Baldacci wants varied stimulus efforts
12/2/08 | 12 comments

Baldacci wants varied stimulus efforts


By Mal Leary
Capitol News Service

AUGUSTA, Maine — Gov. John Baldacci is joining most of the nation’s governors in a closed-door meeting with President-elect Barack Obama in Philadelphia today, with the economy at the top of the agenda.

“You have to have a stimulus package that is both short- and long-term,” Baldacci said in an interview. “I am going to try and focus on not only the roads and bridges and the broadband transmission work that needs to be done, but also in health and education.“

Obama announced the meeting last week at a news conference in Chicago. He worked with the National Governors Association to set up the meeting, which started with a dinner for the governors and members of his transition team last night.

“We’re going to be working very closely with governors; we are going to be working very closely with mayors of towns large and small across this country,” Obama said at the news conference. “This economic recovery plan will require their input, their participation.”

The meeting’s hosts are Democratic Gov. Ed Rendell of Pennsylvania, chairman of the National Governors Association, and Republican Gov. Jim Douglas of Vermont, the co-chairman. More than 40 governors and governors-elect are expected at the meeting.

Rendell, Douglas and leaders of the National Conference of State Legislatures held a news conference in Washington on Monday to urge swift adoption of a stimulus package. They listed increased federal funding for Medicaid, increased investments in infrastructure and increased support for unemployment benefits and the food stamp program as basics for a package.

“These investments should include a broad array of infrastructure projects including airports, bridges, highways, transit systems, ports, rails, clean water, sewers and broadband,” Rendell said.

Baldacci said he believes there needs to be a long-term recovery plan, not just a stimulus package for 2009.

He said many governors are seeking a package of short-term programs to help states weather the recession. He said more federal funds for the Medicaid program and for education should be part of a long-term plan. He said Medicaid would help states with their revenue problems while helping to maintain the “safety net” provided by the program.

“The proposals for greater federal funding for roads and bridges would help both in the short term by putting people to work, but also in the long run by doing the repairs and projects that are already planned, but which the states do not have the revenues to do on their own,” Baldacci said.

He said there also needs to be a commitment to federal investment in programs and not just the one-time stimulus measures. He said he would push for the Dirigo Health program to get a waiver for Medicaid funding, which would stabilize its funding and allow more to be covered by the plan. Under current Medicaid match rates, the state gets roughly two federal dollars for every state dollar it spends.

“We tried this with the Bush administration,” Baldacci said. “They rejected our effort but approved similar waivers for Massachusetts and Vermont. We are going to try again.”

The governor said using the premiums paid by employers and individuals to Dirigo as a match for Medicaid funding would allow the program to cover more Mainers. Enrollment is now frozen.

Employers and individuals are paying about $22 million a year in premiums and the state is providing subsidies of about $25 million through the savings offset payment, so a federal match would mean a significant expansion of the health insurance program.

With most economists saying the recession will affect state revenues at least through all of 2009, it is important that the federal government invest in long-term efforts to help state economies, Baldacci said.

“I think moving to energy independence is a way to grow our economy,” he said, “It is important that the federal government help with that effort.”

Baldacci said that could take the form of increased federal grants through programs such as the Community Development Block Grant program and increased tax credits for such alternative energy sources as wind, solar and tidal.

“We have a lot to discuss,” he said.

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Comments
12 comments on this item
On 12/2/08 at 5:24 AM, Govt2Big wrote:         Repeated separate thumbs down will cause comment to be hidden

What doesn't Baldacci understand about Dirigo being a flaming failure? The Maine voters have made a strong statement, so now he runs looking for a Federal bailout of his wasteful pet project. Let this failing program die.

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On 12/2/08 at 6:15 AM, hardworkingmom wrote:         Repeated separate thumbs down will cause comment to be hidden

I agree with Govt2Big, Baldacci needs to let go of Dirigo, and focus more on Health and Human Services programs such as Medicaid, and keep the programs that he has so graciously cut in education also. This man seems to think only of what he wants not what is best for the people of Maine, and I wish there were a way to remove him from office now before he hurts this state more. His cutting of programs is putting some of our most vulnerable citizens at risk, and setting them up to be lost and forgotten. Does he not realize that by cutting the programs he has, not only will people that need to have home providers for them possibly lose their homes because there is no revenue for respite care for the provider, therefore making the provider possibly not want to have the person in their home, so where do they go? Who knows? This is a serious problem, respite care is essential to these providers, it is a very difficult job to take care of someone who has mental health issues or MR issues. By cutting programs for education, our children are missing out on valuable things that could possibly keep them off the streets and away from drugs so that they don't end up a statistic. I think that Maine really needs to holler at this man and make him understand over and over again how the people feel, he obviously didn't get the picture when Maine voted down the drink tax referendum, so lets speak again Maine and tell this lame brain what MAINE wants, it is our state, isn't it?

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On 12/2/08 at 7:03 AM, mainermom207 wrote:         Repeated separate thumbs down will cause comment to be hidden

I hope Gov. Baldacci finally does something for Maine. Personally I have seen him not do a thing for Maine. And I hope the meeting helps our Education system and DHS for better services to those in need. Which a lot of Maine is now with little employment out there to make ends meet, yes there is employment there, but if you can hired amongst the 500 applications that pour in daily for the job! I hope more jobs will start coming to Maine and soon. Or this really will be a place for tourists and that is about it! Vacationland..

True Hardworkingmom we don't need anymore cuts in Education in my opinion. Nor in the programs that are seriously needed by the elderly and/or the children of Maine.

And as far as the Dirigo plan.. what a joke that has become! And wish Gov. Baldacci open his eyes to that. In no way is that a success for Maine at all.

I look forward to seeing if any, out come to this meeting.

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On 12/2/08 at 7:16 AM, bud55bud wrote:         Repeated separate thumbs down will cause comment to be hidden

WHY DOESN'T HE JUST TELL THE PRESIDENT THAT MAINE PEOPLE NEED THE JOBS BACK THAT POLITICS HAVE SENT OUT OF THE COUNTRY. THE ECONOMY WILL FIX ITSELF. A GOOD CHRISTMASS SHOPPING SEASON WILL BE GREAT FOR FORIGN ECONOMYS AS EVERY THING THE STORES SELL IS

MADE OUT OF THE COUNTY. JUST BRING BACK THE TEXTILE INDUSTRY AND OUR COUNTY WILL BE BOOMING AGAIN. YOUR INNER CITIES WILL BE RESTORED AS THESE JOBS WILL BRING BACK SMALL INDUSTRIES TO THE BUILDINGS AND TOWNS THAT ARE DYING. THE PEOPLE OF MAINE AND THE COUNTY DON'T NEED BLOCK GRANTS. THEY NEED THEIR JOBS BACK. OUT WITH TEMP AGENCYS AND IN WITH SECURE JOBS. LET THE EMPLOYER TRAIN THEIR WORKERS. WE JUST CANT COMPETE WITH PEOPE WHO LIVE IN PACKING CRATES OUTSIDE THE FACTORY GATES AND THAT IS WHO OUR SMART GOVERMENT EMPLOYES AND ELECTED OFFICIALS HAVE GIVEN OUR JOBS TO.------HANG ON G E WORKERS WARREN BUFFET JUST INVESTED BILLIONS IN YOUR COMPANY. HE WILL SEND YOUR JOBS ALONG WITH THE WORKERS OF DEXTER SHOE. OUR ELECTED OFFICIAL HAVE MADE IT POSSIBLE FOR HIM TO MAKE MORE MONEY THIS WAY. WHERE DO THEY EXPECTTO GET ALL THE MONEY FOR THESE PHONEY PBULIC WORKS JOBS?

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On 12/2/08 at 7:57 AM, Coolfusion wrote:         Repeated separate thumbs down will cause comment to be hidden

Free Money from the candyman. He harvests green serial paper notes off of Greenback trees and currency from thin air. It's a miracle from the Messiah. No one will ever have to pay ever again. Just put it on my tab Hank.

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On 12/2/08 at 8:43 AM, downbeat wrote:         Repeated separate thumbs down will cause comment to be hidden

Best stimulus...cut spending.. cut taxes, and let maine people get back to the work ethic that we used to have..

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On 12/2/08 at 9:20 AM, searoses wrote:         Repeated separate thumbs down will cause comment to be hidden

Coolfusion: what would you do with your tax dollars....oh that's right you don't want to pay taxes....and talk about printing green backs I think the Bush team has done that quite well the pass few years....you have to spend money to make money....and we have to get this country working again and it's not going to make some of you happy about how it done...but then again nothing makes some of you happy as I see it...

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On 12/2/08 at 9:36 AM, limlib wrote:         Repeated separate thumbs down will cause comment to be hidden

Baldacci is a NATO member............................NO ACTION TALK ONLY

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On 12/2/08 at 10:08 AM, pjramsay wrote:         Repeated separate thumbs down will cause comment to be hidden

As FDR learned, you have to spend money to get the economy back on track. This country's infrastructure is a joke. New road and bridge work could employ a million Americans. But is that enough? We still need alternative energy to get us out of OPEC's pocket. We still need trade balances to get us away from dependence on China's cheap products.

Bringing back the industries that we have lost would be inflationary - Americans don't work for fifty cents a day. The world needs a way to burn clean coal more efficiently and safely. We can build it and import the technology. The world gets cleaner and we profit from it.

Health care is a major issue. A one dollar per barrel surcharge on oil can bring in more than a billion dollars per year to help pay for health care. And next to travel and tourism, health care is the second largest employer in the world. Allow the insurance companies to bid on zip codes - the best product at the lowest price. If an area does not get an adequate bid, the government steps in and pays the difference from the oil surcharge. Everyone gets coverage, insurance companies make money and the health care industry adds to the employment rolls.

If the Big Three auto makers need a bail-out, let the banks that we gave billions to do it. Force the Big Three to freeze layoffs and plant closures for the term of the loans. No risk to the government and no additional unemployment ranks.

Maine needs to become a tax-free zone for all aircraft sales. This would increase the number of aircraft landings and take-offs and increase airport user fees and fuel sales. Imagine every new Boeing plane being delivered to Europe landing in Bangor. That's millions of dollars in fuel revenue plus hotel stays and meals. Boeing would need to build a hangar to accommodate winter deliveries and equipment storage.

Just some thoughts.........

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On 12/2/08 at 10:24 AM, baltimorean wrote:         Repeated separate thumbs down will cause comment to be hidden

pjramsay, thanks for injecting some economic sense into the discussion. America doesn't need to bring back old jobs from overseas-it would raise production costs immensely and drive up prices in general. We need to create new and innovative opportunities in fields that no other country is capable of doing.

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On 12/2/08 at 11:27 AM, yankeesfan wrote:         Repeated separate thumbs down will cause comment to be hidden

For those of you lucky enough to have health care coverage through your employment, I am envious and I congratulate you for being so lucky. I come from a sole proprietor, self-employed business. I don't have any other options then Dirigo. We pay high premiums and we have a high deductible. One member of my family has suffered three heart attacks and this is all we can get-Dirigo. Everyone thinks Dirigo is a hand out to us, it's not. We probably pay higher rates than most of you out there. Not only do we pay high premiums but we are also forced to add any employees we may have and we have to pay 60% of their premium. Small businesses struggle to get by and Dirigo is not a hand out. If it was not for Dirigo, we would not have any health coverage for our family.

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On 12/2/08 at 11:54 AM, anne_of_mdi wrote:         Repeated separate thumbs down will cause comment to be hidden

The people who receive health insurance as a fringe benefit are also on a sinking ship. Employers won't be able to afford it much longer. The employee contribution portions are getting higher and higher and so are the deductibles with no end in sight. It's not a matter of "if" for these folks, it's a matter of when.

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