Winter worries
LePage on job policies
- State efficiency, attitudes need improvement
- Energy, education proposals teed up
Gov. Paul LePage says he got some good ideas and comments at his three job summits with employers across the state this fall, and intends to propose legislation containing short- and long-term goals to improve Maine's economy and promote job creation.
LePage said he heard consistently that energy costs, insurance costs and the regulatory climate are slowing growth. He believes health insurance costs have been addressed in legislation approved last session but not yet fully implemented.
"And it's not the regulations themselves, it's the environment, the delays and the slowness," he said. "I think [businesses] just want the process speeded up."
LePage said he told state agencies they need to improve efficiency and attitudes to help business people get the permits they need to create jobs.
On the topic of energy, LePage said he's been discussing how to get less expensive electricity from the Canadian provinces and hopes to have them bid to supply electricity through the standard offer process in the spring. Most Mainers and many small businesses get electricity through the process operated by the Public Utilities Commission. Large businesses often negotiate directly with electricity generators to purchase the power they need.
"We are going to work on natural gas, we are going to look at more efficient ways to use oil, we are going to work on (wood) pellets," LePage said. "We are going to be looking at all ways we can to reduce the costs of energy."
He said in the session that starts in January, he will submit legislation to further address insurance costs, the state's regulatory climate and energy costs.
Additionally, LePage said his administration, led by Education Commissioner Steve Bowen, will propose new standards for elementary and secondary schools, and will push the establishment of some charter schools in 2012.
LePage said schools need to do a better job of getting kids ready to work, right out of high school, in a trade or apprenticeship program or go on to higher education. He said kids who could do well in a trade are too often pushed to go to college by teachers and guidance counselors and that needs to stop.
Rep. Emily Cain, D-Orono, the House minority leader, said many of the goals LePage has laid out are shared by Democrats, but how LePage plans to achieve his goals through legislation and the state budget remains to be seen. Cain said the devil is in the details. Unlike lawmakers, who need approval from legislative leaders to introduce legislation in this session, the governor can introduce a measure at any time.
Unemployment taxes going up
- 2.3% average increase expected
- Impact will vary
Maine employers will see, on average, a slight increase in the taxes they pay to fund the state's unemployment system come January. Even the small increase has employers upset, although not surprised.
"We are looking at a very small increase, 2.3%," said Labor Commissioner Robert Winglass. "Now that is on average, with experience rating affecting an individual employer's tax rate."
The experience rating measures how much an employer has used the unemployment fund. The amount of the increase ranges from $2.40 per year per worker to $18 per worker for the year. Employers pay the tax on the first $12,000 in wages they pay each worker. The unemployment system in Maine is entirely funded by employers.
Laura Boyette, director of the Bureau of Unemployment, said the new rates will take effect Jan. 1, and employers will receive notice of changes affecting them.
Even a small increase in taxes will have a negative impact on some employers, said Peter Gore, vice president of the Maine State Chamber of Commerce. He said while the increase will have a small dollar impact on most employers, any impact can hurt.
"This is money they can't use for other things," he said, "like paying for increased health insurance costs or increased energy costs or even adding another employee."
David Clough, Maine director for the National Federation of Independent Businesses, agreed. He said with the recession lingering, the small businesses he represents expected some sort of increase and are thankful it was small.
"This is like a pinch to the arm and not a punch to the shoulder," he said. "There are a lot of other states where employers are getting hit really hard."
Gore said keeping the fund healthy requires stronger policing of fraud and abuse of the system.
"There have been bona fide job offers made to recipients of unemployment insurance, and those job offers have been refused because the person has indicated they think they could do better staying on unemployment insurance," he said. "Based on what I am hearing, this will be an issue before the Legislature when they are in session in January."
Delegation supports extending jobless benefits
- Battle in Congress expected
- Proposals offer different caps, costs
Nearly 4,000 Mainers will run out of unemployment benefits next month, and the number will grow to over 17,000 if Congress does not extend benefits. Members of Maine's congressional delegation say it will be a battle to get an extension approved by the end of December.
"We hope Congress acts and acts soon," said Labor Commissioner Robert Winglass. "We are sending out notices to those who will be exhausting their benefits."
He said the labor department is bracing for an increase in out-of-work Mainers seeking jobs before their benefits run out. He urges employers with openings to contact the DOL career centers to list those jobs.
U.S. Sen. Olympia Snowe said talks have been under way on the structure of an extension and how to pay for it.
"Hopefully there is a way of paying for it, and that is just one of the issues that will come before Congress in the remaining weeks of this session," she said.
Snowe has supported extensions in the past, even when the cost was not fully offset, but the current cost of extending the federal unemployment benefits is estimated at $45 billion. Another measure under consideration would tie an extension to a bail-out for states that borrowed to pay unemployment benefits (Maine was not among them). The estimated cost is $7 billion.
U.S. Rep. Mike Michaud said he will push to have an extension passed before the end of the month. He said extending benefits should not be confused with needed efforts to stimulate economic growth.
"There has been very little job growth," he said. "Part of it is because Congress has not been able to get its act together."
One measure in the House would extend benefits through 2012 but keep the cap of 99 weeks of benefits. There are also proposals to extend benefits for less than a year, including one by President Obama to extend benefits for 26 weeks.
U.S. Sen. Susan Collins said with the economy still sputtering, the unemployment safety net needs to be maintained.
U.S. Rep. Chellie Pingree said she wants Congress to act swiftly to avoid a repeat of last year, when Congress failed to act and then restored benefits retroactively. She said a disruption in benefits would cause serious problems for families that are already having difficulty providing food, shelter and warmth in a Maine winter.
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