I would like to thank the Lakes Region Weekly for the opportunity to write this column. I represent District 102 in the Maine House of Representatives, which includes most of Standish. I enjoy opportunities like this to communicate with Standish residents. As always please feel free to contact me anytime by e-mail or phone.
I recently read an interesting letter to the editor in the Portland Press Herald titled, “It takes more than tax cuts to get the economy growing.” While I have generally supported targeted tax cuts over the years I couldn’t agree more with this statement. Economic development takes hard work and dedication to work, not just simple cuts.
While the Legislature has had to deal with some downright ridiculous issues (such as the great debate over whether the Blueberry Pie or the Whoopie Pie would be the state dessert), I continue to believe we need to focus on high-quality job creation. Last year, we debated several dubious bills, which were presented as being “good for business” and as “job creators.” One bill was written simply to weaken laws that prevent children from working late on school nights.
Another bill proposed exempting children under 20 from Maine’s minimum wage laws for their first six months on a job, allowing businesses to pay them as little as $5.25 an hour.
I opposed these bills. Gimmicks like these do not create good paying jobs. I strongly believe that the Legislature needs to focus on real ways to help the private sector create good-paying, high-quality jobs. Fortunately we do have some programs, which are making a difference.
One program that is currently helping to create jobs is Maine’s Pine Tree Development Zone law. I, along with other area legislators, worked on important changes to this law including making it a statewide tax incentive program. Originally, the law was a very small program that provided incentives in far northern and eastern Maine. Now the Pine Tree Development Zone law allows businesses that relocate or expand in Maine to greatly reduce, or even eliminate, all state taxes for up to 10 years.
Unfortunately, Maine’s tax code is riddled with tax carve-outs that have been lobbied for by special interests and often provide no financial benefits or good jobs to the people of Maine. The Pine Tree Zone is different. The law is designed to benefit two important groups: Maine companies and Maine workers. To qualify for the incentives outlined in the law a company must provide good jobs. The law defines good jobs as those which provide a certain level of income (this income amount varies from county to county). The company must also provide access to group health insurance and access to group retirement benefits.
Another state program which is working is the Maine Technology Institute. Going door to door over the last few years I have had the pleasure of meeting many small business owners in Standish. I met several small business owners whose product or focus is high-tech. Most used the help of the MTI.
Created by the Legislature in 1999, the MTI is an industry-led publicly funded nonprofit organization. It provides early stage capital and commercialization help in the form of competitive grants, loans and equity investment. This money is then dedicated to the research, development and application of technologies that create new products, processes and services which generate high-quality jobs across Maine.
MTI-funded companies say that MTI funding has been critical to their commercial success. Since the year 2000, MTI has funded 1,295 technology projects throughout Maine, a financial commitment of $106 million dollars which in turn leveraged $173 million in additional funding.
It’s often said that government can’t create jobs. While this may be true, government can play a vital role in creating the conditions that allow businesses to grow and create new, good paying jobs. It’s time for all of us in Augusta to stop the empty rhetoric and start working together to create good jobs.
If you have any ideas or would like information on existing policies or need help navigating state government please feel free to contact me anytime. My e-mail is repmike.shaw@legislature.maine.gov and my home phone is 787-4352.
Rep. Mike Shaw is the Democratic representative for part of Standish and serves on the Inland Fisheries and Wildlife Committee.
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