January 21, 2013
Groups react to $6.2B LePage budget plan
By Matt Dodge
Gov. Paul LePage released his two-year, $6.2 billion budget proposal in early January, garnering a mixed reaction from business and municipal groups throughout the state.
- Maine Manufacturing Extension Partnership Chairman Bruce Pulkkinen applauded the effort for its funding to support manufacturing assistance. MEP's funding from the state remained flat as part of the budget, coming in around $429,000. Representing one of Maine's largest industry sectors with $5.9 billion in revenues in 2011, manufacturing is vital to Maine's economic future, says Pulkkinen. "The funding included in this budget will enable us to continue efforts to improve the competitiveness and productivity of Maine firms so that they can compete in a global economy."
- Janine Bisaillon-Cary, president of Maine International Trade Center, says her organization was happy with its flat funding of $517,000 and lauds the budget's focus on export trade development and business attraction efforts. "His support in this budget will truly help Maine's manufacturers and small and medium-sized businesses maintain and grow their export sales in these challenging times," she says. Exports continue to be a strong point in the Maine economy, with a 24% increase from 2007-2011 and 89% growth over the past 10 years. In all, approximately 183,000 jobs in the state of Maine depend on international trade and investment.
- But not everyone likes LePage's proposed budget, which includes controversial measures to protect $400 million in income tax cuts passed by the Legislature in 2011, including a two-year suspension of state aid to cities and towns. The Maine Municipal Association says suspension of the 40-year-old municipal revenue sharing program would have a $420 million impact for towns, reducing local services and increasing property tax rates. "The governor's proposal delivers a double whammy to all property taxpayers in this state by first jacking up the property tax rate in a variety of ways and then eviscerating the programs that are designed to help people who are having trouble paying their property taxes," wrote Geoffrey Herman, MMA's director of state and federal relations.
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