Maine as many as 10,000 jobs, according to an analysis by a progressive think-tank based in Augusta. The Maine Center for Economic Policy says the report shows that the state simply can’t cut its way out of the recession. But anti-tax activists say the report leaves out the other side of the equation. See MPBN