In the Jan. 1 editorial “The Baldacci Report Card,” the Bangor Daily News correctly noted Gov. John Baldacci’s superb management through tough economic times. The governor leaves office with a budget that is essentially the same dollar amount as the one he inherited in 2003, even including massive increases in K-12 education funding and energy and health care inflation. For eight years, he steadfastly held the line against raising broad-based taxes and instead worked diligently to restructure the delivery of essential programs and services.
The editorial, however, curiously neglected one of the most important parts of his legacy given the period in which he governed — his successful efforts to retain and attract jobs.
In an era when the U.S. economy has seen massive layoffs and plant closings, the Baldacci administration swiftly and consistently responded to save distressed companies in Maine. The successes at paper companies in Lincoln, Old Town, Millinocket and Baileyville have been well documented, while interventions for other businesses in Lewiston, Monmouth, Hartland and other Maine towns received less publicity.
In some of these cases, the administration worked with existing management to refinance or restructure. In other cases, the governor personally helped to market the company to new ownership. The end result was that Baldacci and his team worked constructively to retain thousands of jobs.
When MBNA was sold to Bank of America, the new owners announced their intention to reduce the company’s national work force by approximately 6,000 employees, putting hundreds of Maine jobs in jeopardy. The governor worked with Belfast officials to retain 80 percent of those jobs.
When the Base Closure and Realignment Commission recommended the closure of the Brunswick Naval Air Station, the Kittery Naval Shipyard and Defense Finance and Accounting Service Center in Limestone, the governor worked with Maine’s congressional delegation to mobilize a campaign to oppose the recommendations. The result was the reversal of two of the three pending closures, again saving thousands of jobs.
The governor also promoted policies to create new jobs in Maine. His Pine Tree Zone program helped attract thousands of jobs, often in small numbers, but often to rural Maine. For instance, one of the first Pine Tree Zone-certified businesses — MMG Insurance — added new jobs, expanded its Presque Isle headquarters and made technological investments as a result of the tax benefits it received.
The governor also successfully repealed the business equipment tax (the first repeal of a major business tax in over two decades), implemented an expedited process for permitting renewable power generation and passed the largest R&D and infrastructure investment package in Maine history.
The end result of all this work is a Maine economy that is faring better than other states in New England and across the country. As Gov. Baldacci leaves office, the national unemployment rate is 9.8 percent, while Maine’s rate is 7.3 percent — the lowest in New England. Throughout the eight years of this administration, except for a few temporary spikes, Maine maintained an unemployment rate below the national average.
The BDN is correct to point out that the past eight years have not always been easy, and John Baldacci has made his mistakes. Having governed through a period of unprecedented economic turmoil, however, it is difficult, if not impossible, to accurately judge his legacy without considering the performance of the Maine economy during his tenure. The anecdotes and figures cited above provide strong proof of Maine’s economic successes despite the tough times, and this is Gov. Baldacci’s most important legacy.
Jeremy R. Fischer served three terms in the Maine House of Representatives, where he was chairman of the Appropriations Committee. He currently practices law and resides in Portland.