Kennebec Journal:
Big tax cuts promoted
at gathering

AUGUSTA -- The state should be looking to cut $800 million from the budget to give people tax relief, former Central Maine Power President David Flanagan said Friday.

Flanagan, who served on a panel at a summit sponsored by GrowSmart Maine, said current efforts to cut $10 million won't make a dent in what he sees as overspending at the state level.

Cutting $60 million to $100 million -- as suggested by a Brookings Institution report released last year -- won't help, either, he said.

"Maine government, at the state and local level, cries out for restructuring and reform," Flanagan said to about 80 people gathered in an Augusta Civic Center conference room.

GrowSmart Maine, a Yarmouth based nonprofit, kicked off its 2007 conference with a speech on leadership by Harvard University professor Ron Heifetz. More than 700 people listened to the keynote address before breaking into smaller groups to discuss issues such as mill redevelopment, global warming, school reform, tourism and passenger rail.

Heifetz said leaders can help change society, but they also must recognize what's best left alone.

"In order to lead, one has to be willing to fail over and over again," he said. "You need to decide what DNA you want to hold onto so you don't lose the whole enterprise of what it means to be Maine."

Flanagan, who ran for governor as an independent in 2002, now serves as president of the Maine Public Spending Research Group, a nonprofit, nonpartisan corporation that analyzes tax and spending data. He said the state must look to cut spending in education, and health and welfare programs, if it is going to save any significant money.

"It is critical to focus on the big-ticket items," he said.

Others warned of looming citizen tax revolts.

Tony Payne, executive director of the Alliance for Maine's Future, said the Taxpayer Bill of Rights, rejected by voters last year, triggered a lot of discussion. The alliance is a nonprofit, nonpartisan group of Maine business leaders.

"The son of TABOR is in the pipeline," he said, referring to a renewed effort to gather signatures to put a new citizen initiative on the ballot.

But Payne said rather than adopt "blunt instruments," government needs to form a panel that would recommend cuts to the Legislature. He urged people to call legislative leaders to ask them to allow consideration of a bill that would set up the commission.

Flanagan and Payne were just two of dozens of panelists who offered their thoughts on various issues at the conference, which was based on the findings of a report released by the Brookings Institution Metropolitan Policy Program.

GrowSmart Maine hired Brookings to conduct a study of how Maine's economy can grow without damaging its natural resources. This is the second year GrowSmart has held a fall conference to discuss the findings.

The report urged larger investments to revitalize cities and towns and more money for conserving farmland, forests and lakes. It also said the state should put more money in research and development.

To pay for these recommendations, the report called for increasing the lodging tax, cutting $60 million to $100 million from state government and reducing per-pupil costs in kindergarten-through-grade-12 schools.

Chuck Lawton, a senior economist with the economic development consulting firm Planning Decisions, said the state's slow population growth, declining school enrollment and poverty rates suggest changes need to happen soon.

"The question of our panel was, can Maine government streamline itself?" he said. "We can't afford not to."

Susan Cover -- 623-1056

scover@centralmaine.com

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