Republican radio address

For the weekend of October 23-24, 2010

Greetings, this is Jonathan McKane, state representative from Newcastle, with this week’s Republican message.

Maine’s political landscape will change with the November election, but we will wake up the next day with the same problems we face today. Only time will tell if a new governor and a new Legislature will chart a course for a better future. There are plenty of ideas flying around the various campaigns – some good and some bad. We should hope that the ones that prevail will attack our most significant economic problems, because our current situation is unsustainable on many levels. Just ask the 50,000 Mainers who can’t find jobs or the hospitals that are owed $350 million for past-due MaineCare bills. The political status quo is not equal to the challenges we face.

You may have heard about the new state rankings by Forbes magazine that put Maine dead last for business climate and career opportunities. Last year, Forbes ranked Maine 41st among the 50 states. This year we hit rock bottom. You could say we have nowhere to go but up, but that depends on reinventing the way the state does business. Decades of poor policy decisions have knocked us down to last place, and it will take time to mount a comeback.

It’s important to keep in mind that Maine has a lot going for it. Our crime rate is low. Our environment is clean. We have great hospitals and health care providers. We have some fine schools and teachers. We are a neighborly state full of friendly folks. And from our magnificent coast to our fields, forests and mountains, Maine’s natural beauty is unmatched. If you like outdoor recreation, this is paradise. The Forbes rankings put us 16th for quality of life.

But as the saying goes, you can’t eat the scenery. Forbes was more interested in factors that affect the business climate and job creation. Those include the labor supply, the regulatory environment and the costs of doing business, such as taxes and energy. Two things stand out in the survey. We are the 48th worst state in terms of regulations on business, and we come in number 44 in the ranking of prospects for growth. The Forbes editors looked at the whole picture and saw little hope for a strong economic rebound.

It would be nice if we could prove them wrong. A better economy should not be a political issue, because as President Kennedy once said, “A rising tide lifts all boats.” Unfortunately, in Maine it has become political. One side has spent 30 years building and defending the very bureaucracy that is strangling our economic vitality with high taxes, an extravagant welfare system and punitive regulations. When we spend $6 million a year to give heroin addicts free rides to methadone clinics, you know things have gone off the rails.

The other side advocates lower taxes, more personal responsibility and greater economic freedom. In my three terms in the Legislature, I’ve seen the two sides clash on these issues like opposing armies. The majority party almost always wins due to their sheer numerical advantage – they have ruled the Maine House for 36 straight years.

But now it is clear that their policies have driven us into a ditch. We face a $1 billion deficit in the next budget. We have 300,000 people on MaineCare – about one-fourth of our population. And we have a public pension debt of $4.4 billion that will cost $9 billion to pay off. Considering these tough financial problems, hopefully both sides can come together in the new Legislature for the common good. As the Envision Maine authors said in their new report on state government: “It turns out that whatever you care about – whether it’s jobs or people or the environment or social programs – the economy matters. A stronger economy is the only answer to our many problems.”

That same report warns that any attempt at serious change in Augusta will meet stiff resistance from the entrenched special interests. But that will not change the facts. There simply isn’t enough money to maintain the status quo. Standing still is not an option. The solution is a new attitude in state government. For too long Augusta has regarded private sector employers as adversaries to be taxed, regulated and tightly controlled. Some companies have responded by closing down or packing up and leaving. When you have the worst business climate in the country, there’s a high price to be paid in lost jobs and lost revenue to the state. With a new administration coming to power and a new Legislature, this is the time for a fresh start to begin our long journey back to prosperity. The future of Maine is in our hands.

This is Jonathan McKane. Thank you very much for listening.

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