The news of job losses in Maine and across the country grace the front page of this paper daily. Families are wondering how they will make it through the winter. And as a state Legislature, we are gearing up for one of the hardest budget cycles in years.
Investing in jobs, a more stable energy future for Maine and ensuring that the social safety net stays intact during these challenging times will be at the heart of the Legislature’s work when it reconvenes in January. These goals, difficult during the best of times, will be made more complex in the face of the national recession and declining state revenues.
Maine is facing a budget gap of $140 million in the current budget year, and an $838 million shortfall between revenues and expenditures during the coming two years. Unlike the federal government, Maine is constitutionally bound to balance the budget.
Maine is not alone in this situation. A recent analysis by the National Conference of State Legislatures found that states will be facing a collective budget shortfall approaching $100 billion. New Hampshire is facing a shortfall in the current budget year of $250 million; equivalent to nearly 15 percent of its budget. New York will be dealing with a $12.5 billion shortfall in the coming budget year; an amount equal to 20 percent of its yearly state budget.
The federal government must take a strong role in assisting states to navigate these troubled waters.
Senate President Libby Mitchell and I have co-signed at letter with legislative leaders from around America to call on Congress to support an economic stimulus package that will support jobs in our construction, health care, education and green energy sectors.
First, Congress should support President-elect Barack Obama’s efforts to spur local economies through targeted investments in rebuilding our failing infrastructure. These investments are sorely needed in Maine, where one report recently gave a C– for the condition of Maine’s transportation infrastructure.
Investing in rebuilding Maine’s roads and bridges will put people to work. A preliminary list of projects that could be started within three to six months has already been identified by the Maine Department of Transportation. These projects could pump an estimated $221 million into the Maine economy and support nearly 7,000 jobs. Other projects — from school renovations to broadband infrastructure — could also create jobs and invest in things that position Maine well for the future.
Second, Congress should recognize that in times of economic contraction, more people are forced to turn to state governments for temporary assistance. If you lose your job, chances are, you lose your health care. It is a cruel irony that the state is now considering capping enrollment and limiting services for these services.
The Medicaid program is also a major contributor to Maine’s economy. Cutting funds for Medicaid would have wide-ranging impacts on employers as large as Eastern Maine Healthcare and as small as community providers — even our schools.
Congress should increase Medicaid funding in order to provide relief to states in the face of increased demands on public healthcare programs and to provide support for some of Maine’s largest employers.
Finally, Congress should consider the effect of unfunded mandates on the states. Congress requires the states to provide special education services for students with disabilities — and we should. However, Congress provides little assistance in paying for these services. Congress should meet its own 40-percent goal and cover part of the cost of special education funding that is borne by states and local communities.
President-elect Obama has also called for a massive investment in renewable energy, such as wind power, and green jobs. One requirement is that states must act quickly to take advantage of these funds — “use it or lose it” were Obama’s words. The Legislature must be poised to act quickly to pave the way for innovative projects to make Maine a leader in alternative energy and reduce costs for ratepayers.
I am hopeful that Barack Obama, as a former state legislator, will understand that the goals he sets for a federal economic recovery package must be met with support for stimulus at the state level. Washington, the states, and local communities must all work together to put our country on the road to recovery.
Hannah Pingree of North Haven is the Speaker of the Maine House of Representatives.