AUGUSTA, Maine — In the 18th annual Measures of Growth report released Tuesday by the Maine Economic Growth Council, the state received gold stars for energy costs and international exports.
But Maine received red flags for health care costs, wellness and prevention, research and development, transportation infrastructure and 4th grade reading scores, and some of those areas have been red flags for many years.
Laurie LaChance, director of the Maine Development Foundation, the nonprofit organization that oversees the council, said the report looks at 25 specific indicators of economic growth but “no one indicator tells the whole story.”
John Butera, senior policy adviser to Gov. Paul LePage, called the report and its findings a “bold call to action.”
“This reinforces that Maine must continue to make tough decisions,” he said Tuesday as the report was formally released at the State House.
Every year, the council, whose 19 members are appointed by the governor, Senate president and House speaker, compares data in 25 areas. That data is then applied to specific benchmarks outlined by the council and a determination is made about whether there was movement toward the benchmark, away from it or whether there was no movement at all.
In the 2012 report, seven indicators moved away from benchmarks, five move toward their goals and 12 did not move substantially or at all. The results were largely the same as in last year’s study.
The latest report assigned gold stars to indicators that “exhibited exceptional performance in moving toward their benchmarks” and red flags to those that the council felt “need particular attention in order to improve.”
The gold stars went for exports, which were up 13 percent from 2010 to 2011, and for energy costs, as prices fell both in retail and industrial markets.
Butera, along with House Speaker Robert Nutting, R-Oakland, and Senate President Kevin Raye, R-Perry, pointed out that the report relies largely on data from 2009 and 2010 — before Republicans took control of the Legislature and the governor’s office.
Raye said the accomplishments of the 125th Legislature are only starting to materialize.
“I think what we’ve done will result in higher marks down the road,” he said.
Nutting agreed and highlighted the tax cuts included in the biennial budget passed last June that he said will spur economic growth.
Sen. Seth Goodall, D-Richmond, also served on the council.
“It’s important that we promote policy based on sound data that helps Mainers succeed — not ones that pick winners and losers. This report highlights the challenges of today as well as the need to prioritize our investments and policy decisions for the future.”
Among the areas for improvement were research and development expenditures and transportation infrastructure. Maine’s R&D expenditures as a percentage of gross domestic product was only 1 percent in 2008, the most recent data available. The goal is 3 percent, which would bring Maine in line with the national average. The New England average in 2007 was 4.7 percent.
Transportation infrastructure was a new indicator in the 2012 report, but the council gave it a red flag anyway.
Raye said those two categories suggest the need for a “modest” bond package that could go out to voters later this year.
In the past, governors and legislators have used the Measures of Growth report to help set policy. Sen. Chris Rector, R-Thomaston, who c0-chaired the economic growth council, said the report made it clear that lawmakers should improve in the areas of health care and education.
But the report’s value isn’t limited to elected officials. Tim Hussey of Hussey Seating Company co-chaired the council as a member of the business community.
“The information in this report keeps us focused on the big forces driving our economy,” he said. “Managing cost drivers like energy and health care while making investments in the Maine work force and the state’s innovative capacity will keep us competitive and successful into the future.”
The view the full report, visit bangordailynews.com.
Maine and economic development are not mutually inclusive. Social programs, green intiatives, welfare, occupy wall mart, democrats, well that is the state of Maine.
Ya.
A liberal socialist utopia.
More accurately, a capitalist dystopia.
Get rid of the bribery of politicians by the ultra-rich, the Super Pacs, and so on. Otherwise money will continue to concentrate at the top.
“We The People” is now “We the Billionaires and Romneys”
you fogot the Buffets and Obamas…
Has not been “We The People” for a long time, it has changed to “We the Politician” how many politicians are now millionaires?
Get rid of the environmental industry that has infiltrated every facet of our government and stifled every attempt at moving the businesses of Maine forward.
Would a fouled habitat make life in Maine the way it should be?
No.
We have too many ducks as it is.
Can you sight even one example of what you are claiming. I hear the rhetoric all of the time about this “environmental industry”. Who are they? Where do they get their power? What specific costs are respectable businesses facing that are preventing them from moving forward as you say? Please, an example would be helpful. Otherwise, I have to chalk it up to you being a low information type who was taught to point your finger at environmentalists but you never bothered to inquire into the details. Public policy requires more than bumper stickers if it is going to be effective.
I think you are just repeating the rants of the Limbaugh/Beck crowd, but I challenge you to offer up the goods.
Gold flags and Red flags. Old Gold flags of previous administrations tenure ignored. Old Red flags of previous administrations tenure emphasized and attributed to fallacious policy. The minions of Emperor PenguinI are reading tea leaves and confidently foretell and take credit for Gold flags of the future. Kevin are you sure you don’t own a Laundromat, you sure can spin.
No, but his family sure makes great mustard back in Eastport!
My closet is packed with it.
Buy it with your EBT?
The Republican spokespeople quickly disclaim the report because it is based past administrations not their stellar performance. That being the case then the gold stars on energy belong to past administrations. Kind of makes the drum Mr LePage has been beating about energy costs in Maine sound a little hollow.
Health care costs are a real concern. Mr LePage helped this situation by attacking MaineCare and depriving some of the working poor from what little coverage they had. Oh yes and he got Health Care Reform passed last year which lowered health care costs for the richest areas of the State while raising the costs for the poorest counties and assured the health insurance industry that they can now give themselves 10% rate hikes without the concern of State review. And he refuses to move forward with establishing a Health Insurance Exchange that might just increase competition.
Wellness and Prevention — Mr LePage has prohibited the expenditure of wellness and prevention funds and attempts to utilize the tobacco settlement funds for other purposes. This will surely improve our scores.
Research and development usually funded through bond issues. Can’t have those — so no R&D. Another score.
Transportation infrastructure — reduced funding last year and this year for infrastucture improvements with maybe a modest bond issue this fall for next year. Sounds like another zero in this round.
4th grade reading scores — let’s see we now can have charter schools and we should give out vouchers so the children can pick their schools and we attacked the retirement benefits encouraging teachers to retire early. Outstanding acheivements.
The Republican spokespeoples one claim to fame they quick to point out — the 200 million dollar tax break they initiated — the old trickle down theory. Got to say the 7200 net lost jobs for 2011 do not indicate much of a trickle.
Better luck next year although I am not sure how much more of your good times we can stand.
Trickle down theory?
Seems more like peeing on my back and saying it’s raining.
I also don’t know how much more of these good times I can take
Thank you!!! Great Maine State Governor Paul Lepage!!!!
But I thought Maine was open for business…The Guv’ ‘Nah even put up a sign saying so…twice…
LePage has really turned Maine’s economy around, hasn’t he ?
You can’t fix 42 years of Democratic control in one term or a couple of years. Maine is way behind the rest of the world in economic development. Way to many social programs and very little private enterprise.
Nice sound bite, now can you tell me one meaningful way this legislature and governor are righting the course on economic development? To just say the dems did it badly does not mean this crew is doing any better.
I am very involved in economic development and I have yet to see a single bill to make meaningful improvement in this area. The focus has been on red meat issues of social programs. These have nothing to do with investment. Luck, they say, is where opportunity meets preparation. We need to make investments as the preparation part of that equation. This will require taking ten minutes away from fighting the big enemy, the poor. I think it will get much better returns than putting the squeeze on the poor.
“We need to make investments” – Translation -> Give me free government money.
No, that is not how that translates. Investment has many forms. You are just to ill-informed to understand any details at all. Much investment is in loan guarantees and the sort. These are not free money but money that has to be paid back. The borrower is required to pledge all available collateral to back that up.
You rabid righties hate for hate sake. If you guys have your way, we will become completely insignificant in the world economy.
No investment in the commons = no future growth or opportunity.
For all of our sake, I hope we don’t have to learn that truth the hard way.
We’ve been “investing” for 35 years of Dem rule and it’s brought us to last in the country for business. I don’t think Maine can survive much more of this kind of help.
You are not astute enough to have a dialog with. You are just another ideologue with a bumper sticker for a platform.
You obviously are not interested in progress of any kind and know nothing about policy, or you would offer up even a single example.
Another conservative who has given up on a better tomorrow……. this is why your party will not win many election in 2012.
No, it is you who are not astute enough to have a dialog with. You continue to believe in the same policies that have made Maine last in the country for business. The only growth in Maine is government and soon that will atrophy as well since the smart, young people are leaving in droves. You refuse to see the evidence from 35 years of the Dems destroying the economy of Maine.
funny thing is the red flags have always been there. So there is no money to be made there so who cares. Gold flags on the other hand OH boy everyone wants cheaper energy for every thing they use so mmmmm well guess there is money to be made there lots of it too poltician, corporation oil companies are all over that like flies on poo
I was actually thinking about this yesterday as i saw my wife off at BIA. I wondered how Bangor could have an International Airport and have it be so small even thuogh so many flights from overseas go in and out of there and yet the thing is the size of a shoebox. I looked at all that land in front of the Airport and remembered so many buildings over at the Airport that are vacant. GE is over there. While the yukemup polititicians of this city keep cutting school budgets acrossed the state, jobs are lost at call centers all over the state and the possibility of more jobs to be lost, has anyone actually thought about growth? Wouldnt the Airport be a great place to start? Wouldnt that bring people into the area? More flights, actual stores and restaurants as well as upgraded motels in and around the airport would seem a logical choice to upgrade the city, infuse new jobs into the area and give our recessive economy the boost it needs. Almost every other airport in the country, some that dont even offer International flights, are four to five times the size of BIA….Maybe we should stop dropping tons of money down on the waterfront and for an arena that there are no people for as of yet and start considering more than aesthetic upgrades. Just a thought folks….I figure i complain enough on here, bout time i though of a solution.
Thank you Jeff. You are right, their are far too many complainers on here and not enough thinkers.
Jeff
You answered your own question.
It is a SMALL international airport. The city of Bangor has pumped money into it for years, and it still is what it is.
It just goes to show that spending public money in an effort to create jobs and economic stability is a failed practice.
If there ever is a reason for businesses to locate or expand in the airport area, private businesses with private capital will do it.
Ahh yes. The conservatives are always the first to declare everything a failure.
Private sector solutions can solve many problems. There are also as many that they cannot solve. You seem not to understand that private money will not take the risks that can bring about the biggest rewards. Government loan guarantees and bonds pave the way for private money to flow in once the early obstacles are overcome.
If your theory of economic development were to come into practice, many valued small businesses would never get started. Banks will not make loans to start-ups without government backing. It is not enough for the entrepreneur to put their own money at risk, the banks require more cover than that. Economic development is more complex than you suggest.
Examples are useful. You should know that the interstate highway system was built with public money (no private enterprise would have dared to build it.) That investment paved the way for America to become the greatest economic success in the history of the world. Without that investment, the American success story of the 20th century could not have taken place. The space program cost hundreds of millions of dollars. The R&D that it spurred has created millions of jobs and some of the most successful innovations of all time.
Get the government out of the way sounds great, but it neglects to account for the many situations that there is no private vehicle that can accomplish something as audacious as the space program that brought about the age of technology. Small thinking meets with little gains.
“While the yukemup polititicians of this city keep cutting school budgets acrossed the state”
Could you please provide a link that shows school budgets declining all across the state. School spening has gone UP faster than the rate of inflation every year for the last 10 years.
http://www.maine.gov/education/data/ppcosts/2010/geninfo2010.htm
Unfortunately student achievement has been flat at best in the face of this continuous increase in funding. Don’t you think it’s time we tried something that might actually increase student achievement. For once let’s think of the children.
It is too bad that Rep. Nutting takes a useful report and then inserts a statement about the usefulness of tax cuts. Did he not read the report? The report cites the need for a modest bond package for transportation infrastructure. This kind of government spending is required if goods are to be moved efficiently and also puts workers to work when private demand is low.
Tax cuts do not lead to economic growth. 8 years of Bush proved that.
Bonding sure doesn’t either. 8 years of Baldacci proved that. He couldn’t even pay the bills despite the Dems continued bonding.
What a big surprise !
“A bold call to action” to whom? Transportation and R & D depend upon bonding, yet the LePage administration and the legislature won’t consider them, even though the cost of capital and construction are at all time lows. We are squandering a golden opportunity; we will never be able to do as much, at so little cost, as we can today.
It is useful to look at policy through the lens of outcomes to set the best course forward. This study cites health care costs, R&D and transportation infrastructure as areas in which Maine is under-performing. Now to the policies. First, on health care policy, the governor and legislature have reduced the number of people receiving federally subsidized care. This merely passes the costs of the uninsured onto the backs of the insured, resulting in higher costs and bad marks in the study. Additionally, the one thing that will bring costs under more control, the Affordable Care Act, is being slow walked. This will likely put Maine behind the 8ball when the law goes into effect next year.
The other important policy position by the administration relates to bonding. Bonds are the way infrastructure gets built in the most cost effective way. This administration has stopped all bonding in its tracks thereby reducing the states ability to make needed investment in the infrastructure that makes our economy go. Bad roads mean higher transportation costs which makes Maine’s already tenuous situation with distribution logistics worse. Also, R&D spending by the state is abysmally low. The Maine Technology Institute and the technology development incubators are the engines for future jobs, growth and competitiveness. With Maine’s R&D spending at less than 25% of other New England states, it is little wonder we are not attracting the best new ideas and businesses.
Policies have impact. Short-sighted policies may offer political points for a few, but they come at a high price to how the state is situated in an ever more competitive world. If Maine expects to see economic growth, we must first be willing to invest in ourselves. Governor LePage and this legislature have shown their preference for gimmicks and politics. I wish Kevin Raye much luck and success in getting LePage to budge on bonding. We need these investments to survive.
Maine could be doing a lot better if only Eliot Cutler had gotten a few more votes.
yes he would of increased exports to China, only problem is it would have been Mainers jobs going to China since that is the only thing that Stooge Cutler is capable of is sending jobs to China for his cronies!
Kinda like LePage with his Canadian cronies ?
Lol…wellness and prevention ? That only applies to the wealthy in Maine….the poor have NO health insurance any more…