January 30^th 2012 Update

 By Chris Hall, PRC Senior VP, Government Relations

PRC speaks out:  Last week the Governor gave his first State of the State address (PPH, LSJ, BDN).  Both sides of the aisle praised the Governor's speech (Senator Katz called it LePage's "best speech ever") and his emphasis on improving the economy drew bipartisan support (KJ, BDN). 

The most powerful part of the Governor's address came last - his plea for greater efforts to end domestic violence, and for men to take ownership of the problem and its solution, received a resounding ovation in the State House and salutations from the editors of the PPH and LSJ.

The rest of the Governor's speech set the major themes for the remainder of the session.  Three things are worth noting in particular:

1.       The state budget needs balancing.  Progress on the pending supplemental budget has been contentious and slow, but matters are beginning to come to a head and the impacts of final budget decisions in our region will be substantial.

2.      A battle is brewing over renewable energy policy in Maine.  A citizens' initiative calling for more Maine-based renewable power has the Governor labeling it a ‘jobs killer."  Again, policy choices affecting the price of power will have deep implications for jobs and economic growth in our region for years to come.

3.      Education Commissioner Steve Bowen released his long-term strategic plan for K-12 education reform.  The broad strokes of his architectural redesign of primary and secondary education in Maine will be as important as any other policy choices in our region, and across the state.

You'll find more information on all these issues, and many more, below.  At the Portland Regional Chamber we are working directly with decision makers to make sure the interests of our members and our region are respected in the decisions being made this winter.  As always, if you want to add your own voice, just let me know.

Report:  Last year a divided legislature reformed Maine's health insurance laws and regulations.  LD 1333, which became Public Law Chapter 90, is beginning to take effect in Maine's individual and small group insurance markets.

A new actuarial report from Gorman Actuarial of Massachusetts shows that many insureds will pay less, while some will pay more.  The BDN and MPBN provided coverage of the report, and the Bureau of Insurance has posted the full text of the report, along with lots of additional information on PL 90. 

Among Gorman's key findings are:  a) the individual market may see a 12-15% rate reduction due to PL 90's individual reinsurance provisions, b) 80% of individual insurance purchasers will see a rate reduction, c) the size of the individual insurance market may grow 6-10% annually in response to PL 90, and d) most small groups will see little premium change due to PL 90, but 7% will see big increases, and 9% will see big decreases.

As the new law settles in there are changes to PL 90 pending this session in the form of LD 1670, An Act To Extend the Scope of the Maine Guaranteed Access Reinsurance Association - a bill that would expand high risk pool eligibility to small group insurance purchasers with 10 or fewer insureds at the cost of additional insurance premium surcharges.

The debate over PL 90 is both substantive and political.  You'll likely hear more about the impacts of PL 90, both good and bad, in the weeks ahead.

State Policy round-up:   State Treasurer Bruce Poliquin's business dealings have raised constitutional questions (PPH, BDN, LSJ, MPBN) - the Attorney General is looking into the issue (PPH).  The PPH editors, Doug Rooks and Bill Nemitz commented.  The battle over the Maine State House Authority's spending heated up (LSJ, MPBN), and OPEGA will conduct an expedited review (BDN, LSJ, PPH).  Matt Wickenheiser provided in-depth background for the debate (BDN).  Elsewhere:

• Budget: Ten days ago the Governor defended his proposed MaineCare cuts and said he'd be forced to close Maine schools early if the MaineCare cuts weren't made (PPH, KJ, LSJ, MPBN) - upon further review it seemed he couldn't do that, but he made it clear there isn't much else to cut (LSJ, BDN, KJ). Late last week the Governor reiterated the choice - MaineCare cuts or school funding reductions (BDN). The BDN editors commented.

$37 million dollars in MaineCare eligibility reductions contained in the Governor's $220 million dollar supplemental budget require federal waivers to become effective.  A letter last week from federal officials indicated the waivers were unlikely to arrive (LSJ), prompting a visit by the Governor to the Appropriations Committee where he told members that he'd take care of the waivers if they'd just vote through his MaineCare cuts (LSJ, PPH, MPBN). Despite the Governor's urging it looks like the Appropriations Committee will not complete work on the supplemental budget by the end of the month (BDN).

Jackie Farwell reported that 5% of all MaineCare patients account for more than 50% of MaineCare's total cost (BDN).  Lindsay Tice reported on the job impacts of the budget cuts on hospitals (LSJ), something also detailed by Laird Covey and Lee Myles.  Progressives urged alternatives to the cuts, including increased taxes (BDN, MPBN) - the PPH editors called for alternatives to MaineCare cuts as well.

• Ballot watch: Gay marriage will be back on the ballot this November (PPH, LSJ, MPBN). Action on changes to Maine's Clean Elections Act is still pending at the state house (BDN).

• Economic Development:  Kestrel Aircraft Co.'s decision to shift investment from Maine to Wisconsin occasioned analysis (BDN, PPH) and comment from the BDN editors and Michael Aube.  In response, creation of a new state credit agency may be considered (PPH).  Charles Lawton detailed ominous labor force data for northern Maine.

• Education:  Commissioner Bowen released his long-awaited strategic plan for K-12 education reform (PPH, KJ, MPBN) - read the full plan here.  Bowen discussed his plan on WGAN.  Although it wasn't in the Governor's State of the State address, Bowen confirmed that the administration will submit additional school choice legislation this session (BDN).  LD 1422, requiring a standards-based high school diploma by 2017, got unanimous support from the Education & Cultural Affairs Committee (PPH, LSJ, MPBN).  Lisa Martin outlined the Manufacturers Association of Maine's workforce development strategy.

• Energy: Proponents of a new citizens' initiative to expand renewable power in Maine held a rally (PPH) and expressed confidence that they'd have the signatures to put the issue on the November ballot (PPH).  The Governor called the initiative a "jobs killer" (PPH) and spoke out in the strongest terms against the proposal (BDN).  WGAN interviewed Beth Nagusky and Adrienne Bennett on opposite sides of the issue.  Friends of Maine's Mountains joined the Governor opposing the initiative (LSJ), while George Smith had strong praise for it. 

A bill (LD 1644) to expand natural gas pipelines in central Maine had its hearing (LSJ).  The potential of tidal power in Maine was reported by federal authorities to be enormous (BDN).

• Environmental:  A coalition of environmental groups outlined their goals for the 2012 session (LSJ).  Commissioner Bill Beardsley discussed proposed changes in LURC (see LD 1798 below), and Roger Ek shared his view..

• Health Care:  Maine's debt to hospitals is growing again (BDN). Legislation (LD 1497 and LD 1498) to create a health care insurance exchange pursuant to federal law is still up in the air at the state house (BDN).  A bill (LD 1691) to limit the cost of specialty drugs has been introduced (BDN).

• Labor:  Right to work legislation (LD 309) is still pending at the state house (BDN).  LD 1725 is a sweeping administration proposal that would significantly tighten unemployment insurance benefits and create tough new penalties for fraud (BDN, PPH) - there's a public hearing on the bill on January 27^th.

• Real Estate:  MEREDA's Annual Conference featured a new report showing that Maine's real estate markets are beginning to recover (BDN preview, PPH and BDN conference reporting).

• Small Business:  Karen Mills, the Administrator of the Small Business Administration and the newest member of President Obama's Cabinet, spoke at Eggs & Issues about small business issues (BDN) - she also did a Q&A that touched on additional ways her agency helps small companies (BDN).  Our Small Business Matters kickoff program featured Les Otten talking about how entrepreneurs think progress and succeed - listen to the program here.

• Tax policy:  Matt Wickenheiser detailed new Maine tax burden numbers from the Tax Foundation (BDN).  LD 849 would commit future surplus state revenues to income tax reduction - the bill is headed to the House and Senate floors (BDN).  Gordon Weil commented on the nature of tax exemptions (LSJ).

Bills to Watch:  As legislation is printed we highlight some of the bills you may want to know more about, or participate in. Need to know more about a bill?  Just click the LD number below and off you go! 

Here are bills printed in the last 2 weeks that you may want to know more about:

• LD 1762, An Act To Amend and Clarify the Public Charter School Law - makes a series of changes to last year's law allowing charter schools in Maine.

• LD 1768, An Act To Improve the Department of Environmental Protection's Annual Waste Discharge License Fee System - restructures the fee schedule in several ways.

• LD 1770, An Act To Encourage Parental Involvement in Education - requires every school district to come up with a plan for the 2013-14 school year.

• LD 1784, An Act To Implement Recommendations To Reform Telecommunications Regulation - Presents the PUC's plan for changes to Maine's telecommunications regulatory structure.

• LD 1798, An Act To Reform Land Use Planning in the Unorganized Territory - the bill to restructure the Land Use Regulatory Commission.

What's happening this week at the State House:  In every Update we highlight a wide variety of bills that will affect you, your business and your community.  To keep track of the bills that are most important to you, you can find the entire state house schedule right here including public hearings, work sessions and all the other legislative activity around any bill you're interested in.  Make sure to use the navigation buttons on the left to find all the information you need.

Here's another handy resource - this link takes you to a list of all the Committee activities scheduled for the next 5 days.

Around the Region:   Gang related activity has picked up in the region, prompting local and state house reaction (BDN, MPBN).   Home schooling is gaining in popularity (Forecaster).  Elsewhere:

• Cape Elizabeth & South Portland: In Cape Elizabeth the Council will hold a public hearing on proposed sewer rate increases (Forecaster).

In South Portland the debate over the 2013-14 school budget has begun (Forecaster).

• Cumberland and Falmouth:  In Cumberland the Council approved expansion of a municipal TIF district that could lead to the creation of 100 new jobs in town (Forecaster).

In Falmouth the Council picked a new use for the town's unused school properties (PPH, Forecaster) - public reaction was positive (PPH, Forecaster).

• Portland:  The state budget shortfall hits Portland (and the surrounding region) as hard as any community in the state.  Many voices in the City (including ours) are speaking out about the impacts of state budget cuts on people, jobs, taxes and insurance costs (PPH).  Elsewhere:

• The Council voted a non-binding resolution to oppose corporate personhood (PPH, BDN);

• Searches are underway for a new School Superintendent and a new Principal for Lyman Moore Middle School (BDN);

• Portland's proposed charter school signed an agreement with Google for laptops (BDN);

• Green building rules in Portland may be up for changes (Forecaster);

• Mayor Brennan continued his work to restructure the Council's committee structure (PPH);

• Forest Avenue traffic and parking changes were proposed, raising concerns (PPH); and

• For the latest check out Chris O'Neil's Inside City Hall. Chris serves as a consultant to the Portland Community Chamber, working closely with members and staff to represent the Chamber before Portland City officials. Inside City Hall covers a host of Portland related issues. It's something that everyone with an interest in Portland affairs will want to read.

• Scarborough:  Residents have raised concerns about workforce housing plans (Forecaster).

• Westbrook:  Officials are considering several options for a new Public Works facility (PPH, Current).

Want to speak out?   It's easy to do, and believe it or not, it can really work. Notice that all the legislative committees mentioned above are linked - just click on them and you'll get emails, phone numbers and everything you need to make your voice heard in the state house.  If you need help, just email me!

Feedback:  So what do you think?  We'd love to have your thoughts on anything you've read here, or on other topics that are important to you.  The more you talk to us, the better we'll represent your views.  Send an email if you'd like to share your feedback with me - and thank you!

Partners for Progress Policy Updates from the Portland Regional Chamber are supported by the generous contributions from our Partners for Progress.  If you'd like to become a Partner, please contact Chamber CEO Godfrey Wood.