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Prosperity report on Maine issued

By Victoria Wallack
Brunswick Times-Record, January 4, 2008

Plan for Maine's future success garners bipartisan support

AUGUSTA — The committee charged with outlining a plan for Maine's future prosperity has unanimously endorsed a report that calls for creation of a special citizen commission to recommend $75 million in cuts to state government spending. The plan also asks the Legislature to take another crack at rebalancing the state's tax code to lower the top income tax rate.

Created to respond to the Brookings Institution Report "Charting Maine's Future: An Action Plan for Promoting Sustainable Prosperity and Quality Places," released in 2006, the committee focused on nine areas, from improving the state's business climate and transportation infrastructure to protecting Maine's unique quality of place.

Its recommendations include everything from reform of the state's health care system and tax code — two major initiatives that failed to get traction in the last session — to more business friendly regulatory agencies.

Legislators were short on details at a Thursday morning press conference called by Democratic leaders because the report was still being finalized. The committee, which included seven Democrats, seven Republicans, one independent and the tribal representative for the Penobscot Nation, who now identifies herself as a Republican, met into the evening on Wednesday to craft compromises that allowed for a unanimous report.

"The best message I think Maine people can hear today is Republicans, Democrats and independents can work together to come up with a blueprint for prosperity," said House Speaker Glenn Cummings.

Senate President Beth Edmonds said she would remain open-minded to what the final committee report says, even though on Wednesday she said further cuts to state government would hurt Maine's most vulnerable people.

Edmonds also cautioned there was a lot to deal with in the report, particularly since the Legislature is due to recess in April.

"My only sort of caveat is this is the short session, and I don't think we'll get to everything," she said.

Republicans were heralding the recommendation to create a nine-member citizen commission to find $75 million in state government savings by identifying expenditures that can be eliminated or reduced by consolidation and greater efficiency.

The recommendations would be made to the newly elected Legislature in January 2009. The $75 million would be separate from the current $95 million legislators have to cut just to keep the budget balanced.

"This is a victory for the people of Maine," said Sen. Jonathan Courtney, R-Springvale, who served on the committee. "Getting a unanimous report was hard work and with the help of my fellow Republicans, we were able to hold the line and get a report that will force the state government to be more efficient."

At one point in the process, the committee was so fractured there were multiple reports being proposed.

Rep. John Piotti, D-Unity, the House chairman of the prosperity committee and the Legislature's Taxation Committee, said he believes the report will set the tone for this legislative session and hopes tax reform is at the top of the agenda.

"We'd love to see something in the next month" on tax reform, Piotti said, and not let it get caught up in the political wrangling over the supplemental budget, where at least $95 million in cuts or new revenue will have to be found.

According to a synopsis provided by Democratic leaders, the report recommends:

— That Gov. John Baldacci submit legislation on quality of place and issue an executive order on regulations designed to improve Maine's business climate.

— That legislation be submitted by the Insurance and Financial Service Committee to expand access to affordable health care.

— That legislation be reported out by the Health and Human Services Committee to find efficiencies in Medicaid.

— That the Taxation and Appropriations committees report out legislation on new spending restraints and comprehensive tax reform, and propose creation of an independent commission to streamline and restructure government with savings used to reduce the income tax.


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