Even though the pandemic and the economic dislocation it has caused are far from over, now is the time to start making plans for economic recovery and take steps towards building Maine’s post-COVID economy. To that end, Gov. Janet Mills set up an Economic Recovery Committee. The Committee consists of business people, elected officials, academics and state officials, and six sub-committees dedicated to various critical sections of Maine’s economy. They have been meeting since May, and they have recently announced their initial recommendations.
These recommendations fall into three basic categories, supporting Maine’s people, stabilizing Maine employers and investing in Maine’s infrastructure. The funding for the recovery spending will come, in large part, from the $1.2 billion Maine has received from the federal government to help deal with the pandemic.
To start with, the Committee has recognized that a key component of helping Maine’s people is making sure our schools are safe. This is critical not just to our economy but also to the well being of our children. To meet that goal, they have recommended $300 million in spending for Pre-K-12 education, and an additional $75 million for higher education. Other recommended spending to help people includes $20 million to improve the public health system and purchase personal protective equipment, $45 million for expanded child care, and $50 million for housing to rehouse people who were made homeless by the crisis and prevent future evictions.
Many of Maine’s employers have been devastated by the conditions caused by the pandemic and they are a necessary component of any recovery. To help employers recover, the committee recommends establishing a $300 million grant program to help Maine’s for profit businesses and a separate $50 million fund for non-profits. Although actual losses faced by businesses are much higher, this should help stabilize the situation for many, giving them the chance to recuperate. They also call for spending $50 million on encouraging innovative businesses and $30 million for workforce development to make sure that our workers are trained and ready for the new work environment.
The final set of recommendations deals with making improvements to the state’s infrastructure. If nothing else, this pandemic has taught us the importance of working-from-home and how great the need for high-speed internet is to the economy. Sadly, too much of Maine does not have access to reliable internet service, and the Committee recommends spending $165 million to expand high-speed internet to those areas that are not currently served and to improve internet service and availability throughout the state.
The Legislature is planning to come in for a special session next month to finish off its work that was interrupted in March and do more to help the state get through and recover from the pandemic. This will include helping to guide spending on economic recovery (CARES Act funding) and working on other bills that will help prepare Maine’s economy for life after the pandemic. One of those bills is LD 2092, which I co-sponsored. This bill would set up a council to plan for Maine’s participation in the emerging nanosatellite and aerospace technology sector. There are already several firms in Maine that are interested in developing new technologies in this industry. The bill reinforces our support for a robust state economy.
Maine will recover from the problems caused by COVID-19. We need to make sure that the new-economy that arises out of this crisis is strong, robust and ready to meet the needs of worldwide economic changes. The recommendations of the Economic Recovery Council are a good starting point in that direction.
Rep. Shawn A. Babine is serving in his first term in the Maine House of Representatives, representing the coastal region of Scarborough. He serves on the Legislature’s Joint Standing Committee on Innovation Development Economic Activity and Commerce.
Comments are not available on this story.
Send questions/comments to the editors.
