Five bond proposals that would make needed investments in Maine’s roads and bridges, colleges and universities, research and development, land conservation, and waste water and drinking water treatment passed the legislature in May. The House and Senate gave two-thirds majority votes of approval to each of the proposed bonds.

“A jobs bond will give our economy a much needed shot in the arm,” said Rep. Emily Cain, the House Minority leader. “The best way to improve our economy is by making more investments that will help small businesses, job training and public education.”

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Maine State Capitol photo by Ramona du Houx

“While the health care jobs have been an economic driver over the course of the recent recession, the state’s efforts to reduce spending on social services, especially Medicaid, may reduce future growth prospects for that sector,” wrote Moody’s Investor Services, Maine’s credit rating agency, in a press release.

This was one reason why Moody’s dropped Maine’s bond rating to AA negative from AA positive. The agency said the negative outlook “reflects Maine’s recurring challenges on the spending side of its budget, primarily in the Department of Health and Human Services, which includes Medicaid.”

Some economists have said that the downgrade is a warning to the state to review policies that might endanger job growth. From 2002 to 2010 job growth occurred mainly in healthcare, manufacturing and innovation sectors.

Moody’s also saw problems with the lack of funds in the state’s rainy day fund— the minimal budget stabilization fund balances. The agency sited a, “weak general fund liquidity position reflecting the lack of reserves.”

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In a vote of 75-63, the Republican-held Maine House voted Tuesday to give final passage to a bill that ratchets down Maine’s income tax rate by using one-time money to make ongoing cuts.

“We’ve heard loud and clear from the credit agencies that this bill puts Maine’s credit rating at risk,” said Rep. Seth Berry, who has opposed the TABOR like measure that threatens funding for schools and towns across the state. “This is nothing short of an unfair and unfunded tax shift onto middle class families who are already paying enough in property taxes.”

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Maine State Capitol photo by Ramona du Houx

Four bond proposals that would make needed investments in Maine’s colleges and universities, research and development, land conservation, and waste water and drinking water treatment gained initial support in the Maine House late this afternoon. Additional votes on these proposals and other public investments in improving roads and bridges are expected tonight.

Democrats urged strong support for the total $95.6 million in bond proposals before the House and Senate.

“A jobs bond will give our economy a much needed shot in the arm,” said Rep. Emily Cain, the House Democratic leader. “The best way to improve our economy is by making more investments that will help small businesses, job training and public education.”

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The Maine Senate through “indefinite postponement” rejected a controversial overhaul of regulatory land-use rules, known as the “takings” bill. If passed, LD 1810 would have allowed property owners to initiate action without going through a permitting process. There would be major uncertainty about how to determine what constitutes “suitable” use upon which a claim can be made.This Republican ideologically led measure would have opened flood gates for lawsuits and pit landowners against taxpayers

“Thankfully the Republicans saw the light and gave up their fight on passing a measure that would have cost millions of dollars to Maine taxpayers,” said Senator Phil Bartlett. “Worse, it would have hampered future legislatures from passing laws needed to protect Maine’s economy, environment, and communities.”

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Sen. Troy Jackson said, “I never signed up to be the person who decides who lives and dies in this state, or to say ‘I’m sorry, you don’t have health care anymore.’”

In an initial vote of 74 to 69, Republican lawmakers in the Maine House of Representatives forced through budget cuts that will take away health care from more than 24,000 Maine seniors, children and working families, while also passing unfunded tax cuts for the wealthy. The vote in the Senate was 19 to 16, along party lines, too.

“The Republican budget cuts will do unnecessary harm to seniors and working families across our state,” said Rep. Peggy Rotundo, the lead Democrat on the Appropriations Committee. “No Maine family should have to choose between putting food on the table or paying for medicine.”

The proposal will close an $80 million shortfall in the Department of Health and Human Services budget.

“This budget is riddled with disingenuous savings, hidden costs, and illegal proposals,” said Rep. Mark Eves, the lead House Democrat on the Legislature’s Health and Human Services Committee.

The GOP proposal reduces access to medicine and medical care for more than 5,000 seniors; cuts Head Start early childhood education programs for 216 children and child care credits for 1,400 families; cuts funding to home visitation programs that help prevent domestic violence for 750 families in crisis; eliminates health care for 7,000 19 and 20 year olds; and reduces funding for women’s health and family planning by $400,000.

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Citizens at the State House defending the people's right for healthcare. They don't want the LePage cuts in MaineCare.

With a planned party-line budget vote today, Maine Republicans are set to take an historic action. By ratifying Governor Paul LePage’s deep cuts to important health care programs and his giant new tax breaks that mainly benefit the wealthy, they are set to make Maine’s economic policy the most ideological and extreme of any state in the nation.

“The Republicans’ actions today are both ideologically extreme and morally reprehensible,” said Maine People’s Alliance executive director Jesse Graham. “No other state in the country has cut so deep into programs for those who are suffering the most while at the same time giving such large tax breaks to those who are the most well-off.”

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Democrats presented an alternative proposal to Gov. Paul LePage’s budget that makes the necessary adjustments to bring the budget into balance. It is responsible and prevents the harmful and risky cuts implemented in the Republican proposal.

The Democratic lawmakers proposal includes a cost-saving MaineCare restructuring initiative that will deliver more efficient health care services; a cost-saving provider-fraud recovery program, and also increases funding for the state’s rainy day fund.

The Democratic legislators solution transfers $60 million in increased revenue re-projections from 2012 and 2013 budgets to help close the gap. They also provide approximately $28 million in savings initiatives, including a provider fraud recovery savings of $5 million, salary savings of $1 million, a MaineCare restructuring task force that projects a savings of $10 million, approximately $8 million in revenue transfers from other accounts, the restructuring of Health and Human Services, and other additional items.

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The New Balance shoes manufactured in Skhowegan that Michaud gave to Pres. Obama

Congressman Mike Michaud, Chairman of the House Trade Working Group, yesterday sent a letter signed by 18 of his colleagues urging U.S. Trade Representative Ron Kirk to maintain existing tariffs on footwear imports in the Trans-Pacific Partnership (TPP) to ensure American companies such as New Balance can compete on a level playing field. Michaud and his colleagues sent a similar letter last year.

Vietnam, the world’s second largest footwear exporter to the U.S., is a participant in TPP negotiations and is pushing the U.S. to remove duties on footwear in the agreement. Like the footwear sector in China, Vietnam’s footwear industry benefits from government intervention, currency manipulation, and low labor standards.

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Congresswoman Chellie Pingree took to the House floor at 11 p.m. last night to vigorously defend an attack on a new fisheries management system that she says is working for Maine fishermen. Florida Republican Congressman Steve Southerland’s NOAA appropriations provision would block future expansion of the “catch shares” management system, which he said is a “tactic determined to destroy American freedom.”

Pingree vigorously defended catch shares, saying, “It’s critical for coastal communities and working waterfronts that fishermen are allowed to utilize the best management tools for their particular fishery. Catch shares may not be the best option for every fishery, but that decision should be left to the industry, the management experts, and the scientists in their region where the fishery occurs.”

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