Thursday, July 8, 2010

THE FISCAL STATUS OF THE STATE OF MAINE'S CHECKBOOK

It would behoove Maine voters, at least in this area, to regularly pick up the weekly editions of the Ellsworth American. Even though it is a weekly newspaper, unlike the Bangor Daily, the NEWS regarding this state's government is more informative and less partisan than the daily spoon-fed pablum issued by the BDN. Case in point was data provided in the June 17th edition which I saved to review for postings. Seems today is as good as any to look at some of the items.

The Maine Heritage Policy Center, produced jointly with the national Citizens Against Government Waste, has issued a new "Maine Piglet Book." As quoted in the Ellsworth American, this edition "shatters the myth that state spending is cut to the bone and only tax hikes and spending increases will lift the state out of its fiscal crisis." And there are 36 pages of reasons why Mainers should be concerned about the fiscal policies of government in Maine.

As an example, neither the Governor nor the Legislature really like to talk about the state's entire DEBT, choosing instead to focus on pieces of the bigger picture when questioned. However, the "Maine Piglet Book" puts on strong glasses and looks at the the nearly $13 BILLION.

According to the review provided by the Ellsworth American, the "lion's share of that amount is represented in just three components: $5 billion of UNFUNDED (emphasis added) liability in the retiree health care plan for state employees and teachers; $4 billion in bonds issued by various state agencies that involve a moral, but not necessarily legal, state obligation; and $3 billion of UNFUNDED (emphasis added) liability in pension funds for state employees and teachers.

COMMENT: When Maine state government can't pay what they owe and are responsible for (such as the state's share for public education) what has been its' practice? Passing the bill on down to the people in the form of increased property taxes. Think about property taxes having to cover an additional $13 billion on unfunded liability in the coming years. How many Mainers - or even summer property owners - will be able to pay those bills?

*****

Another informative article in the same June 17 edition (all on the Editorial pages BTW - so nice to see political positions located where they belong don't you know) - had to do with the effectiveness of all these Bonds we have been passing - to create jobs.

I will admit I was in support of two of the Bond initiatives on this last ballot. Probably would still have voted for the transportation even after reading the article in The Ellsworth American - BUT....

Those four Bond initiatives totaled $108 million-plus-interest. And they all carried the flag "to create jobs." Remember? Did you know that The American Recovery and Reinvestment Act of 2009 (TARP) has, as of March 2010, brough to Maine $792,422,158. According to our illustrious Governor, that amount of money has created 1,130 jobs. IF the governor is right (and why would he report fewer jobs than were created?), that's $701,258 cost per job - with most of the jobs in the public sector...meaning state government. Was that what TARP intended? More government jobs? At over $700,000 per job?

The Ellsworth American provided some examples: The DOT used up $93,543,753 of that TARP and it created just 42 jobs with it - that amount to $2,227,232 per job!

I realize that, right here, we are watching some long overdue work being done on Route 9. Culverts are being dug up and I, for one (and speaking for several neighbors) hope the new, deeper road-side culverts will absorb a lot more of the water from rains and snow melting. Those of us on the downside toward Davis Pond are experiencing waterfall effects that are uprooting entire trees and their root systems, erroding property and devaluing property regardless of what Augusta wants to claim. And we are supposedly going to see Route 9 paved from the Brewer line to the Clifton line. None of us will miss the potholes. So I am willing to acknowledge there are costs for asphalt, gravel, equipment, etc. But not to the tune of over $2 million per job/position. And these are probably not permanent positions.

There will be more to review and discuss between now and November but this year we MUST pay attention to the issues. As voters we cannot be complacent and vote just because it's the same old familiar face, or because "Johnny" is someone we know. It is time for the voters in this state to accept the responsibility that is theirs - If we do not put an end to what has driven this state to the brink of bankruptcy because of irresponsible spending and a lack of accountability on the part of social and welfare program recipients, this entire state will become truly lost to those who care for it the most.

No comments:

Post a Comment