On Thursday the Governor appeared on the MSNBC Rachael Meddow Show and talked about why he supports No on Question 1.

“In the past, I opposed gay marriage while supporting the idea of civil unions. I came to believe that this is a question of fairness and of equal protection under the law, and that a civil union is not equal to civil marriage.

“The law guarantees that Maine citizens will be treated equally under Maine’s civil marriage laws, and that is the responsibility of government. The law does not force any religion to recognize a marriage that falls outside of its beliefs. It does not require the church to perform any ceremony with which it disagrees. Instead, it reaffirms the separation of Church and State.

“This is an emotional issue that touches deeply many of our most important ideals and traditions. There are good, earnest and honest people on both sides of the question. I did not come to my decision lightly or in haste. My responsibility as Governor is to uphold the Constitution and do, as best as possible, what is right,” said Governor Baldacci. “I believe that signing the legislation was the right thing to do.”

The event marks the beginning of the NO on 1 Campaign’s Get-Out-the-Vote program with thousands of volunteers all across the state contacting family, friends and neighbors to remind them to vote NO on Question 1.

The Governor recognized the tireless work of campaign volunteers, encouraging them to continue their efforts through November 3. He also recognized several area legislators present at the event and commended them on their thoughtful deliberations of the issue.

Although unable to attend the event, State Senator Chris Rector offered the following comments, “I voted for the marriage equality bill because it was clear that my constituents supported it. I also came to believe that it was the right thing to do for the state of Maine. The law should treat all Mainers equally, it’s that simple. I hope the law the Legislature passed is upheld on Nov 3rd.”

Ray and Connie Winship, retired teachers who live in Fairfield and currently co-chair the Waterville Universalist Unitarian Church Welcoming Congregation Program said their commitment to equality began in 1993.

“We’ve been speaking out all these years and will continue to speak out because we want Maine people to know that discrimination happens and we want them to know how much it hurts the victims and their families,” said Ray Winship. “Let’s prove, once and for all, that Maine won’t discriminate,” added Connie Winship.

Bev and Sue Uhlenhake, who have a one-year-old son, are disheartened by the challenge to the marriage equality law. Both women grew up believing that marriage is the foundation of a family and want that strong foundation for their own family. She believes that the vote is all about children.

“This vote IS about my child. Marriage equality will absolutely affect him. He deserves the right to have parents who are more than legal strangers. He deserves married parents, and that’s what I’m asking my fellow citizens of Maine to make happen today. It is now time to say NO. Say NO to inequality. Say NO to discrimination. Say NO to Question 1,” said Bev Uhlenhake.

According to NO on 1 Campaign manager Jesse Connolly, the Get-Out-the-Vote effort over the next seven days will involve thousands of volunteers across the state who will talk with friends and neighbors, staff phone bank operations, and knock on doors reminding supporters to vote NO on 1 for equality and fairness for all Maine families.

“The key to winning this election is getting our supporters out to vote. This is a true grassroots effort and we continue to be overwhelmed by the level of support and energy,” said Connolly. “Mainers have dug deep, whether that’s manning extra nights at our phone banks, double shifts knocking on doors, or writing another check.”

Article I in the Maine Constitution states that “no person shall be deprived of life, liberty or property without due process of law, nor be denied the equal protection of the laws, nor be denied the enjoyment of that person’s civil rights or be discriminated against.”

An Act to End Discrimination in Civil Marriage and Affirm Religious Freedom abides by Article I.

The current law upholds Maine’s Constitution, while maintaining the integrity of all religious beliefs.

TABOR II Would Harm Maine’s Economy, Businesses, and Families —

Maine’s efforts to improve its business climate and recover from the recession would be hindered if voters adopt the proposed “Taxpayer Bill of Rights” (TABOR) that is on the ballot, according to a new report from the Center on Budget and Policy Priorities.

The New York Times wrote an editorial, The Maine Miracle, on how the state was able to lower taxes and balance the budget during the recession, the only state in the nation to do so.

Spending Limits Already in Place —

•    State spending in Maine has already fallen as a share of residents’ income over the last two decades, making TABOR unnecessary. In the last five years spending caps have been put in place for all levels of government.

•    LD 1  prevents excessive spending increases in schools, without the harmful effects of TABOR. In some areas of the state LD 1 has reduced property taxes.

•    TABOR would hinder Maine’s efforts to prepare for future downturns or unexpected fiscal challenges by reducing the amount of funds the state can reserve in its Budget Stabilization Fund.

Undoing school district mergers would cost taxpayers $37 million —

Bureaucracy. That’s where unnecessary expenses mount up with any organization. Until the school consolidation law, Maine’s school administrative district offices have been operating as bureaucracies.

Consolidation of school administrative units has always been about getting rid of antiquated, costly bureaucracies that, year after year, took funds away from educating Maine’s children.

This was money that could have improved science labs, bought books, improved athletic and arts programs, and generally improved the overall educational environment for thousands of students.

Most mergers are finalized. According to the Department of Education, in July 85 percent of the students in the state are enrolled in school systems that meet the requirements of the reorganization law. There has not been enough time to analyze cost savings.

A report by the Maine Legislature’s Office of Fiscal and Program Review said that repealing the consolidation mandate will cost the state $37 million.

Maine’s Legislature is back in session, and the work on the next two year budget has begun. The recession’s impact could be mitigated by merging agencies. Read what Governor John Baldacci has to say about these issues, President Obama and energy policies that will create jobs in the state.

Maine's Capitol

In other exclusive interviews:

Dale McCormick, Maine’s Housing director, has introduced energy efficiency plans that are saving Mainers thousands. Her work has transformed the agency and could be used on a national basis.

Senate President Libby Mitchell, a long time leader on education issues, talks about how she intends to work in bipartisan way to move the state forward during these difficult times.

Meet the man behind Maine’s budgets: Maine’s Director of Financial Services, Ryan Low speaks candidly about budgets and what the state needs in the short and long terms for growth.

The Kennebec River, many riverside communites were awarded state grants. Click photo for story.

Working with State Government can bring needed programs and grants to communities across the state. These are a few recent examples:

The Center for Maine Craft opened on I-295 where it is exhibiting works of over 300 Maine artisans.

Downtown revitalization grants can transform towns; Skowhegan is a recent example as the town is bringing more people downtown to shop.

Gov. Baldacci talks with NotifyMD's CEO Gene Ferguson about Pine Tree Zone benefits

Business news:

Companies expand because of the tax incentives offered by Pine Tree Zones and Maine’s workforce.

The Maine International Trade Center mission to Canada was a great success. International trade brings new companies to Maine, and Maine’s businesses in the global economy

Wind projects could make Maine an energy exporter. New cash incentives of up to $6,000 are now available from the Maine Public Utilities Commission for wind projects and other cash rebates are available for solar power.

Maine's leading ladies of government

Capitol News:

Session starts with women in key government positions.

Education:

New pilot program could transform high schools in New England.

The Alfond College Challenge gives $500 for all newborns in Maine.

Editorials:

John Hathaway’s answer to Maine’s Lobster conundrum.

Next Steps – how Maine can progress with consolidation efforts.

Democracy wins – how Obama’s win is a victory for Democracy.

All photos in this edition are by Ramona du Houx.

Governor John Baldacci of Maine with members of his cabinet during a budget announcement

STEP III
The $6.1 billion biennial budget – cuts could be mitigated by consolidation efforts

While many states are increasing taxes to weather the economic storm, Baldacci will not raise broad-based taxes, saying that the people of Maine are already suffering from the recession. The budget proposal for FY 2010-11 extends the majority of the budget changes included in the supplemental budget. That budget must be approved before work starts on the ’010-’011 budget.

“I have taken great care to safeguard core government functions: keeping police on the streets, maintaining the State’s ability to respond to emergencies, protecting vulnerable populations — our children, our elderly and our disabled — and limiting, when possible, the ripple impacts of necessary spending reductions on Maine’s economy,” said Governor John Baldacci.

Gov. Baldacci introduces his two year budget proposal at the Capitol in Augusta, Maine.

“We are in the midst of a national crisis, the likes of which have not been seen in a generation. Our country is mired in a recession. We are all called upon to do our part to get through this difficult time,” said the governor. “This budget I’m presenting will be difficult for all of us. But to balance our budget and prepare our State for recovery will require shared sacrifice and a commitment to work together for the greater good.”

The proposed budget for fiscal years 2010-11 will be about $200 million less than the 2008-09 two-year budget, this is the first time that a biennial budget is smaller than its predecessor.

Major proposals of the $6.1 billion two-year General Fund budget include:
• Spending reductions across State government.
• State employees with salaries of $50,000 to $89,999 will be required to contribute 5 percent of the cost of their healthcare coverage, and those earning $90,000 or more will have to contribute 10 percent of the cost.
• The elimination of 219 positions, which requires 139 layoffs and a state employee retirement incentive.
• A continuation of the current strict hiring freeze.
• Temporary 10 percent reductions in tax rebate programs, such as Circuit Breaker, the Business Equipment Tax Reimbursement Program, the Maine Tree Growth Program and State-municipal revenue sharing.
• Increased fees in the departments of Marine Resources, Inland Fisheries and Wildlife, and Conservation, to partially offset potential cuts in frontline law enforcement (total fee increases in these areas: $4.1 million); alternatively, the governor said that four different departments that encompass protecting the state’s natural resource could be merged together to form one agency with new legislation he will introduce.
• Changes to the tax code, including equalizing the taxes on smokeless tobacco, a change in business taxes that benefits Maine-based companies and a continuation of the estate tax
• Higher-education funding would be cut by 2.4 percent. At the same time OpportunityME, a program that gives rebates to students attending college, will be funded.
• Reduced funding for the public financing of gubernatorial campaigns.
• Department of Corrections changes: While some prisons are overcrowded, others have empty beds. To solve the problem, the budget proposes: to ship 118 prisoners to out-of-state facilities. “Most of these inmates have few or no family members in Maine and are serving long sentences. They’ve come to Maine to commit a crime,” said Corrections Commissioner Martin Magnusson. It costs the state $103 a day per inmate to keep them here; it would cost $66 to $70 to keep them out-of-state. And The Department of Corrections will see consolidation methods that will reduce prison beds in Warren, Machiasport, and at the Windham Correctional Center.
• A placeholder for an increase in federal support for MaineCare, the State’s Medicaid program. The Baldacci administration conservatively estimates $98.8 million in increased funding for MaineCare to be included in President-elect Obama’s economic stimulus package. The estimate is based on reports from Washington on increased funding for health care.
• The budget invests new money in childhood immunization and preparation for a possible flu pandemic, maintains eligibility in MaineCare, maintains the Red Tide monitoring program.
• Overall, the Judiciary’s budget will increase by almost $6 million per year over FY 2008-09 funding.
• The budget sets aside $1.5 million in incentive funds for municipalities that seek to consolidate service delivery and administrative functions with regional school units.

“I believe that there is great opportunity for savings for municipalities that take a more regional approach to providing administrative services. This funding will help those communities willing to consider change to use alternatives to their current way of doing business,” said the governor.

Consolidation efforts will help-

Even with help from an Obama administration in Washington, DC, there will be approaches that each state must take on their own to work through the recession. The governor said that new proposals will be forthcoming, including an energy package, and consolidation efforts.

Merging the natural resource agencies — as well as a new structure for the Department of Economic and Community Development that emphasizes a regional approach to development and eliminates too many layers of administration — will be introduced. These measures could mitigate some of the cuts proposed.

“Maine will be tested by the current national recession and other unforeseen challenges,” said Baldacci. “But a consistent, disciplined approach to spending and taxation, a smaller, more modern and more efficient government structure, and smart investments in education, research and development, health care, and economic development will usher in a new era of prosperity and strength.”

STEP II The Supplemental Budget
UPDATE– the Supplemental budget was passed quickly in Jan, 2009

Commisioners Marty Magnusson of Corrections, Ryan Low of Finance, and Sue Gendron of Education listen to the Governor explain the budget proposal.

To protect citizens, the Rainy Day Stabilization Fund was used. “Now is the time to use the reserves,” said the governor. Using $45 million, 28 percent of the Rainy Day Fund, was proposed. With uncertainty in the economy, the governor did not want to take away any more of the stabilization funds to fill the budget gap, with the probability that they may be needed in the near future.

“Reducing spending by $140 million is not an easy job; if it was we would have done it last year,” said Ryan Low, commissioner of the Department of Financial Services.

“In order to make an additional $45 million in cuts, we would have to do some very substantial reductions across state government. Using the Stabilization Fund will in fact stabilize the situation, so the Legislature can act quickly, and we can move on to the biennial budget and review new polices we will put forward.”

Leaders from both parties offered $1.6 million in cuts from their operations in this proposal, underscoring the seriousness of this measure. The governor instituted a hiring freeze, saving $1.8 million, and has not filled positions in his office.

Urgency is required by the Legislature for passage by a two-thirds vote of this measure, or the projected savings won’t happen.
“It needs to be acted on. The quicker and sooner, the better,” said Baldacci. “Every day that goes without action puts more pressure on State resources and makes it harder to balance our budget. The plan I am presenting is responsible, balanced and tough. I urge the Legislature to do its work quickly. We have more difficult challenges ahead.”

Brenda Harvey, commissioner of the Department of Human Services, agreed. “In order for us to achieve the target savings, we need to implement quickly,” she said. “We were very cognizant that the things we curtailed would not take away from people’s needs, because that would just ad to our wait list. The supplemental budget continues in the same vain; we were very surgical about where we thought the impact would be the least harmful.”

Baldacci’s proposal would continue the nearly $80 million in curtailments he made, draw $45 million from the Stabilization Fund, and use a series of cuts and returned money to come up with the remaining $29 million.

Those cuts include the elimination of 94 positions, including 40 layoffs. Most of the layoffs would occur in the state Corrections Department. Cutbacks have reduced the size of state government by 729 workers in the past five years.

The proposed bill also changes the reimbursement rate for Critical Access Hospitals and for hospital-based physicians.

Other savings initiatives include $6.4 million excess reserves from retiree health, $2 million in reduced capital expenditures, $1 million in reduced debt service, and $500,000 in reduced contracts in the Department of Corrections.

“The U.S. economy is in recession, and most states are facing serious budget challenges, many on a scale far worse than the state of Maine,” said the governor. “People are losing their jobs, they’re watching as their retirement accounts decline in value, there’s fears that things could get worse. We have great hope that with a new partner soon to be in the White House, our country will be able to quickly recover its economic strength. But for now, we must deal with declining revenues and an increased demand for government services.”
“We have a lot of hope the next president will make sure there is an F-map increase (the federal match to the state Medicaid fund for general services.) With just a one percent increase, there would be a huge difference. Governor Baldacci has asked for an increase so that some of the measures that have to be put into the governor’s next biennial budget will be mitigated,” said Harvey.

Any economic stimulus package passed by Congress would take effect too late to have an impact on the supplemental budget.

STEP 1 Curtailment

Revenues for the state have not met expectations, due to the national recession, which has forced Maine to make reductions in the ’08 budget cycle. Some states that have not been fiscally responsible are facing dramatically hard times.

“Rhode Island has $372 million shortfall; Connecticut has a $400 million shortfall. For Maine $150 million is very difficult, but we’re in a better position than neighboring states,” said Ryan Low, commissioner of the state Department of Administrative and Financial Services.

Last November Governor John Baldacci announced to first step in the administration’s plan to meet the constitutional requirements of a balanced budget. Maine cannot print money like the federal government to keep running; the state has to balance its budget by the fiscal year end, June 30. The governor’s curtailment order will cut spending by nearly $80 million to help close a shortfall in the 2007-2008 biennial budget.

The largest cuts are to the Department of Health and Human Services (DHHS), $31 million, and to the Department of Education, $28 million. Many state jobs will be left vacant to save money.

Under the restrictions of a curtailment, no programs can be eliminated, the legislative and judicial branches of state government cannot be part of the formula, new initiatives cannot be introduced, and rain day funds cannot be used.

“Curtailment is a blunt and limited tool,” said the governor. One which Baldacci is using skillfully to ensure the most vulnerable of Maine’s population are not adversely effected.

Nearly $25 million of the $31 million in cuts to the Department of Health and Human Services is not related to services or programs. They represent cuts made through accounting adjustments and payment schedules. “We’re not taking people off services,” said DHHS Commissioner Brenda Harvey.

Just by changing from biweekly to monthly paychecks, some savings will occur.

On the education side, state government has steadily been increasing funds to local schools. During the last four years, over 800 million new dollars have been invested in Maine’s school system. About one billion is spent per year in educational general-purpose aid for schools.
According to Dept. of Education spokesperson David Connerty-Marin, the amount local schools are receiving from the state remains higher than it was before Baldacci became governor. “Right now the state is funding 53 percent of local school costs,” he said, up from 43 percent when Baldacci took office.

The University of Maine System will need to cut $8 million and $3 million from the Community College System. It’s important to remember that the budget being amended originally invested approximately $533 million into the university system, Community Colleges, and Maine Maritime academy.

Virtually all State agencies will see some cuts as part of the curtailment.

State revenue forecasters predict a total of $140 million revenue shortfall in the current budget. The curtailment order represents measures that the governor was able to achieve without the consent of the Legislature and will be included in the supplemental budget.
The curtailment is the first step in a three parts in the budgets that will see Maine hopefully through the recession.

“As we worked on the details of the curtailment, I moved forward carefully to limit the direct impacts on people who need help the most — the vulnerable populations of children, people with disabilities, the elderly, and also watching out for public health, safety, and the economy,” said the governor. “We can get through these difficult times; I have great confidence in the people of Maine and the people who serve them. We will overcome these obstacles.”

Many of those questions have come to the Department of Environmental Protection (DEP) because of agency efforts to reduce air pollution through control of emissions from cars and trucks. Although the State does not require the sale of ethanol-blended gasoline, DEP has developed a web site (www.maineDEP.com) to help address the most common inquiries.

Most often heard is “what is it?” Ethanol is what is known as a “renewable fuel”, meaning that it is made from crops and materials that are not in finite supply, like oil. In gasoline, it performs as an effective octane enhancer and also serves to reduce harmful emissions.

Another common question is about performance– how use of the blended fuel can affect vehicles, motorized boats and other gasoline powered equipment. By far the vast majority of engines should not encounter any performance related problems; however, users of the fuel can expect about a 3% loss of fuel economy.

In addition, some engine/fuel system components in older (pre 1980) engines may not be compatible with ethanol. For instance, certain types of rubber used in seals and hoses may deteriorate more rapidly when exposed to ethanol blended gasoline.

For boat owners, ethanol, being a solvent, may scour fuel systems, overburden filters and breakdown certain fiberglass gas tanks. Anyone who has questions about their vehicles, boats, motorcycles, snowmobiles, ATVs, lawn and garden equipment should contact the engine manufacturer.

For more information about ethanol blended gasoline, go to www.MaineDEP.com

Governor John Baldacci of Maine speaks candidly about the future of the state and working with President Obama. He talks about upcoming budgets, energy policies, and how Maine can progress in the 21st century economy. Baldacci says that green energy technologies and innovative projects will create jobs, and cutting bureaucracy by merging agencies will help improve services for the people of Maine.

Q: Do you think President-elect Obama is capable of bringing the change he promised for America?

A: Our country and world are in extremely difficult conditions economically, and at the same time we are at war in different areas of the world. His style of leadership and his very aggressive outreach to all political quarters to unite our country, in terms of all the different politics that has gone on before him, so that we act as one, is very impressive and refreshing to me. You have to have an overall style of leadership that wants to embrace and unite to move the country and the world forward. He is that kind of leader. I have a lot of hope with him.

In terms of issues: he recognizes that in order to get our economy going again it’s not only about Wall Street, it’s about Main Street. We need to get people back to work and not just back to the kind of work that would build a bridge to nowhere.

We need innovative jobs that are sustainable for the long term. His interest in renewable energy, domestic energy independence, energy infrastructure issues and transmission, to see more electric and hybrid vehicles, and use natural and hydrogen gas, will create those jobs. He can unite the country to become independent from foreign energy sources. I think that will very greatly and enthusiastically be embraced.

In terms of being able to address the issues: His national election campaign included all 50 states. He won in the far West and in the South, which were traditionally Republican areas. There may have been a lot of people who were naysayers about his campaign; with the widespread voter registration and his insistence not to try and win at all costs. He wanted to win in a way that would unite the country. I think his policies will not only unite Maine, they will benefit the entire country. I think the ripples from this will go around the world. People look at us from nations around the world to see how we do things. They look to their future by what the United States is doing.

Q: His campaign did unite diverse people across the nation to work together. Will this approach work with Congress?

A: Congress will be the challenge. You have an institution that is resistant to change. They will have to embrace change or they better get out of the way and allow change to occur. People recognize we have a lot of serious troubles, and Congress will need to get things done that haven’t been done before. If they fall back to earmarks and take small incremental steps, dragging their feet, they won’t be realizing that we are at the bottom.
We need to change the way we do business, now. We need to become energy independent and get people back to work. We are no longer in an agrarian industrialized economy.

This is the information-technology-based economy. People need education and training, investment in research and development, and we need to get them connected to this global economy, so they can compete on a level playing field to be successful. If Congress doesn’t embrace that change agenda, then I think they should get out of the way and let the president move forward with what the people voted for him to initiate — which is this change in America. I don’t know if the institutions will be able to embrace it or if they will try and conform him to what they are doing. It’s very clear to me, with the discussions that I’ve had with him and his team, that they better embrace change. It’s not necessarily what he’s telling the country, but it’s what the country is telling him, and he intends to follow through.

President Barack Obama with Vice President Joe Biden. Obama is working with Governors to stimulate the economy and has talked extensively to Gov.Baldacci about issues.

A: You try and do what is right for the state. Because what you are doing isn’t considered stock Democratic Party politics, there is a tendency for some not to embrace what you are trying to achieve. And some Republicans, even though they agree with what you are doing, don’t accept it because it’s coming from a Democratic governor. I would not like to see that happen to President-elect Obama, because he is trying to unite the country. He’s trying to get people to work together and incorporate conservative and liberal thinking to challenges that we face. It may not be unanimous, there may not be overwhelming consensuses, but there should be bipartisan support for those kinds of approaches. I would hate to see the political parties opposite the president-elect not participate. I want him to get the full measure of the support he should have.

Q: Since you’ve been governor, there have been a number of energy initiatives; you’ve helped innovation with research and development funds, businesses with Pine Tree Zones, and established Dirigo Health. Obama has said that he wants to incorporate the best ideas of practices that are working into his agenda. Is he looking at Maine?

A: I’m encouraged by what he’s trying to do. We’ve sent in the paperwork on Maine’s wind energy potential, the energy corridor with Canada, what we’ve done with state employees and small businesses, the kind of work we’re doing now with weatherization, conservation, and transportation to his transition team.

I’ve heard that former Senator Tom Daschle, who will head up Health and Human Services, is talking about a lot of what Dirigo Health’s been working on, with cost, quality, and access, and that you have to recognize all three of those. What we’ve done on health care will also be put in a package and sent to his transition team.

Governor Baldacci swears in the 124th Legislature of Maine

A: We were the first state to purchase all renewable energy for state buildings; we purchased hybrids, increased van and car pools, have alternative work schedules, and instituted more telecommuting. There’s a lot of money that can be saved for taxpayers, and pollution that can be eliminated.

We now have companies that are building energy-efficient heat pumps; there is research going on at UM in geothermal, wind blades, offshore wind technology systems, ethanol, and wood pellets. There are a lot of things that we have been able to spur, to create economic development, which leads to good jobs for the people of Maine.

Q: You’ve taken an innovative approach to growing clusters in Maine. Could Maine be viewed as a model for the nation?

A: There is a good article in December Fortune Magazine, which advised the president-elect on how to get America more involved in world trade and look at what states like Maine are doing. They showcased how we organized the boatbuilding cluster for growth. They said: look what Maine has done, it’s clustered its strength together; it’s added research and development, and now it’s competing in the Shanghai boat show in China. States have to think like that more.

Clusters are where our strengths are naturally. Targeting economic help where our strengths are, in these clusters, boosts growth in those established areas. Leaders need to ask how they can add value to them, how they can support them while strengthening them, so they will create jobs and economies.

I think there are tremendous opportunities to build on our natural strengths and add value to our economy, creating jobs in our state.
There are a lot of things that can be gained on a national level from what we have done.

Q: Will there be more consolidation efforts announced?

A: When you look at the Brookings Report or at independent analysis that has come forward from the National Council of State Legislators, you can see where Maine stands out. They broke down the different regions of the country comparing how many people work on highways, services, and administrative positions. It’s clear, from this research, that Maine has much more administration per population than other states.

There is an administration for local government; we have over 300 administrations. We had over 252 school administration districts; we have the 16 counties that run their own administrations; state government has its own administration; then we have federal partners in the state working in small business administration, farm programs, and others. Not counting the federal people, just looking at the local school, municipalities, county, and state government, there is just too much administration.

When you are facing a budget shortfall, you cannot raise taxes because people are fed up with taxes, and you have a responsibility to abide by the law to balance the budget, it narrows the playing field. The only way I can see to continue to protect people’s healthcare and educational programs is to cut back on administration.

Take economic development teams: People in the Department of Economic and Community Development don’t need to be in rooms with people from county development, local town economic development, and federal economic development. Can’t we provide some of the resources and vision without being on top of everybody else’s back?

We have to ask: does the state really need four natural resources agencies?
There will be new proposals for the Legislature to review that can mitigate the biennial budget’s cuts that I have to put forward.
We need to be able to make the changes and sacrifices that will help the state now as well as 22 years from now.

Q: Some of those sacrifices with consolidation efforts, according to the Brookings Report, are needed and necessary for the state to be competitive and, in the long run, will make the state stronger. Would you agree?

A: I think it will actually give better services. If the right hand and the left hand are actually connected, they won’t be passing the buck. If we flatten administration at all levels, I think government at all levels will be easier, more nimble, and better able to respond. And workers will understand better the complications, difficulties and challenges of what people are going through.

We successfully merged the Department of Human Services with the Department of Behavioral and Developmental Services. One was approving programs and initiatives while the other paid for them. All too often a family would get approval from one but wouldn’t get assistance from the other. So people who needed the services the most were getting lost in the cracks, and that’s was not right.

By bringing the departments and agencies together, we eliminated commissioners, deputy commissioners, and other high-level salaries. Then the new agency realized they had to live with each other and work together. In the end, the people and families that they dealt with got what they needed and higher quality services.

It’s been a good outcome; we have fewer administration positions, saving millions of dollars every year, and most importantly it has helped individuals and families get the connections they need to get the care that they need. It works.

When you do these things, you end up with a structure that gives people better-quality services for businesses to do business, for families, and children. It benefits people by enhancing the quality of the service they need.

Q: So, isn’t this getting rid of the governmental bureaucracy people complain about?

A: Yes, but it’s a hard process, for some people don’t see they are inside a bureaucracy. When you do realize that you have to make difficult decisions, it’s hard to do. And we would rather not have to do it. It’s easier to say, ‘There is fat in someone else’s department, so you should cut over there.’ My dad used to say, ‘When you have one finger pointing over there, there are three pointing back at you.’ We all need to see what changes we need to make to better serve people and businesses, which will better serve the future of the state.

Q: And school consolidation?

A: I’ve had numerous principals of schools come up to me and say, ‘I’m going to retire in a few years; it was the right thing to do.’ They are saying it now, after the public hearings when we were roasted. But that’s what happens. Commissioner Genderon did the research. People were concerned about the loss of local control, but that’s not what happens. What they will be losing is the excess administration part of local government.

The pay scale in these administration positions is going through the roof; we simply can’t afford to pay for all of it, and we shouldn’t because at the same time we want every child to receive a world-class education. We need to make sure we are protecting their educations, not the salaries of administrators.

Q: There are 41 states experiencing budget shortfalls. How will you balance budgets?

A: There are three steps in this process: the curtailment, the ’09 supplemental budget, and the 2010-2011 biennial budget. We must act as swiftly as possible on the supplemental budget for the savings to accrue.
There are only two ways of balancing budgets after six years of cuts: you raise the fees and taxes or you cut the programs. You do one or the other or you do both. The law requires a balanced budget. I’m going to try and get through this in a way that protects our public health and safety; the state police and the services that they provide are essential and so are our education services, even though it’s a billion of the budget. I am going to make sure we don’t end up ruining future opportunities for our children. We are going to give our children the education they need for this 21st-century global economy. We will take care of core responsibilities to our children, our natural resources, and the most vulnerable in society.

The biennial budget will have a lot of difficult cuts; at the same time I’ll be putting in a separate piece of legislation that allows for government reorganization. I want people to have an opportunity to realize we could mitigate those cuts if we embrace reorganization and structural change of governmental administration. There will be an opportunity to change the way we are doing things.

There will also be an energy package, some healthcare work, tax reform and tax relief.

It’s incumbent upon us to address those four issues. People are expecting us to get this work done. My hope is to get bipartisan support for the initiatives we will be working on. We need to work together, taking into consideration everyone’s viewpoints.

Q: When you put together the package and other initiatives, do you expect help from the Federal government?

A: Hopefully, yes. We will be watching with interest what comes out of Washington in the stimulus package. I am encouraged by the talks I’ve had with the president-elect. We expect some help will be for the ’010-’011 biennial budget which we will amend, as part of the budget process. It should help us mitigate some cuts.

The impact of the global economic recession on the Maine lobster industry is no secret.

The lack of consumer demand for all luxury items, Maine lobster being the closest to our hearts, has made for devastating financial times for thousands of Maine lobstermen and for many others. These difficulties may not end soon. Therefore, it’s more important than ever for our political and industrial leaders to step forward, to work together and to lead. This economic crisis has served as a wake-up call to all who care deeply about the economic sustainability of Maine and especially our fishing communities. Times like this call for leadership and action. Times like this call for optimism and the recognition of opportunity that change can bring.

Robin Williams in Dead Poets’ Society called it “fini origine pendent” — the end depends upon the beginning. This is the new beginning for the Maine lobster industry. If politicians, lenders, and industry leaders work together, our state, our fishing communities, and our economy will be strong for the generations that follow.

Politically, Governor Baldacci is to be commended for his continued commitment to the Maine lobster industry. He showed his commitment to keeping the fishery sustainable by appointing his Working Group for Sustainable Maine Lobster last February. Maine lobster is now in “full assessment” to gain Marine Stewardship Council (MSC) certification for sustainability — a major step toward differentiating Maine lobster in the world marketplace. As well, he immediately took action when lobster prices crashed this fall and formed his Task Force on the Economic Sustainability of Maine Lobster to find long-term solutions to today’s price issues. His decisions to act were immediate and showed great leadership.

The Legislature will need to follow suit in the upcoming session. There is no doubt they will. Marine Resources Committee Chairman Dennis Damon has long been a strong advocate for the lobster industry. Likewise, committee member Sen. Nancy Sullivan, representing my hometown of Kennebunkport, has long supported the fishermen at Cape Porpoise Pier. Speaker Hannah Pingree and House chair, Rep. Leila Percy, will continue to show leadership on lobster-related issues. One only has to look back to the defeat of the “dragger bill” as proof of their understanding and commitment to Maine lobster.

Fishermen, dealers, and processors will also have to be willing to participate and work together to find workable solutions. Fishermen must come to understand that the “industry” does not stop at the wharf — it doesn’t stop until that Maine lobster gets to the consumer’s plate. In return, dealers, processors, and distributors must come to understand why Maine lobster is more than just seafood. Over 6,000 hardworking individual fishermen risk their lives and their wallets every day. No other fishery in the world compares. In no other fishery do so many individuals take so many precautions to keep their product sustainable. V-notching, trap fishing, throwing back lobsters that are too small or too large, all prove that these fishermen are proud of what they do now and are committed to making sure their children will share the same opportunities. Their dedication, their emotion, and their pride, all tell the story of Maine lobster and create the best brand in the world for the dealers, the processors, and the distributors. What a gift.

Many solutions will come forth in the next few months on how to save the Maine lobster industry and how to keep it sustainable in the future. Indeed, DECD Commissioner John Richardson has jumpstarted the process by hosting over 100 lobster industry representatives on October 15, 2008. His Report to the Governor was a strong beginning in identifying the issues that need to be addressed by the Governor’s Task Force.

Much good information is already available in the major study on the Maine lobster industry undertaken when former Executive Director Kristen Bailey was at the MLPC. This study outlines many of the issues that had not previously been articulated or even understood before then. For instance, the Maine Lobster brand is the most identifiable brand of any food in the United States. When someone asks, lobster? 65 percent of people invariably say, Maine. That’s a powerful brand.

However, up to 70 percent of Maine lobster is sent to Canada each year. Once it crosses the border, that brand identity is lost to the consumer. Bailey’s program to tag Maine lobsters with Certified Maine Lobster bracelets was a good solution. In fact, this designation is at the centerpiece of the commissioner’s report. We must differentiate. We have the world’s best brand, and we have to stop giving it away.

Further, the study showed that only 11 percent of consumers are deemed “traditionalists,” meaning they want their lobster in a shell. That leaves a lot of people who want it other ways — in value-added products, for instance. This in itself is a wake-up call for the industry.

Lobster prices are a function of supply and demand. It’s simple economics. If we can create more demand by offering consumers what they want, we can garner higher prices for the fishermen. The supply is fairly constant. We can do so by finding the true market segments for Maine lobster and by understanding where money can be made and where it can’t be made, in the worldwide marketplace. There are many smart marketing people in Maine who can figure this out pretty quickly.

Our Maine lobster industry, however, has been in need of repair long before the current global financial conditions came to pass.

While the annual catch of Maine lobster is fairly constant, it is a very seasonal business. Our competitors to the north have been working and investing for years on ways to overcome this problem. They have made huge investments in tubing operations that keep live lobsters fresh for months at a time. They have seasonal landing restrictions and large processing plants that allow them the opportunity to be the primary buyers of our soft-shell lobsters — at prices they dictate.

This must change.

While I have full confidence that the Governor’s Task Force will take a serious and thorough approach to the long-term solutions needed to keep the Maine lobster industry sustainable, I urge that our political and industrial leaders take immediate steps to offer short-term solutions to solve the “Canadian processor” issue described above. If we don’t, the Canadian processors will continue to gain market share at Maine lobster’s expense — and more rapidly so under current conditions.

More than 50 large Canadian processors are stocked full with value-added inventory. While their excess inventory may have lost some value this fall, it was not close to the financial damage suffered by Maine lobster fishermen, whose biggest customer, Canadian processors, pulled almost totally out of the Maine market, leaving our fishermen and dealers at times almost begging for buyers, as long-standing purchasing agreements were abandoned.

Now the Canadians are doing everything necessary to sell their inventory in preparation for the coming Canadian lobster season this spring. As demand rises and supply dwindles, their losses will be minimized. Most importantly, though, their customers worldwide will be assured that Canadian product will be available every day. That’s stability in the marketplace, and that is what big customers want.

In Maine, it’s a different story. We have two major processors and two smaller processes. We have innovative people running those businesses. In Portland, Cozy Harbor and Portland Shellfish continue to offer new products on the world market. Look’s Gourmet in Cutler and our own Shucks Maine Lobster in Richmond continue to offer value-added products that the 89 percent of “non-traditionalists” consumers are looking for — products that offer quality, value, and convenience.

This is what the consumer is looking for — products that offer quality, value, and convenience, especially when it comes to Maine lobster. Think about it: walk into Whole Foods and buy lettuce or fruit. Bags and bags of cut lettuce leaves of all sorts are on the shelf. Nowhere will you find a head of iceberg lettuce. There are rows and rows of sliced fresh fruit in containers. Today, no one wants to peel a pineapple. Walk in and try to buy a live chicken. Times change. The Maine lobster industry hasn’t. There are lessons to be learned in Whole Foods.

But my guess is that these four processors (and Maine dealers as well) have far less inventory than they need to meet their potential market needs in the next six months. If so, they will be forced to buy expensive Canadian product, or wait until the Maine season begins in July. When the Maine landings do come, the Maine processors will not be equipped to handle the load. Once again, the majority of Maine lobster will be sold to Canadian processors — who will dictate the price.

This cycle needs to end if Maine lobster is to prosper or even survive. Politicians and industry leaders need to start working together now. And they need to invite Maine lenders to the table. They need to invite FAME as well.

Once together, these leaders can forge the single most important solution outlined in Commissioner Richardson’s report: Create “short-term lending options” that make capital available to dealers, processors, and value-added manufacturers. What’s needed right now is capital to buy Maine lobster from Maine lobstermen so they can keep fishing, and capital for dealers to build holding facilities, and capital for processors and value-added manufacturers to buy equipment to expand output of frozen Maine lobster products. Once accomplished, Maine lobster will stay in Maine until it comes time to deliver Maine lobster to the consumer — without taking a detour to Canada — at any time of the year to any part of the globe. At that point, we will achieve an economically sustainable Maine lobster industry.

This can be done without bailouts or taxpayer money. Maine lenders have capital to lend. As the commissioner states, this can be done “by increasing the percentages of inventory eligible for financing to support Maine lobster processing capacity, particularly during peak season when inventory costs are high. Currently, banks will only finance up to 50 to 60 percent of inventory.” He’s absolutely right. Maine dealers, processors, and manufacturers know how to make products that consumers want. They know how to sell them. In peak season, they hate watching trailer trucks of Maine lobster being hauled to Canada as much as anyone does. They understand that it is the death knell.

However, in this risky economic climate, Maine lenders claim they need guarantees or credit enhancements to alleviate excessive risk. So be it.

The commissioner also correctly points out that the solution is to “explore flexible lending guidelines. FAME has the greatest flexibility underwriting loan amendment terms and condition guidelines.” FAME, given proper mission changes and authority from this Legislature, can be a quick and solid solution to today’s Maine lobster problem. If the Legislature acts quickly and responsibly, it can create a FAME solution that will immediately open up much-needed capital on this side of the wharf — a solution that will keep fishermen fishing, that will keep Maine lobster in Maine, and will keep Maine lobster lovers eating Maine lobster all year around all over the globe.

We need to act quickly before the next season is upon us. The long-term solutions will come in due time. If we work together, we can forge new opportunities immediately. This is just the beginning. But, remember, the end depends upon the beginning.

The author owns Shucks Maine Lobster, and is the chairman of the Governor’s Working Group on Sustainable Maine Lobster.

Johnny@ShucksMaine.com

]]> http://maineinsights.com/perma/the-state-of-maine-lobster-editorial-by-john-hathaway/feed 1 http://maineinsights.com/perma/high-school-education-addresses-todays-needs http://maineinsights.com/perma/high-school-education-addresses-todays-needs#comments Fri, 13 Feb 2009 23:16:49 +0000 Ramona Du Houx http://www.polarbearandco.com/NewMaineDem/?p=357

In the 21st century global economy, becoming an innovative thinker is a necessary skill for success. Secondary education needs to change to accommodate the new technology skills, interactive skills, communication skills, and workplace skills that are necessary to navigate careers that may change many times in a lifetime.

The United States is embarrassingly behind that learning curve, but Maine took a major step forward, putting the state on course with the creation of The New England Secondary School Consortium. In December, Education Commissioner Susan Gendron and Governor John Baldacci announced the partnership that is funded by a $1 million grant that will help high schools prepare students for the jobs of the global economy.

“The consortium is built in part on an agreement that, contrary to the experiences of students a century ago, the skills needed by college-bound and work-bound students are the same,” said Baldacci. “Our new partnership will bring bold, transformative innovations to the design and delivery of secondary education.”

Students at the future transformed high schools will conduct research in their communities, acquire real-world skills through challenging internships, take online and on-campus college courses, use powerful new technologies to access the world, and engage in other innovative learning opportunities both inside and outside the classroom.

“It’s about all of our education organizations working together on behalf of our students to graduate every student to be college, career, and workforce ready,” said Gendron.

New England is already known for education and Maine is known for its education institutions, like Bowdoin, Bates, Colby, and UM’s innovative expertise. The state ranks 15th in the nation for secondary education.

“If we can brand our region as an education region, that will be certainly a tremendous draw to New England,” said Baldacci. “There are areas that businesses will locate to because of an educated, skilled workforce. It’s a major factor in their decision-making process. We want our students ready to meet the needs of the 21st century, so they can succeed here in Maine. This consortium will help us reach that goal.”

“We truly would love to see Maine and New England become more attractive to businesses,” said Gendron.

According to Gendron, the consortium was discussed and agreed upon at the Governors’ Conference in Bar Harbor last autumn and has been a year in the making.

“Our workforce needs to have the skills and knowledge base to compete globally,” said Baldacci.

The New England Secondary School Consortium, consisting of Maine, Rhode Island, New Hampshire and Vermont, will review education policies, graduation requirements, and programs already in place throughout the region. Then they will implement the best practices applicable to each state.

The consortium goals call for increasing the high school graduation rate to 90 percent, decreasing the dropout rate to less than 1 percent, increasing the percentage of students who enroll in a two- or four-year college to 80 percent, reducing the need for college developmental-remedial courses to 5 percent, and ensuring that more students who enter college graduate from college.

The $1 million grant from Nellie Mae Education Foundation includes a $500,000 partnership grant from the Bill and Melinda Gates Foundation. The foundation for the grant has a history.

Carrabec High School in North Anson was chosen in 2002 to test innovative plans to reflect the learning needs of today’s students. At that time, they were one of ten schools in Maine that received a Gates Foundation grant to conduct that pilot program, which will contribute to the consortium’s implementations.

Carrabec added more college credit courses taken through the Internet, learning business and job skills, and developed a portfolio system that highlighted achievements of their student’s academic careers, equipping students with a resume to enter the job world or to apply for college. The emphasis was on learning practical skills for becoming a success in the world, while encouraging students to pursue a college degree.

The key to making the changes that worked, according to former principal Jamie Weggler, was working with the community. “We held community meetings to inform parents of our plans and to seek input,” said Weggler. “We had a student appointed to the school board, so student’s issues were heard. People involved and concerned in their student’s education came forward with ideas.”

At another pilot school, Messalonskee High School in Oakland, more than 150 college credits have been earned by students. “These students are ready for college because they have had a taste of what it is like; the program has helped to motivate them. Also their parents saved thousands of dollars on tuition costs,” said Jim Morse, superintendent of the central Maine district. “High school has to go beyond its walls for students to succeed in the 21st century; they need real educational experiences to motivate them.”

A task force of teachers, administrators, and school board members recently issued recommendations to Gendron. Some of those recommendations were a result of the work done at the ten schools that received the first pilot grant.

“We will be sharing that work,” said Gendron. “We will collect data and information, and it may help to inform the work of other states.”

The same four states recently announced a collaboration to create a common student assessment program.

The consortium also will undertake a wide-ranging examination of state learning standards, teaching strategies, assessment practices, professional-development programs, and student outcomes in relation to the highest-performing international educational systems.

During the initial 18-month phase of the multiyear effort, the participating states will conduct a comprehensive review of the rules, regulations and laws governing education.

It is hoped that the resulting policy map will lead to the development of new state and local policies aimed at stimulating educational innovation, encouraging the implementation of new models of teaching and learning, requiring personalized support for each student, and clarifying performance expectations for educators and students.

The Great Schools Partnership at the Sen. George J. Mitchell Scholarship Research Institute in Portland will coordinate the yearlong effort.