Saturday, June 5, 2010

JUNE 8 BALLOT QUESTIONS - NEW INFORMATION

Next Tuesday, when we head to our Town Offices to vote on the School Budget and the various candidates for Governor and Legislature, we will also be faced with FIVE important Questions - one to repeal a tax-related bill passed last year by the Legislature - and four Bond questions.

At first I was inclined to vote against all of the bond issues - as though this state needs any more debt. But after reading a few well written and reasonable articles in the May/June issue of "Maine Ahead", a new Maine magazine directed for Maine businesses and people interested in political and innovation thinking for Maine's future, I have reconsidered my position on at least two of the Questions.

Let's start at the beginning with Question #1 - the repeal of the so-called "Tax Reform Bill."

I have been opposed to this Bill since the final Bill was passed. At the beginning it was touted as a means of including Maine in to those states who are "tourist states" and collect tourist tax dollars to support those parts of the state's infrastructure used by tourists - namely roads, bridges and tourist attractions such as state parks. Great idea, I thought. But this was not the Bill the Legislature passed. Sales tax was expanded to numerous items that are basic to Maine residents - people who manage, somehow, to hang on long after the tourists leave once the leaves have turned and need to be raked - right up until the tourists return which is usually after the snow has melted and freeze heave has left and the roads are - more or less - level (barring the potholes). NOTE: The Snow tourists manage to escape most of the expanded sales taxes in this new Bill.

However, while the Maine Legislators claim this Bill, as it stands, will lower the average Mainer's state income taxes (providing the average Mainer pays an income tax) from 8.5% to 6.5%, this is NOT true. This will only apply to those Mainers with an annual income less than $28,000 (see the BDN June 5-6 letters for more details on this). AND, under this Bill, there will be NO itemizing of state income taxes - no deductions or exemptions. No deductions for your mortgage interest or every-rising property taxes. No deductions for charitable contributions to churches or Salvation Army or Goodwill or Haiti or any other disaster. Yes, you can itemize for your Federal income tax - and then add back in all that income on your Maine income forms. Simple work, isn't it. And do you think your tax rate will go down? Think again. It's called the Bait and Switch con game. Something like "You've just won a Million dollars - you just need to send me $10,000. for the processing of your claim. Mail it to Nigeria." Have you heard of that con game? I think the Legislature got their idea from that crowd.

I'll be voting YES on Q.#1 - YES to repeal.


Another Question (don't have the #) will be a Bond issue for transportation - primarily for the existing rail line primarily in northern Maine. I'm going to quote some of the pertinent information from the Maine Ahead article titled "Maine, Back on Track: (page 72-73).

"Rail remains the most efficient way to move freight, especially heavy cargoes over long distances. Today's trains move a ton of freight an average of 436 miles per gallon of fuel; the figure for trucks is 130 ton0miles per gallon. The trucking industry is working on ways to improve this, such as increasing the efficiency of truck engines, building with lighter-weight materials, and adding additional trailers. Still, the Maine Dept. of Transportation estimates that one freight train can do the work of 280 trucks.

"That's one reason the state wants to purchase roughly 240 miles of rail serving northern Maine, at a cost of $17 million, to stave off the loss of freight rail service for industries that depend on it. It's peanuts compared to new highway construction. A modernized rail system will cost less and do more for Maine's economy than slashing new asphalt arteries through the woods.

"I'm (the writer) not dissing trucks. They have advantages over trains in that they can reach more places and transport perishable goods more quickly to specific destinations. But for long distances, and moving freight from Halifax to Saint John through Maine to destinations in the American heartland as envisioned by Atlantica supporters, a better alternative is "intermodal" transport, where truck trailers can be directly loaded, onto and off of rail cars. The American Association of Railroads estimates that if just 10% of current truck volume was shifted to intermodal, more than a billion gallons of fuel would be conserved each year.

"According to Cianbro, building an east-west highway will cost at least $1 billion, but most experts agree that this is an extremely low low estimate. Moreover, the road will need to be periodically repaved, at a cost of $200,000 to $400,000 per mile, and these costs will accrue often, given the Maine climate and the anticipated use of the road by heavy trucks......"

There is a lot more valid information in this article BUT the Bottom line, for me is that I will be voting YES for the Transportation Bond which will enable the state to buy that railroad line in northern Maine.

Finally... there is another Bond Question having to do with a $23.75 million to support job growth in Maine.

For me, the important part of this Question has to do with the following which was written by James Ortiz, president of Southern Maine Community College, for the article titled "Brunswick's New Economic Engine" (pages 71-72):

"...$4.75 million will be dedicated to renovating three of the four buildings at the Brunswick Naval Air Station for their new use and to make them ADA compliant. The $23.75 million will make Maine eligible for $39 million in matching federal funds.

"The $4.75 million allocation needs to be seen in an important context: The U.S. government had given SMCC the buildings. For a relatively small investment, the people of Maine will benefit from a resource that promises to both solve problems and create opportunities.

"...Southern Maine Community College is the fastest-growing community college in New England. In 2009, SMCC turned away 3,000 degree-seeking students due to lack of capacity. Once fully operational, the Brunswick campus will enable the college to serve 2,000 additional Maine students.

"SMCC's new campus will be an economic engine for Maine as well as an opportunity for students to be trained in high-paying, high-demand jobs. Courses will be offered in Maine's most promising economic clusters, including composites, engineering, manufacturing, heavy equipment, and health science. These courses will be offered cost-effectively, thanks to some exciting partnerships.

"The campus will be a hub for a consortium of higher education institutions, including the University of Maine, USM, UMaine-Augusta, Bowdoin College, Southern New Hampshire University, allowing students to glean from all of these institutions at a single location.

"Another pivotal initiative at the Brunswick campus is the Maine Advanced Technology & Engineering Center (MATEC), a collaborative venture of Southern Maine Community College and the University of Maine-a seamless education pathway leading from associate to bachelor to master in engineering degrees.

"At present, Maine is 49th in the nation for engineers per capita. While the national average for graduating engineering students is 5.2%, Maine's rate is only 3.6%. MATEC will help bring more of these vital professionals to Maine's workforce.

"MATEC will also be a regional innovative cluster and R&D magnet that will attract new industries, and support business and job growth in Maine. Projected businesses MATEC could attract might produce structural components for bridge beams, wind blades for energy turbines, and even airplanes composites...."

Again, there is more relevant information in this article - but this should show readers why I have decided to vote YES for this Bond issue.

There is also an article written by Orlando Delogu regarding Question 5 which pertains to safe water.

Interested in reading MaineAhead? Go to http://www.Maineahead.com - or look for the May/June issue at Hannafords. The cover has a beautiful yellow kayak because the feature story is - "Why Old Town Canoe is Still on TOP". That, too, is a good article about an outstanding Maine business. If only we could elect a state government that would utilize the same good business practices maybe this state could get out of the bottomless sinkhole 34 years has created. Maybe if we voters use our heads instead of our entrenched stubbornness to be nothing more than what we have ever been we can get out of this mess.

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