For nearly two years, Maine’s governor has supported businesses by way of choosing smart policies, making strategic investments and changing attitudes. It’s no surprise that with hard work you get results, and job creators have noticed the changes. However, some argue that Gov. Paul LePage is hurting Maine’s business climate because he has said he will not issue bonds until 2014.
“LePage’s restriction on bonds hurts businesses he claims to support” authored by Emily Shaw in the July 25 edition of the BDN failed to share all the facts. The truth is none of these projects were required to commit to any job creation. The Communities for Maine’s Future statutes, which were developed by the Democratic-controlled 124th Legislature (2008-2010), outline broad and vague criteria in evaluating proposals for funding purposes.
Maine taxpayers deserve a quality return on their investment. A careful review of the proposed projects reveals that very few will actually create new, permanent, full-time jobs. “Improving the pedestrian experience in our downtown” is secondary to creating quality job opportunities for Mainers.
Additionally, Shaw indicates that “one by one, those towns found private investors.” Again, a thorough review of the project proposals reveals that very limited private-sector monies are being injected into these projects. In some cases, nearly all of the funding for an entire project was borne by Maine taxpayers in the form of federal grants, more state grants or direct community taxpayer dollars.
Every governor has had the choice to issue bonds in a timely manner, and it is the responsibility of Maine’s chief executive to do just that. LePage has maintained that it is his intent to sell bonds, before they expire in 2015, in order to support projects that provide a return to Maine taxpayers.
It is critical that Maine rein in spending, particularly when we are spending borrowed money that must be paid back with interest by Maine taxpayers. The state is set to spend more than $100 million a year through the end of fiscal year 2013 on debt service from already-issued general obligation bonds. Additionally, Maine owes nearly $500 million to hospitals. We must pay our bills first and exhibit fiscal responsibility.
Shaw’s piece also neglects to say that the governor’s decision does not preclude communities from pursuing other funding options. While this money was secured and authorized by voters, the time in which bonds are sold has always been fluid. What the governor has said is that these communities can’t dip into the cash reserve fund to tide them over until such a time. The governor has also offered to guarantee that these loans will be issued. All he is asking communities for is a little outside-the-box thinking. The taxpayers’ pockets are not the only bank in town.
While Mainers are faced with balancing their checkbooks, the state is no different. We now have a chief executive who is not afraid to make hard decisions regarding taking out loans. The governor is committed to strategic investments that assist our job creators, and this approach helps, rather than hurts, the business community.
John Butera is the governor’s senior economic policy advisor.
Typical Tea Party gibberish. While I may agree that some of these downtown revitalization projects can be put on the back burner, some of the other bond money relates directly to improving infrastructure necessary to be in the running to lure business to Maine.
what a bunch of double talk! We voted for these bonds and we demand they be implemented immediately.
Its gonna take a long time to make up for the damage these baggers will cause. The roads are falling apart and the bridges need repair. Meanwhile our little fat embarassing emperor sits in the Blaine House fiddling while Maine goes down the tubes. On November 6th lets send a message they will hear.
yea …a smart mesg by not electing left wing nut jobs like baldy!
Is that a response? Geeez…………go back to middle school.
So Java…we don’t pay the hospitals and pave Rt. 11 in Eagle Lake again instead? How is the sand!
Uhhh……I think your response only has meaning to you? Try to elaborate a little more next time.
It is a bit rough to decipher but I think I got it. He means to imply that by issuing these bonds we must make a choice between paying our medicare bills to hospitals or re-building our infrastructure.
The last sentence I think is implying that you have your “head stuck in the sand.” Ignoring some sort of problem that he obviously thinks you don’t understand.
Thank you Tom. You obviously have a talent for piecing these puzzling incoherent statements together. You might have a future with our current guv since I think Adrienne Bennett may be taking a long vacation soon. He could use someone intelligent who can sift through his drivel and form cogent presentable thoughts…… not unlike many of his supporters who post here.
Yea, I don’t think our current Gov. would appreciated my efforts. Too much pesky logic gets in the way of his bluster.
Embarrassing? Your attitude and spelling are embarrassing. Governor LePage is the first governor in 40 years who even has come close to encouraging me to consider moving back to my home state – but then, there’d still be troglodytes such as you to endure. He knows that the private sector is the engine that drives economic growth, and that the government borrowing yet more money (which needs to be repaid with interest) does little if anything to encourage small businessmen to start a business or expand one already going. It just adds to the public debt, and that benefits no one. Live within your means, the way most people do.
Its actually false that most private business are job creators, 9 out of 10 business fail, meaning all the jobs they created are also gone.
What do you mean by “private business” ? Are you distinguishing between the public sector (government) and the private sector or are you talking about small businesses that have not issued stock and are not publicly traded?
If you are suggesting that we should look to the government to provide jobs can you tell me where the government is going to source the revenues to pay for the jobs if not from taxes generated by private economic activity?
In any event your 9 out of 10 businesses failure rate statistic is shaky at best. That statistic is an aggregated number that includes everything from a mom and pop restaurant to high tech ventures. The failure rates are significantly different across the business segments and you neglect to consider that the successful start ups create many more jobs than those lost by those that failed. Just two examples: Apple and Microsoft.
Finally, just what is your point?
My point is that that Businesses are not job creators, the consumer is the job creator.
How many employees do consumers cut a paycheck to? If you had 100 consumers and no business offering products, would they still be consumers, or would they be “prospective consumers” ?? And if they were “prospective consumers” what would they need to become consumers? Aaaah, a business to create a product for them to purchase.
Well you could actually say they cut paychecks to the employees of all the items they buy. Look I am not being anti business. They are the back bone of our economic system.
No customers —No money to cut a Check!
No business —the customer makes the product himself.
End of Story, the buck stops there!
“How many employees do consumers cut a paycheck to?” I have run a successful business for 28 years. One thing I can guarantee is that without customers there would be no business. Business owner’s do not create jobs because of tax cuts. Business owner’s create jobs to meet customer demand for goods or services. Perhaps you should introduce your idea of how and why a business functions to some of the leading business schools in our Nation. I am sure they will find your thinking unique.
Hey! I am glad that “Someones” gets it!
If this where 1776 they would be saying that you –{ can’t tax the Slave Owners} !
It amounts to the same thing!
Typically when you write a paper you make your statement in the first paragraph and support it in the body of your article. The author here asserts that “job creators have noticed changes”, presumably by creating jobs? Yet the author does not provide a single piece of evidence to support that inference. Furthermore there’s no evidence of “smart policies, stategic investment or a change of attitudes”. This is nothing more than a pro-LePage fluff piece written with the sole intention of shooting down another contributor’s article but without any evidence to support his own claims. Shaw’s piece wasn’t very good but this is no better.
There is an excellent reason the author didn’t offer any evidence of job creation in Maine. There hasn’t been any.
Senior economic advisors should listen also to what people of Maine have voted on . People have rights to see their votes mean somthing.Do think people in Maine going to believe everything the Republicaqn advisors tell Lepage . No they are not. You want outside investors to pay for schools, roads and what have you.
If Brains where Gun Powder,
Lepage wouldn’t have enough to Blow His Nose!
Balderdash. Non-governance and malfeasance.
If we totally agree with everything Mr. Butera has said in this article then that leaves only two questions. Who are these supposed job creators Mr. Butera mentions at least twice in the article? Do they actually exist or are they simply a figment of the radical right tea party’s imagination? We have been hearing about these job creators for quite a while now but they have yet to create any jobs. While we are on the subject of jobs, perhaps Mr. Butera or one of his segregates would be kind enough to tell us all just where all of these jobs are. Apparently the US Dept. of Labor hasn’t heard or seen them. They are claiming that there are less jobs in Maine today then there were the day LePage took office. The US Labor Dept. is also informing us that unemployment is on the rise here in Maine and has been since December of 2011. It has also been published that personal income in Maine is down as well. So if Maine’s unemployment is rising, Maine’s personal income is down and there are less jobs today then when Mr. LePage took office would it be safe to say Maine’s Economy is not performing well? If that is the case then it would seem that Mr. LePage isn’t getting very good advise from his economic advisors. Perhaps Mr. Butera should spend his time trying to figure out how to get Maine’s economy back on track instead of wasting his time writing opinion articles for newspapers.
There is not one piece of economic evidence with in this piece.
What does he mean “job creators have noticed?”
Are businesses hiring or growing more now that these bonds wont be issued?
Yes. However, Obama still invokes fear. Just wait until next year!
Nonsense…
Pure hypocrisy. You know if they shoe was on the other foot you’d be screaming bloody murder.
the town of norway is upset this has held back 400k from a down town building repair project…. that the town has already spent 100s of thousands on to restore the old opera house and supposedly create economic return…. while plenty of other store fronts in the area re vacant or have perpetual turnover… another build in town is currently for sale for 60k..
how many millions in supposed business will it take to create the tax revenue to pay back better part of a million bucks in public money?
The new democrat mantra is “borrow and spend”. They call it investing in Maine’s future. They never talk about how to pay the money back, presumably it will just happen. Issue the bonds they say, it will create jobs and boost the economy. Building a bridge does create some jobs and once the bridge is built, the jobs are gone. But we don’t talk about those silly details, we can always borrow some more and re-create the jobs that are lost. And we can repeat that cycle over and over until when?
LePage needs to have a fair chance, something this newspaper and the democrats in Maine have no intention of giving him. They know that he is right and will do everything in their power to destroy him and his agenda. This used to be a hard working and honest State. Now we are a bunch of welfare bums and cheats looking for our next government handout. Pathetic.
Borrow and Spend has always been a Republican Mantra.
Reagan cuts taxes and increases spending paying for it with borrowing. Bush II cuts taxes and increases spending with two unfunded wars and Medicare Part D and borrows to do it.
Since when do Republican’s have anything against borrowing money when they are in power?
Well said, Mr. Butera. I am glad to see the LePage Adminsitration eesponding to its (constant) critics with such thoughtful, well-reasoned arguments.
How does crumbling infrastructure, aged bridges, roads in poor condition, and schools being demonized by governor LaPudge translate into being business friendly?
And I suppose those crumbling roads all started crumbling when Lepage was elected. There was never a crumbling road under Baldacci, or King, right? And they spent more money each term than the previous one, and gave us significant levels of bonded debt. I suppose their plan worked just fine, right??
What a load of BS. I’m pretty sure what’s best for Maine’s businesses, towns, and citizens is NOT an unpredictable government that breaks its contracts at the last minute. What kind of message does this send to all of the private and mostly out-of-state investors that were providing matching funds for these bonds?