Photo / Tim Greenway
Betsy Biemann, CEO, and Keith Bisson, president, of CEI
February 25, 2021
Mills' $111M 'Back to Work' bond proposal gets backing from business leaders
Image / Zoom screen capture
Gov. Janet Mills, in her State of the Budget address Tuesday, proposed $111 million in bonds for workforce development, broadband expansion, heritage industries innovation and child care expansion.
By Maureen Milliken
Broadband expansion, strengthening the workforce, heritage industry innovation and child care — all part of a $111 million bond proposal Gov. Janet Mills announced Tuesday — are also priorities of business leaders and owners in the state who said they are necessary to grow the state economy.
Mills said the focus shouldn't be on tax and budget cuts, but rather on strengthening the foundation of the economy, which she proposes to do with the "Back to Work" bond package. The proposal comes after Mills, last month, proposed an $8.39 billion two-year state budget that looked to find a balance between not raising taxes and helping shore up the pandemic-ravaged economy.
Mills said Tuesday that the pandemic has not changed the state's priorities, but has "underscored their importance and the importance of our investments in them."
The proposal has the backing of Coastal Enterprises Inc., a lender and business support nonprofit. In a joint statement, CEI's President Keith Bisson and CEO Betsy Biemann said, "We believe that state government has an important role to play ensuring that Maine recovers faster from the pandemic and 2020 economic downturn than it did after the Great Recession, and recovers in a way that engages all Mainers.
"To be successful Maine must invest more in a sustainable food economy, child care and broadband infrastructure, especially in rural areas, and this bond package is an important indicator of our state’s values and tremendous opportunities.”
Dana Connors, president and CEO of the Maine State Chamber of Commerce, said the proposal turns the state's Economic Recovery Committee plan "into reality and starts the state of Maine on the path of economic recovery and growth."
Biemann and Connors are both members of the committee that Mills set up in May to find both short-term and long-term solutions to the state's pandemic economic hit.
Tax relief pros and cons
Of her budget in general, Mills said, "History has shown us that we cannot cut our way to prosperity. During emergencies such as this one, people depend on us to protect children, to secure health care, to safeguard educational and career opportunities and to protect the most vulnerable of our citizens. I am not going to walk away from, or abandon, Maine families in their greatest time of need."
Reaction was mixed on whether the approach to taxing Mainers to help support those priorities should be included in the budget.
"At a time when small businesses are fragile, hearing that the governor doesn’t want to raise taxes and won’t spend more resources than the state has on hand offers confidence to business owners that they can focus on recovery and growth," said David Clough, Maine state director of the National Federal of Independent businesses.
But the Maine Center for Economic Policy and the Maine People's Alliance both said Mills and the Legislature must adjust tax laws to make them more fair for the state's low-income residents and small businesses.
“The governor is right that we cannot cut our way to prosperity," said Garrett Martin, of the Maine Center for Economic Policy. "That was the approach her predecessor took, and it failed. Until we roll back that legacy of austerity, we cannot achieve bold change for the future. We must roll back loopholes and tax cuts for the wealthiest households and businesses — many of which prospered during the pandemic — so that we can make good on our commitments to schools, communities and struggling families."
The Maine People's Alliance also released a statement that said, in part, "One in 12 Mainers is going without health coverage. Maine workers and small business owners are facing massive inequality, a difficult recovery and an uncertain future. The Legislature must act by passing a budget that more fairly taxes the wealthy, builds back our communities and meets the gravity of this moment."
Here's a look at Mills' bond proposals and what business leaders have to say about them:
Broadband expansion
Mills proposes $30 million to expand broadband across Maine, building on last year's $15 million in funding.
David Clough, NFIB: “Broadband improvements are critical to the success of Maine’s economy because if small businesses cannot connect they cannot prosper. Students would not be able to get the education and training needed to fill open jobs. NFIB’s small business owners were surveyed and quality broadband statewide is a priority.”
Courtesy / Axiom
Susan Corbett, National Digital Equity Center founder
Susan Corbett, National Digital Equity Center founder and director: "The pandemic has shown how real the digital divide is in our great state, and how important it is to ensure that every home and business has a robust broadband connection. We need to advance digital equity and inclusion by increasing access to broadband, computers and devices, and expanding digital literacy training for every Maine citizen.”
Shirley Manning, president of LCI Fiber Optic Network and Tidewater Telecom: “As the owner of several small communications companies in Maine, I truly appreciate the governor’s willingness to think creatively and work in partnership with the private sector to meet our shared goal of bringing fiber optic broadband to as many homes and business in Maine as quickly as possible.”
Workforce development
Mills proposes $25 million for equipment for Maine Career and Technical Education programs and a partnership with the community college system to trainer workers for high-growth industries.
Jeremy Payne, Maine Renewable Energy Association executive director: "It is critical that we pair clean energy development with a well-trained and growing Maine-based workforce — for too long efforts have not identified and proposed solutions to fill the holes in our workforce — we know we must bring forward answers for how we go about filling those holes including for those Mainers in today's workforce, and those entering in the future. Clear, consistent policies will allow clean energy companies to create hundreds and hundreds of jobs next year, five years from now, and a decade down the road."
Courtesy / David Daigler
David Daigler, president, Maine Community College System
David Daigler, president of the Maine Community College System: “If ever there was a time to invest in our future it is right now, and a workforce bond makes perfect sense."
Jason Judd, Educate Maine executive director: “These hands-on experiences allow Maine to expand our skilled workforce while providing students the opportunity to explore Maine companies, grow their careers, and contribute directly to our vibrant communities.”
Heritage industries innovation
Mills proposes $50 million for farmers, foresters and fishermen to increase processing infrastructure, improve access to markets and invest in innovation to modernize and add value to products grown, caught and cultured in Maine.
Patrick J. Strauch, Maine Forest Products Council executive director: “My members have invested in Maine with past support of the MTI Maine Technology Asset Fund, providing jobs and business growth in Maine’s rural economies. The opportunities for encouraging investment in emerging wood technologies and in training the workforce of today and tomorrow are imperative for a growing forest economy."
Steve Schley, FOR/Maine executive committee chair: “Investments of innovation capital, and within workforce systems expansion/development, are critical to driving success toward our goal of expanding and diversifying Maine’s rural Maine forest industry job opportunities and economy from $8.5 billion to $12 billion in the next few years.”
Photo / Tim Greenway
Chis Vickers, STARC Systems
Chris Vickers, STARC Systems president and CEO: “State support through R&D bonds and Maine Technology Institute funding has helped us develop our innovative wall containment product and quickly scale our operations. We now employ over 80 people and are one of the fastest growing manufacturing companies in the nation.”
Sascha Deri, bluShift Aerospace founder and CEO: “State and federal R&D funding has been vital to our company’s early growth, ultimately allowing us to conduct Maine's first commercial rocket launch last month. We are proud to grow our company in Maine, and we’re extremely grateful for the support we’ve received to develop our ‘Made in Maine’ launch service powered by our non-toxic bio-derived fuel.”
Curt Brown, Ready Seafood marine biologist: “The state’s support of Ready Seafood’s lobster processing plant helped us invest in equipment and infrastructure that has led directly to the development of new lobster products, new jobs and new revenue right here in Maine. Investments that support businesses like ours will support the lobster industry, help hire more Maine people, and result in a stronger economy.”
Increasing child care
Mills proposes $6 million for grants and low interest loans to renovate, expand or construct child care centers and increase the availability of child care slots, with half of the money going to underserved communities in rural areas.
Stephanie Eglinton, Maine Children’s Alliance executive director: “We know that many Maine families struggle to find child care. By investing in a child care bond, Maine can increase the number of safe, healthy and developmentally appropriate early education environments while improving access to care. Public and private support for facilities helps remove a significant ongoing cost burden for providers and allows them to pay higher salaries to educators."
Donna Karno, Early Childhood Education associate professor: "In Franklin County, like other rural parts of our state, many working parents are struggling to find quality affordable child care. As an early childhood education professor who works with many different types of child care providers, I am aware of the challenge of starting a new child care facility and making it work financially. The bond proposal provides for a critical investment in our child care infrastructure to support the opening and expansion of child care facilities that will increase access for working families, particularly in the rural parts of Maine.”
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