Narrowing the field | Maine's next governor should possess the skills of a turnaround artist
Every January since 1951, the members of the Maine Chapter of Associated General Contractors of Maine have met for their annual meeting. As part of this year’s day-long program, University of Southern Maine professor Charles Colgan delivered a stark assessment of the state’s economy. Colgan outlined the impact of the recent recession on the state’s employment picture and what it means for Maine businesses in the years ahead.
From Colgan’s presentation, two data points stand out. First, Maine’s population growth over the past decade, at 44,000, is among the slowest in the country. We’re also relatively older and poorer than the rest of the country so our slow population growth suggests a lack of in-migration and decreased potential for growth.
The second key data point should worry every person concerned about the state’s future: During the past 10 years, Maine added only 56 “net” new jobs. That is right, despite the fact that we’ve expended a king’s ransom on economic development initiatives, Pine Tree Zones, research and development bonds and other investments, we ended the decade with 56 new jobs in our state of 1.3 million people. While those programs have added jobs, the reality is that net job growth has been nonexistent.
Construction industry leaders are understandably concerned about this lack of growth because our industry makes up about 12% of the state’s economy, or about $5.8 billion of Maine’s $48 billion economy. In 2007, construction industry wage rates were about 12% higher than the average of all private sector employment, at about $39,000. Unemployment in the industry is at a whopping 12.2%. In fact, according to AGC of America Chief Economist Ken Simonson, Maine has lost 3,400 construction jobs in the last 12 months. With over 12% of the state’s economy suffering like this, it is difficult to see how Maine can expect any economic recovery without a significant upturn in construction activity.
Looking ahead
It is against this troubling backdrop that AGC hosted the first debate of the 2010 gubernatorial campaign season at its annual meeting. Billed as the “Building the road to the Blaine House” debate, the event featured the leading major party candidates in a 90-minute forum. Moderated by WGAN radio’s senior political analysts and former Sens. Phil Harriman and Ethan Strimling, the event was a mix of substantive questions and “lightning round” questions that begged for yes or no answers.
The Democratic participants included: former Attorney General Steve Rowe, housing developer Rosa Scarcelli, former Conservation Commissioner Patrick McGowan, Senate President Libby Mitchell and former Commissioner of Economic and Community Development John Richardson.
The GOP contenders included: former chief of staff to Sen. Susan Collins Steve Abbott, Marden’s manager and Waterville Mayor Paul Lepage, former Husson College President Bill Beardsley, Maine & Co. CEO Matt Jacobson, businessmen Les Otten and Bruce Poliquin and state Sen. Peter Mills. Entrepreneur and lawyer Eliot Cutler was the field’s lone Independent.
Considering Colgan’s earlier presentation about the number of net new jobs created during the past decade, along with our demographic challenges, it becomes obvious that Maine needs a governor who possesses the skills of a turnaround artist, who knows that success means not only managing the business, but also crafting a plan for getting out of the hole.
It is all but guaranteed that one of the 13 participants in the debate will be Maine’s next governor. Not surprisingly, many debate questions dealt with infrastructure investment, while others addressed business competitiveness issues like the swine flu bill and tax reform. After an hour and a half, some differences among the candidates began to emerge.
Our task as voters is to determine which candidate has the skill, insight and experience to lead Maine, not only through today’s recession, but also around the corner and toward a more prosperous future. As professor Colgan reminded us, the current trend isn’t good enough.
A couple of other final thoughts. At $70,000 per year, Maine’s governor is the lowest paid in the nation. The Legislature should address this problem before it leaves town in March. Because the governor’s pay can only be adjusted for the next governor, failure to act now means we would go into 2014 without a fix. We should be mindful of the old Maine adage, “Why pay $10 and get someone who can do the job, when you can pay $5 and get someone who can’t?”
Side note: Regular readers of this column will note that the vexing regulatory morass surrounding the Maine Power Reliability Program is a frequent subject of commentary. While sitting in front of the woodstove during a storm-induced power outage earlier this week, my 4-year-old daughter exclaimed, “Daddy, we love it when the electricity works in our family.” Let’s hope the staff at the Public Utilities Commission feels the same way.
John O’Dea is executive director of Associated General Contractors of Maine. He can be reached at editorial@mainebiz.biz.
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