The Legislature began its review this week of Gov. John Baldacci’s $306 million bond proposal this week, along with about a dozen competing proposals submitted by lawmakers.
As he proposed his borrowing package, Baldacci likened it to the recent federal stimulus package passed by Congress. “Two weeks ago, President Obama signed the most significant economic recovery law in modern history,” Baldacci said last week. “But we all know that the recovery package can’t address all of Maine’s needs. We must do our part to create jobs and strengthen our economy.”
While it’s important for the state to invest in ways that stimulate the economy, the governor’s bond package lacks many of the elements contained in the federal stimulus package and spends too much money in areas that will do little to produce economic growth. Realizing that the federal government is already borrowing unprecedented amounts, the state needs to weigh every investment more carefully than ever.
The largest portion of the governor’s bond package – $127.8 million – would be spent on transportation projects, including roads, bridges, railways and airports. The governor would also like to borrow $52 million for energy improvements and building projects at the state’s universities and community colleges and $43.4 million on the Land for Maine’s Future program.
The Land for Maine’s Future program would be a worthy investment in a typical year – but not this year. It’s hard to see what spending money on land preservation has to do with job creation that will help us out of this recession.
The wisest investment in the package, and the one that will probably do the most for the economy, is the $67.5 million that would be spent on competitive research and development grants and redevelopment of the Brunswick Naval Air Station.
The smallest piece of the pie – $15.5 million – would be spent on something that would be at the top of the list if the state were truly thinking about and investing in the future: energy conservation and the development of offshore wind power.
The vast majority of this bond money would create jobs in a single industry – construction. While construction jobs are an important part of the state’s economy, construction is not the only sector in need of a little stimulus. As the governor proposes his bond package, schools are laying off teachers, manufacturers are furloughing workers, stores are closing and towns are slashing services.
The federal stimulus bill included targeted money for education, green energy projects and tax relief. It’s far more important to invest in teachers and technology than the buildings that house them. Tax relief is vital to create an environment in which private enterprise can thrive, and it is something this state has failed to do repeatedly under the leadership of this governor.
Investing in the state’s future is as important now as it has ever been, but if improving the economy is the goal, then the state needs to be smart about where it puts its money. If that’s not the goal, then let’s call it what it is – a bond package that might be proposed any other year, just larger.
Brendan Moran, editor
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