January 15, 2007
The new guy | John Richardson, Baldacci's new DECD pick, makes small businesses a priority
By Taylor Smith
Last month, Gov. John Baldacci nominated John Richardson, a former Democratic state representative from Brunswick, to replace Jack Cashman as commissioner of Maine's Department of Economic and Community Development. Richardson's confirmation appears all but sealed, with widespread legislative support for his nomination. (The state Senate was scheduled to vote on Richardson's nomination Jan. 16.) Supporters say Richardson will be a capable leader of the agency that oversees state efforts in tourism, innovation and international trade, among other things.
But Richardson inherits a potentially very different organization than the one run since 2003 by Cashman, who is expected to take an economic-advising job inside the governor's office. Earlier this month, as part of his newly drafted budget, Baldacci announced plans to combine DECD with the Department of Professional and Financial Regulation ˆ the agency in charge of making and enforcing
Maine's business regulations ˆ to form the Department of Commerce. Provided the governor's budget receives legislative approval, the new department would be headed by Richardson and would likely launch sometime this summer.
Richardson, who'll run the DECD until the Department of Commerce is formed, likes the proposed changes, saying they would help streamline state government. On a practical level, Richardson sees the development of the Department of Commerce as a way to be more responsive to Maine's business community, with the same commissioner able to listen to and address complaints pertaining to state regulations. "There's economic development and business regulation under one roof, and there's a certain synergy that seems appropriate," Richardson says.
Regardless how the new department will function, Richardson's expected tenure as commissioner will begin in a very different economic environment than Cashman's, which started following a 2003 Great Northern Paper bankruptcy that devastated the Millinocket region. Cashman and Richardson both give high marks to the current state of Maine's economy, citing reasons ranging from a more diversified corporate community to steadily lower unemployment figures. "I think the economy is in better shape today than it's probably ever been," says Cashman.
Not everybody shares that rosy economic outlook, however. The Maine Heritage Policy Center, a conservative think tank in Portland, complained in a recent report that a disproportionate amount of the state's income growth ˆ touted by Baldacci in his inaugural address ˆ is funded by government rather than private industry, a trend it labeled as "disturbing." Then there are the perennial complaints about Maine's high tax burden and stifling regulatory environment, laments that threaten to dog Richardson is his role as cheerleader-cum-salesman for the state's economy.
Climate change
Cashman's tenure as DECD commissioner was marked by high-profile mill closures and layoffs, resulting in a workload that was more reactive than proactive. It was the highly publicized, drawn-out negotiations with Georgia-Pacific to find a buyer for the Atlanta-based company's mill in Old Town that sapped Cashman's desire for another four years at DECD.
While a deal to transfer ownership of the mill was finally completed in November after nearly eight months, Cashman says the negotiations ˆ some of which Richardson participated in ˆ were "by far the most unpleasant" of his tenure. "It almost killed me," he says. "I might have signed on for four more years if it hadn't been for that."
It's Richardson's hope that his leadership at the Department of Commerce will be more proactive. "We seem to have righted the ship to some degree," he says. "Now, it's about how we move forward."
Richardson's economic development blueprint jibes with recommendations outlined in the Brookings Institution report released this fall. For example, the report, which has been heavily parsed by politicians and economy watchers, champions the development of industry clusters ˆ a strength-in-numbers strategy designed to boost the fortunes of individual businesses, which in Maine could range from boat builders to specialty-food producers. That approach will pay dividends down the road, Richardson argues, as will state funding of research-and-development efforts, whether they're tied to high-tech initiatives or old-line industries.
Even though much of Cashman's time was spent negotiating deals to reopen mills and manufacturing facilities, Richardson insists he has an optimistic view of Maine's old-economy struggles. For example, he says the pulp-and-paper industry has already hit bottom, and could even rebound in coming years. Still, he knows Maine isn't immune to another mill shutdown or the overseas migration of manufacturing jobs.
Richardson hopes to devote more time and energy to Maine's small businesses. "I know Jack has an interest in fostering small business in the state, but the reality is that [DECD] is a small department," Richardson says. "As a result, those limited resources were used to take care of those crises that were on the horizon. Now that things have improved, I can see a greater emphasis on small businesses."
That's good news to David Clough, the state director of the National Federation of Independent Business, who is a strong endorser of Richardson. "You can never have enough people inside state government or in the corners of power in Augusta speaking up for small businesses," he says.
Still, Richardson will have to guide a department that, in its current incarnation, has been beset by a lack of funding; Cashman says his job was made more difficult by Maine's inability to fund international trade bureaus in foreign countries, or send delegates to conferences to tout Maine's burgeoning biotechnology industry. Richardson admits that financial resources will be a concern, especially considering that a number of recommendations from the Brookings report, such as increased R&D and education spending, require big cash outlays ˆ the kind the Maine Legislature has mostly rejected in recent years.
"It's going to be a tough job," says Richardson. "But if the Legislature wants to follow the recommendations of the Brookings report, then a reconsideration of the funding to achieve that goal is going to be necessary."
But Richardson inherits a potentially very different organization than the one run since 2003 by Cashman, who is expected to take an economic-advising job inside the governor's office. Earlier this month, as part of his newly drafted budget, Baldacci announced plans to combine DECD with the Department of Professional and Financial Regulation ˆ the agency in charge of making and enforcing
Maine's business regulations ˆ to form the Department of Commerce. Provided the governor's budget receives legislative approval, the new department would be headed by Richardson and would likely launch sometime this summer.
Richardson, who'll run the DECD until the Department of Commerce is formed, likes the proposed changes, saying they would help streamline state government. On a practical level, Richardson sees the development of the Department of Commerce as a way to be more responsive to Maine's business community, with the same commissioner able to listen to and address complaints pertaining to state regulations. "There's economic development and business regulation under one roof, and there's a certain synergy that seems appropriate," Richardson says.
Regardless how the new department will function, Richardson's expected tenure as commissioner will begin in a very different economic environment than Cashman's, which started following a 2003 Great Northern Paper bankruptcy that devastated the Millinocket region. Cashman and Richardson both give high marks to the current state of Maine's economy, citing reasons ranging from a more diversified corporate community to steadily lower unemployment figures. "I think the economy is in better shape today than it's probably ever been," says Cashman.
Not everybody shares that rosy economic outlook, however. The Maine Heritage Policy Center, a conservative think tank in Portland, complained in a recent report that a disproportionate amount of the state's income growth ˆ touted by Baldacci in his inaugural address ˆ is funded by government rather than private industry, a trend it labeled as "disturbing." Then there are the perennial complaints about Maine's high tax burden and stifling regulatory environment, laments that threaten to dog Richardson is his role as cheerleader-cum-salesman for the state's economy.
Climate change
Cashman's tenure as DECD commissioner was marked by high-profile mill closures and layoffs, resulting in a workload that was more reactive than proactive. It was the highly publicized, drawn-out negotiations with Georgia-Pacific to find a buyer for the Atlanta-based company's mill in Old Town that sapped Cashman's desire for another four years at DECD.
While a deal to transfer ownership of the mill was finally completed in November after nearly eight months, Cashman says the negotiations ˆ some of which Richardson participated in ˆ were "by far the most unpleasant" of his tenure. "It almost killed me," he says. "I might have signed on for four more years if it hadn't been for that."
It's Richardson's hope that his leadership at the Department of Commerce will be more proactive. "We seem to have righted the ship to some degree," he says. "Now, it's about how we move forward."
Richardson's economic development blueprint jibes with recommendations outlined in the Brookings Institution report released this fall. For example, the report, which has been heavily parsed by politicians and economy watchers, champions the development of industry clusters ˆ a strength-in-numbers strategy designed to boost the fortunes of individual businesses, which in Maine could range from boat builders to specialty-food producers. That approach will pay dividends down the road, Richardson argues, as will state funding of research-and-development efforts, whether they're tied to high-tech initiatives or old-line industries.
Even though much of Cashman's time was spent negotiating deals to reopen mills and manufacturing facilities, Richardson insists he has an optimistic view of Maine's old-economy struggles. For example, he says the pulp-and-paper industry has already hit bottom, and could even rebound in coming years. Still, he knows Maine isn't immune to another mill shutdown or the overseas migration of manufacturing jobs.
Richardson hopes to devote more time and energy to Maine's small businesses. "I know Jack has an interest in fostering small business in the state, but the reality is that [DECD] is a small department," Richardson says. "As a result, those limited resources were used to take care of those crises that were on the horizon. Now that things have improved, I can see a greater emphasis on small businesses."
That's good news to David Clough, the state director of the National Federation of Independent Business, who is a strong endorser of Richardson. "You can never have enough people inside state government or in the corners of power in Augusta speaking up for small businesses," he says.
Still, Richardson will have to guide a department that, in its current incarnation, has been beset by a lack of funding; Cashman says his job was made more difficult by Maine's inability to fund international trade bureaus in foreign countries, or send delegates to conferences to tout Maine's burgeoning biotechnology industry. Richardson admits that financial resources will be a concern, especially considering that a number of recommendations from the Brookings report, such as increased R&D and education spending, require big cash outlays ˆ the kind the Maine Legislature has mostly rejected in recent years.
"It's going to be a tough job," says Richardson. "But if the Legislature wants to follow the recommendations of the Brookings report, then a reconsideration of the funding to achieve that goal is going to be necessary."
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