Report offers advice on how to 'GrowSmart'

By SUSAN M. COVER
Staff Writer

Copyright © 2006 Blethen Maine Newspapers Inc.

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AUGUSTA -- Central Maine, like the rest of the state, is benefitting from an influx of people, a trend that could help the region and the rest of Maine grow in the years ahead, a study released today found.

The Brookings Institution Metropolitan Policy Program spent more than a year studying the state, resulting in a 132-page report released by the Washington D.C.-based think tank and Yarmouth-based GrowSmart Maine.

The study found that Maine is in a good position to capitalize on its image as a beautiful state with nice small towns and lots of outdoor recreational activities.

However, it cautioned that an unprepared workforce, unplanned development, the high cost of government and high taxes must be addressed for the state to succeed.

"This is a report about prosperity and how to improve the state's prosperity without wrecking the place," said Mark Muro, policy director of the Metropolitan Policy Program at Brookings.

Along with statewide results, Brookings released statistics specific to central Maine, which it defined as Kennebec and Somerset counties.

Some of the key central Maine findings:

*After losing nearly 1,200 people to other states between 1995-1999, central Maine gained more than 2,000 from 1999-2004.

*The number of young adults (25-34) in central Maine dropped 23 percent in the 1990s, far exceeding the national loss of 7.6 percent.

*After years of decline, Augusta, Waterville, Fairfield and Farmingdale are growing again.

*Central Maine led all of the state's regions in job loss from 2001-2004, losing more than 1,200 jobs.

The report offers solutions that include cutting the size of government, reorganizing schools, simplifying building codes, investing in research and development and reducing taxes.

To pay for some of the these efforts, the report suggests raising the lodging tax from 7 percent to 10 percent, cutting government by $60 million to $100 million a year, and increasing the fee to record deeds.

To reduce taxes, the report suggests having the state reimburse towns with large amounts of tax-exempt property, expanding two existing tax break programs, increasing the amount at which the top income tax rate kicks-in, and reducing the top income tax rate.

Rep. John Piotti, D-Unity, said he was glad to hear that the authors of the report believe that farms can play a role in the state's economic future. As executive director of Maine Farmland Trust, he also liked the blend of recommended actions.

"The economic development strategy involves tax shifts, spending cuts and investment," he said. "I think that's right on the money. That's a very powerful message to come from an independent think tank that has a great reputation."

GrowSmart released the report about a month before the November election in the hopes that some of its findings and proposed solutions would become hot-button issues in the race for governor, said Alan Caron, chief executive officer of GrowSmart Maine.

"It's when people are focused on larger issues," Caron said.

GrowSmart paid Brookings about $450,000 for the report and to cover the costs of printing, Caron said, adding the group has raised a similar amount to fund a campaign to promote the findings in the report.

Caron, whose four-year-old nonprofit group advocates for planned growth, said he was surprised that the report found municipal government to be efficient, while state government and K-12 education were identified as places where cuts can be made.

He also said that while many people express "gloom and doom" about the state's future, the report gives reason to be hopeful.

"We have much, much more reason to be optimistic than we thought," he said.

GrowSmart spent about $1 million on the project, and is planning a two- to four-year campaign to promote the ideas found in the report, Caron said.

George Smith, executive director of the Sportsman's Alliance of Maine, said the report zeroed in on many of the state's problems.

In particular, the sportsman's alliance -- the state's largest sportsman's organization with 14,000 members -- is concerned about uncontrolled growth and maintaining the state's quality of life, he said.

"Sportsmen are the first to lose when somebody builds in the woods," he said.

Smith said he'd like the state to do a better job promoting itself as a great place for inland fishing and believes the report provides some guidance about protecting special places, improving access and marketing.

Realistically, Smith said it's unlikely any of the candidates for governor will support all of the elements of the report. But he thinks one of them should.

"It's a thoughtful enough, comprehensive enough product, we need to commit to the whole thing," he said.

A major theme in the report is the "suburbanization" of the state, which is occurring rapidly in southern Maine and to a lesser extent, central Maine.

As an example, the report cites the central Maine town of China. With a population of 4,300 people -- up from 1,850 in 1970 -- per capita municipal expenditures are $638, two times what they were 25 years ago.

The report also criticizes how the state, and local school districts, make decisions on new school construction.

When new schools were built in Readfield and Windsor, taxpayers spent $16 million on new schools despite a loss in the region of 1,500 students, the report found.

Muro, one of the leading researchers, said he's done similar studies for Pennsylvania, Missouri and North Carolina. Among the states he's studied, Maine shows the most promise, he said.

"I was honestly impressed with the readiness to make links between the economy and the environment, prosperity and quality of place," he said.

He also thinks Mainers are ready for a change.

"There seems to be a real hankering to move forward and make practical changes," he said. "There does seem to be an impatience with gridlock in the state."

Gov. John Baldacci said he was pleased to see that the report pointed out that all counties in the state have experienced population growth. He also acknowledged that more needs to be done.

"They are building off the foundation we've created in terms of investments," he said.

Chris Jackson, a spokesman for Republican Chandler Woodcock, who is running for governor, said they support some of the ideas in the report and reject others.

For example, Woodcock does not support an increase in the lodging tax, but does want to lower the top income tax rate.

"We agree with many assessments about obstacles to a vibrant economy, including a government that spends too much money," he said.

Rep. Patrick Flood, R-Winthrop, said he was impressed that the report doesn't appear to have any strong political bent -- either Democratic or Republican.

"This report seems to be coming from a pretty balanced point of view," he said.

Susan Cover -- 623-1056

scover@centralmaine.com