Energy, taxes, health care lead list of keys for future
Surveys of 1,100 Maine businesses led to a report that offers strategies to improve the economy.
AUGUSTA - Training Maine's older workers, making state business regulations more consistent and integrating immigrants into the work force are among the strategies in a report aimed at improving the state's economic fortunes.
Laurie Lachance, president and CEO of the Maine Development Foundation, and Dana Connors, president of the Maine State Chamber of Commerce, presented "Making Maine Work" on Wednesday to state officials, business leaders and others in Augusta.
The report outlines the Maine's business community's priorities for the state's next governor and Legislature. It is based on surveys of about 1,100 Maine businesses.
Businesses believe health care and energy costs, high taxes and transportation issues are stifling economic development in Maine.
Lachance said Maine's demographics mean the state must get creative to increase worker productivity and per-capita income.
"We have to fully engage older workers and value every single person who lives in Maine," she said. "We have to find a way to educate older workers. It's got to be a strategy, though, that we live -- not just give lip service to."
Along those lines, communities also need to better encourage the integration of Maine's immigrant populations in the work force.
"We have to help them help us grow," she said.
The report also offered strategies for keeping health care costs from rising so quickly.
In the 1990s, Maine's health care costs as a percentage of gross domestic product were close to the national average. 2004, they amounted to 20 percent of Maine's GDP -- the national average was 13 percent.
"We've been on a different path," Lachance said.
Taking advantage of wellness programs, maximizing the state's purchasing power and encouraging clinic visits rather than emergency care could reduce costs, she said.
The report also recommends building a liquefied natural gas terminal in Washington County, negotiating contracts with Canadian electricity suppliers and developing new energy sources, from biofuels to wind and tidal power.
Maine continues to rely too much on fossil fuels, she said: More than 80 percent of Maine homes are heated by oil and more than 85 percent of all freight is carried by trucks, she said. Maine's electricity costs are 60 percent higher than the national average.
"When those prices fluctuate, we feel it," Lachance said.
Maine's tax burden -- particularly the state income tax -- should be lowered, the report says.
Businesses don't necessarily believe state regulations are too strong, Lechance said, but they are seen as too inconsistent.
"Don't change the rules every time we turn around," Lachance said.
She also said the state needs to work harder to make the regulatory process more efficient.
"Leadership really sets the tone on this," she said.
MaineToday Media State House Writer Rebekah Metzler can be contacted at 620-7016 or at:
rmetzler@mainetoday.com
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5 COMMENTS
nikonwilly said...
Like trying to bail water from a sinking boat! All talking points without real evidence that any of these items will do one iota of good for this economy...The economy is broken and nothing has been done to actually help to fix it...all has been to simply hide or postpone the inevitable...A huge collapse! The dollar is becoming worthless, Banks are no longer a partner in your community but just another Big Business that looks out for themselves and their profit! They do not care about you!When no one is held accountable and CEO's can cheat and lie with impunity ...Good luck fixing anything.
July 29, 2010 at 4:40 AM Report abuse
fattubbo said...
"We have to find a way to educate older workers." I'm an older worker. I'm only three courses shy of a BS degree. I still am unable to find a job that's even remotely related to my chosen career field due to lack of experience or the lack of the "right" degree. In talking with experienced people who are in the field I'd like to work in, I'm told my best bet is to leave Maine. The sad thing here is that I graduated from one of the former Vocational-Technical Institutes in the early 80's. When I was looking for my first full time job back then, I was told the same thing: you need to leave Maine.
July 29, 2010 at 6:10 AM Report abuse
Biddy said...
Educating older workers is not economically feasible. That's why the private sector doesn't do it. Why would it pay to educate a 55-60 year old person at $10,000 or more per year to get maybe 10 years of employment from them and pay higher health costs? Especially when a company can hire a younger worker who is already educated for the job? Why not focus on job RETENTION so that older workers can keep the jobs they have? Changing trade policy at the Federal level to make it hard to impossible to outsource jobs would help older workers retain their jobs and finish their careers.
July 29, 2010 at 6:45 AM Report abuse
Jack_Pine said...
I read the report and it sounds as though anyone who had a seat at the table got their own agenda incorporated. For example, even though their survey of 1,000 businesses found businesses skeptical of wind power reducing energy costs, the report says that wind power should be used to "protect Mainers against price volatility." In other words, they couldn't make the statement that wind will reduce energy costs, so they say it will keep prices steady. Yes, steadily skyrocketed. But I guess they had to throw this in because two of their big contributors are First Wind and Central Maine Power, the latter who stands to benefit immensely from the $1.6 billion transmission upgrade required solely for these remotely based totally inefective subsidy-sucking sprawling wind complexes. Oh yeah. and they also say our # 1 competitive advantage is Quality of Place and the # 1 threat to it is sprawl. So why put up turbines that will sprawl over our most treaseured areas and greatly raise energy costs?
July 29, 2010 at 9:56 AM Report abuse
henryelm said...
well gee the D's tried to accomplish all of that and R's sabotaged all the efforts and just said no. They said NO to dirigo---intended to DECREASE health care cost for business. And they KEEP saying NO to ALL efforts to reduce the INCOME tax!!! Which side of the latest tax reform was the chamber on??? I found the enemy it is US!!!
July 29, 2010 at 11:33 AM Report abuse