Sometimes we get so caught up in focusing on the projects we are involved with, that we don’t take the time to step back and see what else is going on in the world.
Last Thursday, I got a chance to step away and leave my projects behind for a day and a half to head up to Sunday River for the 2018 Leadership Summit, an event of the Maine State Chamber.
There, along with 80-100 business leaders and Maine legislators, we dove into the issues affecting businesses and citizens of our great state. Over several dedicated sessions, we heard from leaders of both parties and they had a chance to hear from us about how current laws, and some proposed items, affect Maine businesses.
It was a fascinating, eye-opening and productive event.
Below are a few of my takeaways from the event that I think you may want to keep an eye on for 2018 and beyond:
• The Thursday evening program was highlighted by a presentation on tax conformity. That may not sound interesting but the effects of it will be enormous, so get used to hearing about tax conformity over the next few weeks.
The presenter, Alec Porteous, who is the commissioner of the Maine Department of Administrative and Financial Services, gave one of the most complex presentations I’ve ever seen, and did so in a succinct and direct manner that helped break a complicated issue down into simpler concepts.
Two big takeaways from this are: Porteous knows more about financial matters than I will likely know about anything — and secondly — in conforming to the new federal tax law the governor is committed to not increasing the tax burden to Mainers (which could occur to the tune of a $250 million increase if the state follows “strict conformity,” which means complying to every part of the federal law changes).
Commissioner Porteous did give a broad outline of the upcoming proposal the governor will be advocating for, which is a “selective conformity” package, meaning accepting some federal guidelines while other guidelines are altered or changed.
• Marijuana was a hot topic. The issue here is that the initiative passed at the polls didn’t have the abundance of rule-making needed to make it enforceable.
The original initiative had 34 pages, and the current edition has 74 pages (so 40 pages of additional rule-making). The problem is this kind of rule-making, and asking for expert testimony, takes a lot of time — but lawmakers are out of time and without a moratorium, the law right now has some significant issues.
Workplace liability is still unclear. Impairment recognition at work is not addressed in terms of how to test for it. If a workplace accident occurs, what happens then? With no moratorium passed, the employers of Maine are working without a net if those questions aren’t answered soon by legislators in committee.
• With low unemployment, certain hiring laws loosely called “ban the box” laws are being considered. These would make it illegal to ask about criminal history on job applications. Also some criminal record expungement bills are being considered for the same reasons.
Both bills have some employers very uneasy.
• Selective targeting of high income earners, known to some as the “involuntary success tax,” was discussed as Mainers will be faced with another proposal at the 2018 ballot box for this type of initiative (much like the 3 percent increase at the 2016 ballot box which resulted in a negotiated $162 million in education funding in lieu of the tax increase).
Hospitals told legislators that this selective targeting made recruitment of high income earners, specifically new doctors and dentists, extremely difficult, especially in rural Maine. Tax lawyers told legislators that weekly during the 2016 debate, citizens came in to discuss changing their residency to out-of-state second homes where the taxes were less.
Though the cause and intended outcome may seem righteous, the unintended consequences can mean less doctors, professionals and philanthropists calling Maine home.
• Transportation needs were an interesting discussion. Currently, Maine is in year four of a 10-year $100 million annual transportation bond to help rebuild infrastructure — primarily roads, bridges, etc. But the need for enhanced public transportation arose.
According to a 2016 public transportation survey of state funding, Maine currently spends $0.86 per person on public transportation. This was calculated by dividing the budget by the population. Other rural states spend significantly more per person, such as Vermont ($11.87) or North Dakota ($7.05). In an increasingly aged state, trying to attract more millennials (who see less need for their own cars), the question needs to be asked, when will Maine invest in public transportation to build its infrastructure?
• Renewable energy is on the rise in Maine and everything from storage of renewable energy, transmission rates, distribution rates and future projects were all discussed. Look for the state energy plan to be released mid-year to help provide a direction for the future on some of these key issues.
• Attracting workforce and training of new workers was another common theme. Groups like Educate Maine and Live and Work in Maine discussed their work with dozens of other organizations on an program called MaineSpark.
The goal of MaineSpark is to have 60 percent of Mainers credentialed by 2025, with a degree, or certificate of completion that allows them to be employed in certain fields. Currently, Maine has a 42 percent credentialed rate.
For more information on this program, visit mainespark.me.
The bottom line is that there are a lot of issues businesses are dealing with right now, and legislators are trying to do the best they can too. This summit reminded me that good legislation doesn’t arise from memes, and Facebook rants, it comes from conversations like these.
I think it’s important that we all continue to have these conversations, especially with those who see the world differently, and stay open for the right compromise somewhere in the middle.
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