July 20^th 2010 Update

By Chris Hall, PRC Senior VP, Government Relations

PRC speaks out:  Welcome to mid-summer - and I hope everyone is getting a chance to relax and enjoy it.  But good weather notwithstanding there are metaphorical storm clouds on our economic horizon - troubles detailed by a recent CNBC ranking of state business climates that Tony Payne analyzed last week in the PPH.  Maine didn't fare well.

Now I'm not a huge fan of rankings, but Payne is right about our weaknesses.  I can say that based on several recent reports done by researchers right here in Maine that go way beyond simple rankings, and they all confirm that we've got lots work to do.

Scott Moody is Chief Economist at the Mane Heritage Policy Center.  He's engaged in a 12-part study of Maine's business climate - part one is here, and parts 2 thru 6 can be found and downloaded here.  Coverage in the BDN.  Moody summarized his conclusions in a Bangor talk last week, calling for investment stimulus through tax reform in order to reverse the 10-year trend of lagging private sector job creation in Maine.

Moody's colleague Steven Bowen handles education policy issues for MHPC.  Bowen is wrapping up a 14-part discussion of Maine's recent application for federal ‘Race to the Top' funding - an application that could lead to dramatic education policy changes in Maine.  Bowen's detailed look at the application contains both praise and criticism, but leaves readers with a clear sense of the huge challenges facing us in education policy.

Finally last week the Maine Development Foundation and the Maine State Chamber of Commerce teamed up to issue a series of linked reports on Maine's business climate, including the results of a survey of over 1000 business leaders, plus analysis contained in Investment Imperative II, and recommendations for action called Making Maine Work.  Coverage on MPBN here and here - the LSJ editors comment. 

Later this summer the Portland Chamber will issue its own study of our region's economic strengths and weaknesses.  It's a good bet that our analysis will mesh with the experts above.  So enjoy the summer ... but be ready to get back to work soon!

You speak out:  Cumberland County has no Charter - but a proposed County Charter will be up for approval on the November ballot, along with several initiatives to make County Government more efficient and professional.  The County Charter Commission (website) has been hard at work for 18 months on their proposed Charter plus related ballot questions, and they would like your input - please take a minute to complete this brief survey.  Thanks!

State Policy round-up:  In case you missed it, scores of new Maine laws went into effect on July 12^th.  Elsewhere:

Ballot watch: On MPBN A.J. Higgins looks at how state house races are shaping up.  MaineBiz's Jackie Farwell digs into the Oxford County Casino ballot question. 

Bonds:  In the BDN Mal Leary provides a look at how the bonds approved last month are already creating jobs in Maine.

Budget:  Maine finished the fiscal year with a $50 million dollar surplus, but the next day, as the federal government failed to provide an anticipated boost to Medicaid funding, the new state budget started off $100 million in the red and as a result more budget cuts are needed.  Top targets for cuts include HHS and education - J Dwight pointedly comments.  For all the current budget detail from state house staff check out the latest issue of Fiscal News.  State pension costs are rising, posing an additional challenge to the state budget.  Coverage in the KJ, BDN and on MPBN, and comment from the LSJ editors and Tony Payne. 

Economic Development:  As discussed by Laurie Lachance in MDF's Investment Imperative II (see leader above), Maine is facing a looming shortage of skilled workers within the next 8 years - coverage in the BDN and on MPBN, and comment by the BDN editors. 

Education:    Maine's high school graduation rate needs improvement (coverage in the KJ and on MPBN) - a stakeholder group is working on new strategies, and the PPH editors comment.  Other good recent education op-ed pieces from Duke Albanese and Jim Clair (both discussing Prepare Maine), President Selma Botman (on USM's reorganization), and State Representative Stephen Lovejoy (on continuing education reform). 

Energy: A recent survey found overwhelming support in Maine for development of wind power - the PPH editors comment, and Cianbro's Peter Vigue urges the Maine Land Use Regulatory Commission to correctly apply new laws supporting wind power development.  Wood pellets may have a promising future, and the state house delegation from Washington County discusses the importance of LNG to their region and the entire state.

Environment:  BPA is a widely used chemical - due to health concerns the Maine DEP is considering a ban.  Coverage in the LSJ and on MPBN - the BDN editors support DEP's action.  Solid waste policy issues are under discussion at the state house.  Maine's environmental community announced its 2011 agenda.

Governor's Race watch: A new national poll put LePage ahead.  The PPH reports on the most recent fund raising totals from the campaigns.

Health Care: SBA Regional Director Jeanne Hulit and State Representative Andre Cushing have strongly opposing viewpoints on how federal health care reform impacts small businesses in Maine, while state agencies aren't sure what the effects will be - the LSJ editors comment.  Maine Insurance Superintendent Mila Kaufman is seeking a federal waiver from new individual insurance requirements.  Dirigo Health is adding new enrollees. 

Tax:  Doug Rooks joins in the postmortem of tax reform.

Transportation: Commissioner Cole calls for more investment in rail and port facilities - the BDN editors respond. With a purchase deadline approaching an abandonment hearing for the Aroostook rail line was held - Rep. Michaud spoke out against abandonment.     

Upcoming event:  Last spring the legislature passed a new law requiring Maine to begin the process of instituting product stewardship.  On August 17^th the Product Stewardship State Legislative Forum will be held in Portland Maine as a part of the Council of State Governments' Eastern Regional Conference meeting.  Open to the public, the forum will highlight how product stewardship can be an economic growth opportunity for Maine.  Learn more and register here. 

Around the Region:  Flood plain mapping by FEMA remains a concern for many communities and individuals.  Coverage in the PPH and the Forecaster, plus coverage of the 90-day appeal deadline, and the possibility of changes to FEMA flood models.  The PPH editors comment on the need for accuracy.

In other area news business concerns have been raised over plans for Exit 48 bridge repairs, and new plans for Stroudwater Place and/or a nearby Portland site include a new arena - the PPH editors comment.  Want to know more about bus schedules and promotional programs for you and your employees?  Check out the Greater Portland Transit District's Metro website.  Elsewhere:

Cape Elizabeth & South Portland:  In Cape Elizabeth the Council is developing an improved communications strategy to boost public involvement.  Councilors are considering a ‘pay-per-'throw' system for trash removal.

In South Portland the City is establishing a new revolving loan fund to support the growth of existing and new local businesses.  The Council has ordered an independent 3^rd party review of plans for renovating the high school - coverage in the PPH, Forecaster and Current.  The review is already underway.  Options for a new City Hall remain under review.

Cumberland and Falmouth:  In Cumberland the Council unanimously adopted ordinance changes designed to make it easier to operate small businesses in town.

In Falmouth the Long Range Planning Committee has begun looking at revisions to the Comprehensive Plan.  If you are a Falmouth resident take this survey to share your input.  One Councilor has questions about the proposed town center project.

Portland:  The Portland Charter Commission finished up its work late last month by approving the creation of an elected mayor (details) and the institution of rank choice voting for mayor (details and reaction).  Voters will decide in November whether to approve the proposals which are both contained on a single ballot question.  The PPH editors disagreed with lumping the 2 issues together, Greg Kesich commented on the Commission's choices, and Peter Lindsay wrote in favor of rank choice voting.  Elsewhere:

Petitioners have turned in their signatures calling for a November referendum to allow non-citizen voting in Portland elections - the PPH editors think there are bigger fish to fry.

A new ordinance will give developers of new residential projects the option of either building new parking or paying a fee to support alternative transportation - the PPH editors like the approach;

The Planning Board has voted to recommend a new look at waterfront zoning restrictions on residential development - coverage in the PPH and the Forecaster.  The PPH editors think any changes ought to go to the voters; 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:  A proposed plan for Running Hill Road traffic ran into public opposition at a recent hearing.  A proposed Town Charter amendment would create a recall procedure for town Councilors.

Westbrook:  As noted above, new plans for Stroudwater Place may include a new arena.  Spring Street zoning continues to generate court action - coverage in the Current and the PPH. 

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!