DOVER-FOXCROFT, Maine — A baker, a logger, a librarian and town officials were among those who shared their stories Thursday about how government regulation is choking business and community growth.
About 60 people attended Gov. Paul LePage’s “Red Tape Removal” audit at Center Theatre in Dover-Foxcroft organized by Deb Boyd, executive director of the Piscataquis Chamber of Commerce, and headed by George Gervais of the Department of Economic and Community Development. LePage did not attend the meeting.
Thursday’s session was the 11th in a series of 16 audits planned. The next one will be at 8 a.m. Friday, Jan. 14, at Sanford City Hall, sponsored by Sanford Chamber of Commerce. Gov. LePage is expected to attend.
The Land Use Regulation Commission, the Department of Environmental Protection, Efficiency Maine, Maine Revenue Services and MaineCare all took hits during the nearly two-hour session.
Jason Brochu, co-owner of Pleasant River Lumber Co. in Dover-Foxcroft, said his company had seen an uptick in the level of scrutiny and accountability from the Maine Department of Environmental Protection. He also noted an increase in fees.
“We don’t mind doing business in Maine as long as we know what the rules are and we don’t like the rules being changed out halfway through the game,” J. Maurice Bisson, certified public accountant and co-owner of Pleasant River Lumber Co., told Gervais. He said the state needs conformity and consistency in its regulations.
Rhonda Taylor, Maine Highlands Federal Credit Union president and chief executive officer, spoke about the state’s new mediation process that extends the foreclosures for consumers by at least two months. She said consumers can live in their homes for 12-14 months without making payments, during which time some residents destroy the buildings.
“I have pictures that I can show you that would blow your mind,” she told Gervais.
One property that was taken back recently had four windows left because the consumers had taken the others, plus the doors and the furnace, Taylor said. She said some consumers never attend mediation, yet the lending facility pays the mediation fees, which cannot be recouped. Those costs are passed on to other consumers, Taylor noted.
Milo Town Manager Jeff Gahagan called the state’s new building and energy code that went into effect Jan. 1 “pure evil.” He said the codes are so restrictive that there will be more vacant buildings in Maine communities and less property tax from which to operate town business.
As an example, Fred Trask of Milo said a developer wanted to open a high-tech laundromat in a commercial building Trask owns. In addition to hiring an engineer, Trask was told that he would have to either install a sprinkler system or fireproof the unit, add insulation and a ventilation system, and install three restrooms in that 1,200-square-foot space.
Attorney Erik Stumpfel of Sangerville said the new building and energy code could add about $20,000 to the cost of building a home, money that many Piscataquis County residents don’t have. In addition, renovations and additions to existing homes also will have to comply with the new codes. That means all building materials must be certified, which would prohibit people from cutting their own logs and peeling them to make a log home.
“Any home built in Maine under that code is going to look like it comes out of a New Jersey suburb,” he said.
Another state program criticized was MaineCare. George Barton, a Hospital Administrative District 4 trustee, said the state owes about $400 million in MaineCare reimbursement to hospitals. The Department of Health and Human Services negotiated a fee with hospitals for MaineCare service five years ago, but that fee has not been adjusted since then to reflect the downturn in the economy, which has left more people on MaineCare, he said.
“Right now, at Mayo Hospital, we’re losing $100,000 a week in MaineCare reimbursement,” Barton said.
Even libraries are affected by government regulations, according to Helen Fogler, librarian at the Thompson Free Library in Dover-Foxcroft. She said the state is no longer printing income tax forms, but many Piscataquis County residents do not have access to computers to download the forms, so they are calling on the library to fill that need.
Sophie Wilson, Brownville town manager, hoped LePage’s administration would look at tree growth and new firefighter regulations. She said Brownville shifts about $100,000 in taxes lost through tree growth to other property taxpayers.
Other meetings are scheduled for Jan. 18 in Androscoggin, Jan. 19 in Saco, Jan. 21 in York and Feb. 4 in Jay. For more information, contact the local Chamber of Commerce for the hosting town.