September 5, 2005
And they're off | John Baldacci, Peter Cianchette and Peter Mills on business, the economy and the 2006 contest for the Blaine House
By Douglas Rooks
Looking toward next year's governor's race, the three major party candidates to have announced so far seem to agree on what the important business issues are, though they have quite different ideas about what the state should do to address them.
The specificity about issues of taxes and spending, government efficiency and the costs of health care and energy are a marked contrast to the 2002 governor's race, when casino gambling emerged as a major issue and the candidates were often studiously vague about what they would actually do in office. At least some of that refinement in strategy is due to the fact that, for the early front-runners, it would be a rematch of the 2002 race.
Peter Cianchette is seeking the Republican nomination for the second time, and the man he lost to, Democrat John Baldacci, is the incumbent seeking the maximum second four-year term permitted under the state constitution. Before a rematch can occur, however, Cianchette must first overcome a GOP primary challenge from Sen. Peter Mills, a legislator for the past 12 years and a member of one of the state's oldest political families.
Republican Rick Bennett, former Senate president and the GOP's Second District congressional nominee against Baldacci in 1994, is still mulling a bid. Among independents, environmental activist Nancy Oden plans to run; no members of the Green Independent Party have so far announced their candidacy.
In recent interviews with Mills, Cianchette and Baldacci, the three sketched out their ideas while promising further specifics once the campaign gets started in earnest.
There are reasons for caution at this stage of the race. It remains to be seen how the Base Realignment and Closure commission's decisions for Maine will play out politically. In addition, candidates often look for indicators of the public mood in the off-year election in November. Even though no candidates are on the ballot, the verdict on bond issues could be significant, as will the result of Maine's fourth statewide vote on the gay rights issue.
Peter Cianchette
Age: 44
Party: Republican
Previous political experience: Gubernatorial candidate in 2002; state chairman of President Bush's 2004 re-election campaign
Cianchette is frank about his reasons for taking the unusual step of seeking statewide office again after losing the first time out. He is "frustrated," as he put it, with the direction of state government, and more convinced than ever that the policies he supports would work better. "In Maine, the cost of doing business is 10% above the national average," he said. "Until we begin to deal with the underlying conditions that cause that difference, we're not going to be competitive."
Cianchette said that, while a businessman himself ˆ he owns a public affairs and consulting firm in Portland, and co-owns a venture capital company ˆ he see no conflict between a pro-business platform and one that benefits all the state's citizens. "What we should want for business is really no different than what we should all want for our state," he said.
While steering around specific criticisms of the current administration ˆ he promises "a very full and concrete list" of issues after a formal announcement this fall ˆ he does mention several points on which he differs from the incumbent.
A budget-balancing decision to cut back payments in the Business Equipment Tax Reimbursement program from 100% to 90% "sent a negative signal" to businesses across the state, and those that might consider locating here, he said. "This is really a contract we had with the businesses who signed it. The state didn't honor the terms."
Cianchette points out that Baldacci had pledged to repeal the personal property tax that BETR now pays for. "Not only has that not happened, but we're headed in the opposite direction," he said.
He also differs with Baldacci over what to do about the rising cost of health care and health insurance. Unlike the Dirigo Health program, which involves the state more heavily in decision-making, Cianchette believes the marketplace is a better place to look for answers. "More mandates and assessments on health insurance premiums is definitely not the way to go," he said.
Peter Mills
Age: 62
Party: Republican
Previous political experience: Six terms in the Maine Legislature
Peter Mills, whose legislative experience is longer than Cianchette's and equals Baldacci's, sees state government in different terms. Frequently called a maverick, he often strays from Republican orthodoxy, particularly on labor and public health issues; Cianchette, by contrast, was Maine chairman of George Bush's 2004 re-election effort.
Said Mills, "Anyone who thinks state government or the governor is responsible for running the Maine economy is deluded." Augusta is directly responsible for, at most, 10% of the gross state product, and leaders in Augusta would do better to make government more businesslike and efficient than attempt to manage economic variables, he said.
Mills is highly specific about his platform, and issued a 12-point plan as soon as he announced his bid in early August. He focuses intensely on the processes of government itself, as in his pledge to overhaul the state retirement system that now covers all state employees and public school teachers.
The unfunded $3 billion liability in the retirement system is a "financial albatross," that cries out for reform, he said. By providing full benefits only to long-time state employees, the system is completely wrong for an era that emphasizes changing job skills and flexibility, Mills insists. New employees should be offered a new deal within the Social Security system that is "fully portable," so there would be no penalty for leaving and then returning to state government as needed.
Mills is similarly detailed about his thoughts for bringing private sector expertise to the Department of Health and Human Services, extending the school year and the school day, paying off public debts, and involving the citizenry more through referenda on taxes and major state programs. He is a strong advocate of regional government and the elimination of what he calls the "duplicate services" offered by the state, counties and municipalities.
Whether his encyclopedic knowledge of state policy and his detailed pronouncements can engage the public has yet to be tested, but Mills says he is looking forward to making his case to a broader audience than he has enjoyed as a legislator.
John Baldacci
Age: 50
Party: Democrat
Previous political experience: Governor, 2002-2006; four terms in the U.S. House of Representatives; six terms in the Maine State Senate
John Baldacci's varying fortunes have been a frequent topic for State House conversation as he prepares for a second campaign. After a first year that saw strong bipartisan support for a biennial budget, bond issues and the Dirigo Health plan, the governor has faced increasing Republican opposition almost across the board. Dirigo Health is under attack, the last two budgets have been approved only by Democrats and the current bond package is less than half the size he proposed.
Yet Baldacci believes that, by focusing on the bigger picture, voters and business leaders will see that the administration's accomplishments are significant.
Maine is one of the few states that dealt with a serious economic downturn without raising broad-based taxes, he said. While he recognizes that the tax burden is high and wages are relatively low, there has been progress. "We've gone from 34th among the states in personal income to 30th," he said ˆ on track to reach 25th, or the national average, by the time he will have completed a second term. Baldacci takes note of a recent Milken Foundation study that finds Maine among the top five states in reducing the cost of doing business. "It takes time, but I don't think there's any question we're moving in the right direction," he said.
He cites increased enrollment in the state's community college system, the successor to the technical colleges, as an important trend. "Every survey we have shows the connection between higher education and better jobs," the governor said.
Baldacci acknowledges setbacks such as the failure of his bills to repeal the personal property tax on business equipment. But this year's budget struggle has highlighted the need for productive investments in plant and equipment. "We have more support than ever before," he said, and is confident that next time, the bill will succeed.
The governor said that behind such highly publicized episodes as the computer problems affecting payments to Medicaid providers lies a reinvention of many state government departments: "A lot of the organization is much improved from where we found it," he said. "I see the challenge as being not just good, but the best at what we do." And he says that his administration has confronted management problems wherever they've been found. "We're certainly not sweeping anything under the carpet. It's all out there for the public to see," he said.
Like Cianchette, Baldacci also sees work on taxes, health care and energy costs as key to improving the economy. And he said he's made progress in each area. Dirigo Health, he said, "is insuring thousands of people who didn't have coverage before." By removing bad debt and charity care from hospital ledgers, which he said amounts to 20% of their budgets, Dirigo will have a major impact on future costs.
And he contrasts his administration's approach to energy with legislation just passed by Congress, which contains major subsidies for the oil, coal, gas and nuclear industries. "We're investing in solar, in wind, in alternative energy that builds the Maine economy," he said. So far as a small state can affect energy policy, "We're doing our part," he said.
Asked if he would change anything about his approach to the job, Baldacci said he would prefer to be out in public more, "at schools and forums and community events," rather than behind his State House desk. "If you tell people your story directly," he said, "it makes a big difference."
The coming campaign should allow him ˆ and the other candidates ˆ exactly that opportunity.
The specificity about issues of taxes and spending, government efficiency and the costs of health care and energy are a marked contrast to the 2002 governor's race, when casino gambling emerged as a major issue and the candidates were often studiously vague about what they would actually do in office. At least some of that refinement in strategy is due to the fact that, for the early front-runners, it would be a rematch of the 2002 race.
Peter Cianchette is seeking the Republican nomination for the second time, and the man he lost to, Democrat John Baldacci, is the incumbent seeking the maximum second four-year term permitted under the state constitution. Before a rematch can occur, however, Cianchette must first overcome a GOP primary challenge from Sen. Peter Mills, a legislator for the past 12 years and a member of one of the state's oldest political families.
Republican Rick Bennett, former Senate president and the GOP's Second District congressional nominee against Baldacci in 1994, is still mulling a bid. Among independents, environmental activist Nancy Oden plans to run; no members of the Green Independent Party have so far announced their candidacy.
In recent interviews with Mills, Cianchette and Baldacci, the three sketched out their ideas while promising further specifics once the campaign gets started in earnest.
There are reasons for caution at this stage of the race. It remains to be seen how the Base Realignment and Closure commission's decisions for Maine will play out politically. In addition, candidates often look for indicators of the public mood in the off-year election in November. Even though no candidates are on the ballot, the verdict on bond issues could be significant, as will the result of Maine's fourth statewide vote on the gay rights issue.
Peter Cianchette
Age: 44
Party: Republican
Previous political experience: Gubernatorial candidate in 2002; state chairman of President Bush's 2004 re-election campaign
Cianchette is frank about his reasons for taking the unusual step of seeking statewide office again after losing the first time out. He is "frustrated," as he put it, with the direction of state government, and more convinced than ever that the policies he supports would work better. "In Maine, the cost of doing business is 10% above the national average," he said. "Until we begin to deal with the underlying conditions that cause that difference, we're not going to be competitive."
Cianchette said that, while a businessman himself ˆ he owns a public affairs and consulting firm in Portland, and co-owns a venture capital company ˆ he see no conflict between a pro-business platform and one that benefits all the state's citizens. "What we should want for business is really no different than what we should all want for our state," he said.
While steering around specific criticisms of the current administration ˆ he promises "a very full and concrete list" of issues after a formal announcement this fall ˆ he does mention several points on which he differs from the incumbent.
A budget-balancing decision to cut back payments in the Business Equipment Tax Reimbursement program from 100% to 90% "sent a negative signal" to businesses across the state, and those that might consider locating here, he said. "This is really a contract we had with the businesses who signed it. The state didn't honor the terms."
Cianchette points out that Baldacci had pledged to repeal the personal property tax that BETR now pays for. "Not only has that not happened, but we're headed in the opposite direction," he said.
He also differs with Baldacci over what to do about the rising cost of health care and health insurance. Unlike the Dirigo Health program, which involves the state more heavily in decision-making, Cianchette believes the marketplace is a better place to look for answers. "More mandates and assessments on health insurance premiums is definitely not the way to go," he said.
Peter Mills
Age: 62
Party: Republican
Previous political experience: Six terms in the Maine Legislature
Peter Mills, whose legislative experience is longer than Cianchette's and equals Baldacci's, sees state government in different terms. Frequently called a maverick, he often strays from Republican orthodoxy, particularly on labor and public health issues; Cianchette, by contrast, was Maine chairman of George Bush's 2004 re-election effort.
Said Mills, "Anyone who thinks state government or the governor is responsible for running the Maine economy is deluded." Augusta is directly responsible for, at most, 10% of the gross state product, and leaders in Augusta would do better to make government more businesslike and efficient than attempt to manage economic variables, he said.
Mills is highly specific about his platform, and issued a 12-point plan as soon as he announced his bid in early August. He focuses intensely on the processes of government itself, as in his pledge to overhaul the state retirement system that now covers all state employees and public school teachers.
The unfunded $3 billion liability in the retirement system is a "financial albatross," that cries out for reform, he said. By providing full benefits only to long-time state employees, the system is completely wrong for an era that emphasizes changing job skills and flexibility, Mills insists. New employees should be offered a new deal within the Social Security system that is "fully portable," so there would be no penalty for leaving and then returning to state government as needed.
Mills is similarly detailed about his thoughts for bringing private sector expertise to the Department of Health and Human Services, extending the school year and the school day, paying off public debts, and involving the citizenry more through referenda on taxes and major state programs. He is a strong advocate of regional government and the elimination of what he calls the "duplicate services" offered by the state, counties and municipalities.
Whether his encyclopedic knowledge of state policy and his detailed pronouncements can engage the public has yet to be tested, but Mills says he is looking forward to making his case to a broader audience than he has enjoyed as a legislator.
John Baldacci
Age: 50
Party: Democrat
Previous political experience: Governor, 2002-2006; four terms in the U.S. House of Representatives; six terms in the Maine State Senate
John Baldacci's varying fortunes have been a frequent topic for State House conversation as he prepares for a second campaign. After a first year that saw strong bipartisan support for a biennial budget, bond issues and the Dirigo Health plan, the governor has faced increasing Republican opposition almost across the board. Dirigo Health is under attack, the last two budgets have been approved only by Democrats and the current bond package is less than half the size he proposed.
Yet Baldacci believes that, by focusing on the bigger picture, voters and business leaders will see that the administration's accomplishments are significant.
Maine is one of the few states that dealt with a serious economic downturn without raising broad-based taxes, he said. While he recognizes that the tax burden is high and wages are relatively low, there has been progress. "We've gone from 34th among the states in personal income to 30th," he said ˆ on track to reach 25th, or the national average, by the time he will have completed a second term. Baldacci takes note of a recent Milken Foundation study that finds Maine among the top five states in reducing the cost of doing business. "It takes time, but I don't think there's any question we're moving in the right direction," he said.
He cites increased enrollment in the state's community college system, the successor to the technical colleges, as an important trend. "Every survey we have shows the connection between higher education and better jobs," the governor said.
Baldacci acknowledges setbacks such as the failure of his bills to repeal the personal property tax on business equipment. But this year's budget struggle has highlighted the need for productive investments in plant and equipment. "We have more support than ever before," he said, and is confident that next time, the bill will succeed.
The governor said that behind such highly publicized episodes as the computer problems affecting payments to Medicaid providers lies a reinvention of many state government departments: "A lot of the organization is much improved from where we found it," he said. "I see the challenge as being not just good, but the best at what we do." And he says that his administration has confronted management problems wherever they've been found. "We're certainly not sweeping anything under the carpet. It's all out there for the public to see," he said.
Like Cianchette, Baldacci also sees work on taxes, health care and energy costs as key to improving the economy. And he said he's made progress in each area. Dirigo Health, he said, "is insuring thousands of people who didn't have coverage before." By removing bad debt and charity care from hospital ledgers, which he said amounts to 20% of their budgets, Dirigo will have a major impact on future costs.
And he contrasts his administration's approach to energy with legislation just passed by Congress, which contains major subsidies for the oil, coal, gas and nuclear industries. "We're investing in solar, in wind, in alternative energy that builds the Maine economy," he said. So far as a small state can affect energy policy, "We're doing our part," he said.
Asked if he would change anything about his approach to the job, Baldacci said he would prefer to be out in public more, "at schools and forums and community events," rather than behind his State House desk. "If you tell people your story directly," he said, "it makes a big difference."
The coming campaign should allow him ˆ and the other candidates ˆ exactly that opportunity.
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