Baldacci sets stage for recovery
Photo/Robert M. Cook
Gov. John Baldacci addresses business leaders at the Portland Regional Chamber Eggs & Issues breakfast last week
Gov. John Baldacci knows he was not blessed with a great state economy when he first took up residence at the Blaine House in 2003 and that the state will undoubtedly remain mired in a recession when he leaves office.
But Baldacci does believe all of the work his administration and the Maine Legislature have done the last seven years to cut state government, consolidate school districts and state agencies, and move toward a clean energy future will benefit many small and large businesses.
"The foundation we've laid will allow Maine to get out of the recession and hit the ground running," Baldacci told more than 400 business and education leaders at his final Portland Regional Chamber of Commerce Eggs & Issues event last Wednesday at the Holiday Inn By The Bay.
"Energy is so critical," Baldacci said.
The governor said the state must do all it can to harness all of its natural resources and produce green, renewable energy here instead of importing foreign oil and coal. He said the combination of the state's biomass, hydro and offshore wind power point to a very bright economic future that could represent billions of dollars of new investment and thousands of new jobs.
"We have the natural world of Disneyland right here in our state," Baldacci said.
The state's push for its weatherization program -- which will make older homes, commercial and industrial buildings more energy efficient by retrofitting them with energy efficient heating and cooling systems, lights and other improvements -- will also create new jobs, he said.
When asked if he favored adding nuclear energy to the state's future energy plans, the governor replied that while he continues to be a strong proponent of offshore wind energy, "I'm willing to look at everything."
As soon as the governor finished, a fire alarm went off and forced the chamber's guests to exit the building before the fire alarm system was deactivated. Fewer than half the attendees returned.
But Baldacci said he is proud about the way he addressed some of the state's financial shortcomings when he did take office in 2003.
He recalled the state was $1 billion in debt and had to borrow $250 million just to run state government because there was not enough tax revenue to do the job.
The state budget was $5.3 billion when he entered office and it will be $5.4 billion when he leaves office, even with 1,000 fewer state employees. He said the state also provided $352 million more for public education aid for 20,000 fewer students.
Baldacci said the state went from being one of the highest taxed states in the country to around 11 or 12, and he never raised any of the state's existing broad-based taxes. He said the state income tax was actually lowered from 8.5% to 6.5% so that Maine residents who earn $250,000 or less per year would pay fewer taxes. More of the state's tax burden will be exported to tourists, he said.
One of the best things he accomplished is finding ways to consolidate state government agencies to make state government more efficient, Baldacci said. He told business leaders the state did several studies that looked at the cost of state government and all of them pointed to the same thing.
"We have too much administration. It's not rocket science," Baldacci said.
Besides the consolidation of some Maine school districts, Baldacci said his administration has pushed for running the county jails better. He said the state should also find better ways to manage its natural resources instead of going with "four different silos."
During an interview with Mainebiz following the chamber event, Baldacci said the tough fiscal decisions made during his tenure in office will allow the state to invest more money to improve its transportation infrastructure and promote more research and development.
He said he attended a jobs summit last week in Augusta with 70 business owners and many of them told him they want to embrace innovation so they can expand.
The governor said he is always pleased when he hears about small niche businesses that crop up in the greater Portland region and elsewhere during a recession. But he said it is also important for them to learn how to develop a good business plan so they can effectively market and sell their product.
"We know we're good at cooking, we know we're good with the widget, but we don't have all the other skills sets that will give our business long-term success," Baldacci said.
Baldacci said it would have been great if his time in office was not dominated by the recession that has plagued Maine and the rest of the nation.
But he also saw it as an opportunity to push for reform to make state government operate more efficiently so the state could be in a stronger position to help its citizens and business community. "In this time, we've been able to change things more than anyone else could change things," Baldacci said. "I only scratched the beginning of what we've done."
In the future, Baldacci said the state will have the money to invest in infrastructure because of the tough financial decisions that he made during his administration. "I'm proud of the work we've done."
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