Election 2015: How did Maine businesses fare?
Tuesday’s election handed some wins to Maine’s business community, including the overwhelming approval of statewide infrastructure and housing bonds and the rejection of referendums in Portland opposed by business groups.
On the statewide ballot, Maine voters approved borrowing a combined $100 million to fund low-income senior housing and highway and bridge improvements, but the passing of the campaign finance question will mean the elimination of $6 million in unspecified tax incentives for businesses.
Dana Connors, president of the Maine State Chamber Commerce, said in an interview Wednesday morning that the approval on the bonding questions are positives for the state and its economy.
However, the state chamber and more than a dozen industry associations and other business groups opposed Question 1, which will provide more funding to publicly financed candidates, on the grounds that it is supposed to be partially funded by eliminating corporate tax breaks.
The question, approved 55% to 45%, according to unofficial results Wednesday morning, directs the Legislature’s Taxation Committee to permanently eliminate $6 million in corporate tax breaks in the state’s two-year budget. Legislators will prioritize “low-performing, unaccountable tax expenditures with little or no demonstrated economic development benefit,” but no specific incentive programs were named.
Connors said that his organization will stay active and engaged in the process to ensure lawmakers “fully understand the impact of the decisions that are made and the incentives that are chosen.”
Previous attempts to review Maine’s business incentive programs have failed to yield results, including an effort to balance the state’s budget in 2013 by finding $40 million in revenue from tax breaks.
Connors said he was encouraged by the fairly close margin on the question. He agreed with the spirit of the effort, to improve accountability and transparency in elections, but noted the part about funding the increase by eliminating tax breaks didn’t appear in the question.
In Portland, both referendum questions opposed by business groups failed. Voters in the city rejected the effort to incrementally raise the minimum wage to $15 per hour and rejected the proposed scenic view ordinance.
A wide-ranging coalition made up of developers, business group, affordable housing advocates and more opposed the scenic view question, saying it would stifle needed development. It would have created a scenic viewpoint zone for the proposed development at the Portland Co. complex at 58 Fore St. and allowed residents to request other viewpoint protections around the city. It was defeated 63% to 37%.
The minimum wage question, which lost 58% to 42%, would have raised the city’s minimum wage to $15 per hour for businesses employing 500 or more people in 2017 and all businesses in 2019. The city’s minimum wage is already set to increase to $10.10 per hour from a City Council vote.
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