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GrowSmart Maine

81 Bridge Street
Yarmouth, Maine 04096
207-847-9275

Change Is on the Horizon in Maine

By Alan Caron
Portsmouth Herald: May 27, 2007

One of Maine's best advertisements is the great migration of U-Hauls coming into the state. Five of the last six years, Maine's in-migration rate (arriving versus departing traffic) has ranked number one in the country, according to U-Haul.

We are gaining money, talent and brains. We can take this boom for granted and watch it expire or we can nurture it and watch it grow. Commendably, the Maine Legislature has seized the opportunity and taken some steps in the right direction. But much heavy lifting remains.

The Brookings Institution analyzed trends in its recent report, "Charting Maine's Future," and has concluded that Maine can keep a good thing going, but only through a package deal. Sustainable prosperity requires three things: stronger protection of Maine's brand, which is our incomparable "quality of place"; a leaner, more efficient state government; and deeper investments in innovation.

So far, the Maine Legislature has stepped up to the plate on innovation — earmarking $50 million for research and development in a bond proposal that goes to voters in November. A plan to fund investments in quality places through an increase in the lodging tax is being considered by a legislative committee.

A major undone task is streamlining government. By now, it should be beyond debate that Maine state government is bloated. Maine spends far more on administration than 10 other similar small rural states, according to an analysis by Brookings. This is money that otherwise could be used to invest in our future and lower taxes on Maine people.

Getting the fat out of government is easier said than done. Brookings surveyed states to find out which ones had learned to streamline and restructure. The news wasn't very encouraging. The one successful model is the federal Base Realignment and Closure Commission. BRAC decisions have not always been popular in Maine, but overall BRAC has succeeded in reducing the nation's overall base structure. The secret to its success: take the process out of Congress, put good people to work on the problem, then have final recommendations subject to an up-or-down vote.

Brookings recommends a similar process for Maine: an independent Government Efficiency Commission comprised of respected, knowledgeable Mainers with no axes to grind and no vested interest in state government.

A BRAC-style commission would not be unprecedented in Maine. Something similar was used in the early 1990s to reform workers' compensation. The idea is gaining traction elsewhere. New York City is employing such a model for reducing excess capacity in its hospital system.

Maine people have twice voted down successive referendums that promised a blunt approach to reducing government spending. Though these efforts failed, the margins are slimming. Maine people are growing impatient for results.

After last year's close call on TABOR, politicians throughout the state said they had "gotten the message" and pledged their commitment to streamlining government and lowering taxes. Now, they have a chance to do that and we're all watching. LD 1848, the bill that would establish the streamlining commission, is now being considered by the Legislature's Appropriations Committee. It has a good chance of passing if Maine people let their voices be heard. To find out more about the legislation and join in the call for streamlining state government, please visit our Web site at www.growsmartmaine.org.


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