Special Edition
2014
THE CHAMBER NEWS
WHAT WE STAND FOR Business Leaders Rate the Economy This fall, almost 150 local leaders responded to The Chamber’s Annual Survey. Representing a broad cross section of the local economy, these businesses in total employ almost 15,000 people locally in manufacturing, health care, financial services, education, transportation and logistics, construction, retail and business services. Over 90% of those responding represented locally owned and operated organizations, more than 80% were for profit businesses, and most of the area’s largest employers responded to the survey.
Insurance Costs Still a Problem Members were asked, “What policy issues are important to your business?” There was absolutely no surprise on the top policy issue members said must be addressed – the cost of health insurance. The next highest ranked issues were somewhat of a surprise. They were (in order of prominence): Collaboration between private enterprise and government Collaboration among local governments Cost of workers compensation insurance Property taxes Income taxes
by the Governor – an important step in shoring up the state’s deteriorating infrastructure.
CHALLENGES STILL FACE MAINE Moving forward in the second session of the 126th Legislature, The Chamber’s priorities have not changed. Maine needs to “stay the course” on reforms enacted in the 125th Legislature. While the second session is structured as a short session, there are several key pieces of legislation that will be considered. We urge the Legislature to take action to enhance Maine businesses’ ability to compete and prosper.
Health Care and Health Insurance Reform
The high cost of health insurance remains the most important issue for Maine employers and their employees. Two years ago, the Legislature aimed to stabilize the The survey also asked leaders to identify what resources costs of health insurance. And those costs have been their organizations needed to compete in today’s global, evened out in the individual market and for small busimobile economy. They ranked the need for quality K-12 nesses. For others, the costs have continued to rise far schools much higher than anything else. That was folbeyond their ability to pay. The ultimate solution to this lowed (in order of ranking) by “quality of life issues,” huge problem is an effective coverage system. The most availability of quality post-secondary education, telecom- significant way to stem the rising cost of health insurance munications infrastructure, and access to markets. is to have everyone in “the pool.”
Resources Needed by Businesses
Little Progress is Made
Four actions will continue work on this perplexing problem: From the business perspective, the 126th Legislature’s The underlying costs of health care must be stabifirst session was grueling with the only major accomlized through efficiencies and eliminating costly plishments being the passage of the biennial budget and redundancies. There must be incentives for the the paying of hospitals the money they were owed by the health care industry to lower costs. State. Late in the summer, the legislature gave strong bi Health care must be provided in the most costpartisan approval to a bond package which was supported effective settings -- meaning that many services
must not be delivered in the emergency room and others should be provided regionally. Barriers to associations providing health insurance need to be removed. Maine needs to document, problems with implementation of the Affordable Care Act so appropriate changes can be made.
Tax and Fiscal Policy The 126th Legislature tax changes can best be described by what could be versus what was. The highlights of the legislature included increasing the general sales tax rate to 5.5% from 5%, increasing the Lodging and Prepared Meals tax to 8% from 7%, while reducing the bonus depreciation credit to 9% from 10%. They also lowered the standard deduction and limited the amount of itemized deductions to $27,500. However, what could have been and yet could be is the May 2, 2013 Draft Summary Proposal to Modernize and Simplify the Tax Code from the bipartisan legislative committee which drafted a bold tax reform proposal for the State of Maine.
Government Structure Maine has over 800 local and regional governments and special districts across the state. We must continue to work towards reducing that number to create a government structure that is streamlined, transparent and efficient. We will accomplish this by doing the following: Continue to encourage the Lewiston and Auburn Councils to work towards an integrated government model to reduce duplication of services and taxpayer dollars. Encourage the cost-effective and efficient regionalization of services in the communities of Androscoggin County and around the state. Work with local legislative leaders to submit legislation to create a “Commission on Local Government Reform and Collaboration.” The Commission would be charged with developing recommendations on ways to increase the efficiency and effectiveness of local governments to achieve cost savings for taxpayers and to facilitate economic development throughout the state. Incent state and local leaders to consider creating a “Local Government Services Collaboration Grant Program.” This program would provide grants to local governments interested in combining the provisions of local government services with those of other local governments throughout the state.
During this spring, several from the group above presented their concept to the Advocacy Committee. Most attending were in support of the proposal with spirited discussion. In principle, we should support this effort. It is expected that this proposal will be a low priority durEducation and Workforce Training ing the upcoming campaign season and may not be addressed until 2015. Our businesses have reported the need for a more educated and skilled workforce in order to reach full ecoHighlights of the Proposal include: nomic potential. In the Lewiston/Auburn area, a signif Raise tax revenues from non residents while reicant number of positions go unfilled because of a lack lieving tax burden on residents of qualified applicants. The following actions must be Reduce state income, corporate and property tax instituted: rates Provide tax credits for low income taxpayers on Robust connections need to be made between all sales and property taxes education providers and local employers. These Stabilize tax revenues would include the following aspects: Create an attractive tax environment for individu1. College and career preparation for life and als, retirees and business that locate or continue to career. Creating a lifelong learning perspecreside or do business in Maine tive in all students which includes a communi Repeal the Estate Tax ty service component. 2. Help students identify their own talents and We should encourage and stand for tax reform that passions -- and help them find ways to lowers the tax burden on Maine residents and creates an explore occupational possibilities with local attractive tax environment for businesses. We should employers. also encourage the Legislature to maintain or reduce the 3. Customized learning experiences for all financial burden on municipalities. students which help them find their talents and passions.
mented by expanded energy conservation to mini4. Extensive mentoring by local employers for mize the demand on any and all fuel sources. their employees which helps those employees identify opportunities for continued Communities should develop a single community learning. policy on energy and efficiency which would 5. Connecting local K-12 educators with local identify load density areas (high energy consumpemployers so they can learn about the local tion areas, businesses, high residential density economy and the opportunities it for their areas). This base load data can identify areas to students. explore non-traditional generation for heat, power, and cooling. Reallocate resources to create a unified, high quality, statewide pre-K program. A pre-K through To reduce consumption of fossil fuels and the pro12 focus on the STEM areas is sorely needed to duction of greenhouse gases, Lewiston and Auburn provide necessary workers to support economic should aggressively pursue the implementation of development and insure quality of life for Maine’s the Complete Streets Policy adopted in early 2013. future. This focus on additional modes of transportation can reduce the energy costs for residents and visi Reorganize public schools so that they are a twelve tors. -month operation. As a transition, special summer programs with academic and recreational compo- With limited public dollars to invest in land consernents should be designed for students so they can vation, the State of Maine should consider how the continue their learning process June through Land for Maine’s Future Program can strengthen September. its focus on economic development, so projects along waterfronts can be competitive as our cities Energy Costs & the Environment and towns focus on redevelopment and access to open space in neighborhoods and downtowns. High energy costs in Maine compared to other states Lewiston and Auburn must actively pursue the puts the State at a disadvantage for attracting new availability of natural gas to support local businessbusinesses and retaining existing ones. Energy costs es and their drive to become more energy effineed to go down to make Maine and our region more cient. competitive. Providing leadership in this effort will also attract businesses to this region as they will view Transportation and Infrastructure us as having innovative thinking and being environmentally conscientious. Multimodal transportation and telecommunications infrastructure are critical to thriving businesses in Maine needs to have diversity in power generating Maine. The Maine Section of the American Society of sources. Natural gas, biomass, hydro, wind, tidal, Civil Engineers (ASCE) has recently stated: “Maine’s and solar are all alternative generation sources economy is built on its infrastructure. The health, safewhich should be explored and encouraged based ty and welfare of our citizens are directly tied to the upon current and future availability, technology, quality of our infrastructure. Current and forecasted and financial performance. This should be one part funding is inadequate to meet current and future of a coordinated state energy policy. In negotiating needs.” for solid waste and recycling collection services, the City of Auburn should consider bargaining to Transportation, distribution and logistics is one of the ensure alternative sources of solid waste, now des- fastest growing sectors in the L/A region. Nationally it tined for landfills in Maine, be diverted to MWAC is recognized that a key to the economic future with in accordance with the State of Maine hierarchy of global competitiveness is our capacity to efficiently solid waste management. move goods and services. Maine should encourage those communities willing to support trash-to-energy plants to expand Towards these goals, we recommend the following pritheir facilities, if feasible, to prevent the additional orities: landfilling of municipal solid waste. Integrate local power districts serving local consumers of addi Demand toll equity for travelers making the trip tional energy into industrial parks or other unique from Lewiston-Auburn to either the Portland or economic development assets. Augusta areas. Encourage MDOT to evaluate the Power generation cost savings must be supple-
tolling of parallel routes, primarily the I-295 corridor between Portland and Augusta to closely match the tolls along the I-95/Maine Turnpike corridor (including economic impacts). Encourage the Maine Turnpike Authority to review and implement toll equity within the MTA corridor. Expand the availability and reliability of Natural Gas service in the Lewiston/Auburn area. Encourage the continued deployment of high -speed broadband telecommunications infrastructure in the greater Lewiston-Auburn region. Encourage the development of passenger rail to and from Montréal along the Portland to Auburn to Bethel corridor. Establish commuter and passenger transportation services between downtown Lewiston - Auburn and Portland with key links to the Portland Transportation Center and the Portland International Jetport to foster expanded inter-regional transportation choices for work and pleasure trips. Demand that State government provide innovative leadership to resolve the State’s tremendous infrastructure funding problems.
Regulation The Administration’s focus on improving the regulatory process over the past two years is a great start toward a fairer regulatory climate. We remain convinced that further improvements in the regulatory process are all about "attitude." What businesses and developers look for are fair, equitable, and timely decisions. At the local level, the following would be helpful: ● Establish uniform construction codes for neighboring communities with enforcement staff that work together across municipal boundaries. ● Revamp rehabilitation standards so that codes for downtown neighborhoods make it more economically feasible to rehabilitate and reuse older buildings. Adopt a consistent system for complaints or appeals. Every government entity has its
own and some of them can take years to settle. ● Create a “default to yes” environment. Unlike business friendly states, most of Maine’s municipal and governmental entities automatically say NO to any new idea, and the proposer must prove why it is a good and worthy idea. The automatic answer should be YES, unless the government can prove why it should be NO. ● Governmental entities at all levels must learn to work together with consistent responses and an understanding of the extended impact of various rules, laws, regulations and so forth.
The Board of Directors gratefully acknowledges the following members of the Chamber’s Business Advocacy Committee for their assistance in preparing this document: Division Co-Chairs Clifton Greim, Harriman Architects & Engineers Paul Landry, Fish Bones American Grill Mark Adams-- Sebago Technics Inc Dick Albert-- Champoux Insurance Agency Maureen Aubé-- The Chamber Michael Bigos--Berman & Simmons Ryan Booker-- Hahnel Bros Co Mike Carey Mike Cox-- Central Maine Orthopaedics PA Adam Dunbar-- Wells Fargo Advisors LLC Stacey Dostie Kate Egeland-- International Paper Auburn Joyce Gibson—University of Southern Maine Elaine Hemenway-- Payroll Management Inc Jonathan LaBonte—Androscoggin Land Trust Jim Lamson-- L & B Electrical Contractors Inc Paul Landry-- Fish Bones American Grill Ronald Lebel-- Skelton Taintor & Abbott Chip Morrison-- The Chamber Mark Overhaug--Austin Associates PA CPAs Chantel Pettengill, Pettengill Academy Cindy Quinlan-- Clover Health Care Dan Smiley -- Turner Publishing Judiann Smith— Spurwink John Snyder-- On the Spot Rental Management Linda Snyder-- ReGroup! Business Solutions Bill Stone, Promising Futures Robert Thompson-- AVCOG Peter Traill Ralph Wallace-- Trask-Decrow Machinery Inc Jim Wellehan--Lamey Wellehan Shoes Jim Wilkins-- Auburn Public Library Bud Willey-- Canteen Service Co
Email Address
St Address
PO Box 927
Zip
Committees
Chair, Health and Human Services; Government OverME 04240 sight Committee
ME 04252 Inland Fisheries and Wildlife
Chair, Energy, Utilities and Technology; Labor, Commerce, Research and EcoME 04210 nomic Development
ME 04210 State and Local Government Appropriations and Financial ME 04240 Affairs
Judiciary; Veterans and LeME 04210 gal Affairs
ST
375-4599 woodysnavy@aol.com
Sabattus
ME 04280 Inland Fisheries and Wildlife
New Gloucester ME 04260 Inland Fisheries and Wildlife Oxford ME 04270 Taxation Livermore Falls ME 04254 Taxation Criminal Justice and Public 71 D Rep. Michel Lajoie 783-1927 Rep.Michel.Lajoie@legislature.maine.gov 279 Old Greene Rd Lewiston ME 04240 Safety 12 Orange St Lewiston ME 04240 Taxation 73 D Rep. Nathan Libby 312 Ridge Rd Lisbon Falls ME 04252 Veterans and Legal Affairs 17 R Sen. Garrett Mason 353-9086 garrett.mason@legislature.maine.gov Education and Cultural Af103 R Rep. Michael McClellan 655-4438 mmcclellan@maine.rr.com 27 Pismire Mountain Rd Raymond ME 04071 fairs Energy, Utilities and Tech80 R Rep. Mel Newendyke 268-2553 mln@fairpoint.net 84 Small Rd Litchfield ME 04350 nology 101 D Rep. Christine Powers 318-2511 cbpowers@mac.com 280 Thompsons Point Rd Naples ME 04055 Transportation Chair, Appropriations and 74 D Rep. Margaret Rotundo 784-3259 peggy.rotundo@gmail.com 446 College St Lewiston ME 04240 Financial Affairs Agriculture, Conservation 96 R Rep. Jeffrey Timberlake 225-6016 jtimberlake_us@yahoo.com 284 Ricker Hill Rd Turner ME 04282 and Forestry 70 D Rep. Wayne Werts 783-6931 rw556@aol.com 556 Pownal Rd Auburn ME 04210 Transportation
75 R Rep. Stephen Wood
Lewiston
41 Russell St 12 Lewiston Rd 50 Hebron Rd 453 Moose Hill Rd
783-1897 mcraven@midmaine.com
Lisbon Falls
Auburn
Lewiston
Auburn
Auburn
City/Town
2 Passing Lane
105 R Rep. Eleanor Espling M. 926-6082 espling2@securespeed.us 100 R Rep. Roger Jackson 539-4613 jackson3470@roadrunner.com 81 R Rep. Gary Knight 897-2489 lgary.knight@usa.net
16 D Sen. Margaret Craven
Crafts
104 R Rep. Dale
353-5469 dalecrafts@aol.com
786-4540 jcleveland@cdcorp.org
Cleveland
15 D Sen. John 183 Davis Avenue
344-3017 RepMichael.Carey@legislature.maine.gov 10 Perrier St
54 Riverside Dr
72 D Rep. Micheal Carey
Bolduc
576-4907 bolduc74@yahoo.com
Phone #
69 D Rep. Brian
Last
784-0036 RepMike.Beaulieu@legislature.maine.gov 27 Sherman Ave
First
68 R Rep. Michael Beaulieu
D P Title
Local Legislative Delegation