What works, what doesn't
Useful or wasteful?
Study to evaluate state programs
What constitutes economic development?
Maine has 55 economic development programs in everything from tax credits to technical assistance, and a state agency to promote the state’s economy. For the first time, there will be a comprehensive study of whether any of them are effective.
“What we are looking for — and what Maine people are looking for — is the plain, unvarnished truth with respect to these programs,” said Sen. Karl Turner (R-Cumberland) a member of the Legislature’s appropriations committee. “We have spent a lot of money and continue to spend a lot of money under the guise of economic development. We want to get our money’s worth.”
The committee supported Department of Administrative and Financial Services Commissioner Becky Wyke when she issued a request for proposals for the study, which could cost up to $150,000. The report will be turned over to the next Legislature.
The review grew out of a report from the Legislature’s Office of Program Evaluation and Government Accountability that concluded hundreds of millions of dollars are being spent on programs indentified as economic development, with no clear definition of economic development and no way to measure the effectiveness of the programs.
The OPEGA study identified more than $600 million in spending to promote economic development from 2003 to 2005, and acknowledged more related spending exists.
With so many committees and state and local agencies involved, members of the Appropriations Committee decided to place oversight of the study with Commissioner Wyke, the only member of the Governor’s cabinet who looks at the entire state budget.
“Over the years, over time, we have accumulated for whatever reason an awful lot of programs,” Wyke said. “We haven’t been particularly diligent about putting measureable outcomes attached to those programs so that we know whether or not they are working so that we can best invest our dollars.”
State spending accountability has been an issue of growing importance for lawmakers. Several years ago, lawmakers began conducting independent reviews of research and development bonds. Researchers from the University of North Carolina reviewed bonds from 2001 to 2006 and concluded they were leveraging significant additional investment, and that more bonds should be authorized to grow Maine’s economy.
Weight limits debated, again
Snowe, Collins say restrictions must be lifted
Maine truckers struggle to stay competitive
Maine’s U.S. senators are proposing a two-year pilot program that would permit trucks carrying up to 100,000 pounds to travel on federal highways whenever diesel prices are $3.50 a gallon or more. It is the latest in a series of attempts to allow heavier trucks on the interstate system in Maine.
“There has been opposition in the past,” said Sen. Susan Collins. “Unfortunately, some of these highway safety groups are trying get everyone to have a truck weight limit of only 80,000 pounds. That is the chief obstacle.”
Collins, at a news conference outside the Maine Motor Transport Association’s headquarters in Augusta, said the legislation she co-sponsored with Sen. Olympia Snowe is different from a pilot bill in the House sponsored by Rep. Michael Michaud because it is tied to diesel prices.
“We hope that will give us some more leverage,” she said. “It also allows states to opt out of participating and keep lower weights if they choose.”
Michaud said earlier this year that the safety argument, made by opponents of the highway plan, does not hold up to scrutiny. He points to a study by the Maine Department of Transportation of the benefits of greater weights on the entire interstate system in Maine.
“An in-depth study completed by the state of Maine demonstrated that raising the weight limits on the remainder of the Maine Interstate System would not only decrease crashes and save lives, but it would also save money and improve road conditions,” Michaud said.
Rep. Tom Allen is a co-sponsor of Michaud’s legislation. He said earlier this year that attempts to pass any sort of change have been defeated by a combination of opponents, not just highway safety advocates. “Frankly,” he said, “we are caught up in a nationwide battle between the truckers and the railroads.”
Truckers have no doubt an increase in truck weights on the interstate would save them a lot of money as diesel pushes $5 a gallon.
“Transporting goods on secondary roads versus the interstate in today’s modern world has put Maine in an unfortunate competitive situation,” said Brian Bouchard, president of Hampden-based H.O. Bouchard Transportation Services. “Opening the use of the complete interstate system to more productive and fuel efficient trucks is a good way to conserve fuel, help the environment and allow us to be competitive.”
Extend unemployment benefits?
Congress considers it in several bills
Maine’s delegation supports it
State officials estimate as many as 13,000 Mainers would benefit if Congress extends unemployment for an additional 13 weeks under a proposal being pushed by all of Maine’s congressional delegation.
Maine Labor Commissioner Laura Fortman hopes Congress extends benefits as it did in the recession in 2002. She said between 8,000 and 13,000 Mainers have exhausted their 26 weeks of state benefits and could use the additional help as they seek work in the slow job market.
Fortman said because DOL does not track unemployment recipients after they have exhausted their state benefits, it is difficult to estimate how many are still unemployed. She said the department was, however, able to come up with the “ball park” estimate using numbers from the 2002 extension of benefits.
For the week ending May 31, 9,189 Mainers received an average payment of $258. Benefits paid that week totaled nearly $2.4 million. Fortman said a federal extension would likely double that weekly total and help the state’s economy.
The extension could be part of the supplemental budget to fund the wars in Iraq and Afghanistan, or it could be in another measure like a second stimulus package backed by several governors, including Gov. John Baldacci.
“I think this is one of those things that you have to stay ahead of,” Baldacci said of the downturn. “I think frankly we are in the middle of it. If it is not a recession, it is pretty close to one.”
Baldacci said two areas that would help the most would be an extension of unemployment benefits and aid to those with mortgage problems. He said the state and the nation are still facing uncertain economic times and cautioned that reports of a state surplus may quickly become outdated if high energy prices continue to batter the budgets of individual Mainers.
“Even though we have had good financial reports up to this point, I think in a lot of cases it is defying gravity and it is just a matter of time before it all falls down,” Baldacci said.
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