Maine's Family-Owned Businesses in Conflict with Legislature
Growing Maine's economy is quite simple: we need more money coming into the state than goes out. At the height of the summer tourism season, our gateway bridges become the perfect metaphor for encouraging vacation travelers to come, enjoy and leave their money behind - all with our unqualified and enthusiastic gratitude.
This past week, two old bridges that connect Kittery and Portsmouth made the news. They are in such poor condition that weight limits or possible closure are seriously being considered. The bridges are jointly owned by the State of Maine and the State of New Hampshire.
In the more prosperous Granite state, their Legislature said they would front the money to replace the deteriorating Memorial Bridge if Maine pledged to make up the difference when replacing the second bridge.
Their governor said they were good to go. Our governor said we'll wait and see. A study is near completion. Having thought about it, New Hampshire made a decision. But across the waters of the Piscataqua River, we're still pondering. It is emblematic of how our two states operate. We do a lot of expensive studies and take our time making decisions. New Hampshire gets enough information and acts.
The policy decisions we make, make a difference. According to the Economic Activity Index produced by the Federal Reserve Bank of Philadelphia, New Hampshire has led all the New England states since 1992. Maine, on the other hand, has been near or at the bottom for economic vitality during the same period of time. Why the difference? As one New Hampshire official told me, "The difference between Maine and New Hampshire is that New Hampshire loves business and hates government. Maine hates business and loves government."
Household median income in New Hampshire, by the way, is $20,000 greater than Maine.
In the same week that we heard the plight about our gateway bridges, the Maine Chamber of Commerce and the Maine Development Foundation (MDF) released a new report entitled "Making Maine Work." The document outlines challenges facing Maine's economy and prescribes actions that Maine's next governor and Legislature need to take in order to move Maine in a more prosperous direction. The foundation of the publication is a thought-provoking survey of more than 1,000 Maine businesses.
Another pithier document entitled "Maine's Investment Imperative II" authored by MDF is the longer narrative of our challenges and opportunities. They have scheduled meetings statewide in case you want to attend. (Click here for locations near you.)
By its own admission, "Making Maine Work" has virtually no new information. Many of the key metrics by which we measure Maine's economic health show roughly the same poor performance as in years past or, sadly, that we are trending further in the wrong direction: health care costs are high and rising, energy costs are high and rising, state regulations are impediments to progress and taxes and fees are high and rising.
These two fine organizations are apolitical; they do not engage in election politics but, instead, try to facilitate informed debate. They are bridge builders. From that perspective, their report concludes, "What is clear from the interviews and survey findings is that the business community and the political powers in the state need to find a way to push through these issues and work more collaboratively or Maine will continue to stall on economic growth."
Their organizations have to play the hand that they are dealt. Whomever the voters send to Augusta, MDF and the Chamber have to begin anew in the education and lobbying process. Endless forums and more than 18 years of a great MDF program called Leadership Maine have brought together hundreds of business people with state legislators to learn about Maine's economy. Has everyone's effort made any serious measurable progress? Not according to Maine's economic activity score.
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