April 27,  2007   

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Economic plan draws varied local response

 
by Edward French        

     Five Washington County business people responded to a recent report and action plan on Maine's economy, which argues for cutting government spending while investing in an innovation-based economy, by stating that they are not waiting for the state or "a white knight" to come in and help. Instead, they are creating economic development on their own through community-based initiatives. The five panelists were part of the Business Owners and Policy Maker's Forum that kicked off the Washington County Business Conference and Marketplace. The forum was held April 19 at the University of Maine at Machias, while the conference and marketplace continued on April 20 and 21 at the Washington County Community College in Calais.
      Alan Caron, president of GrowSmart Maine, highlighted the findings of the recent Brookings Institution study of the Maine economy, noting that the same debate about large-scale projects, such as the LNG proposals for Passamaquoddy Bay, is occurring throughout the state. Also, Maine people are ambivalent about growth, both wanting it but not wanting the state to change. However, he said a new economy is emerging that is smaller and decentralized and centered around innovation.

      Among the drawbacks in the state are "a wicked attitude problem," with a high degree of pessimism among people, Caron said. Also, the state taxes and spends too much, with Maine being the second highest taxed state in the country and the state spending more on K-12 education than other rural states. Taxes are primarily being spent on the administration of government, he observed. Administration in state government and K-12 education needs to be streamlined, while investment in research and development should be doubled. He urged the building of a innovation-oriented, place-based economy that would rebuild Maine communities, protect the land and engage local citizens. He noted that boatbuilding is one of the best examples of the new emerging economy, but the industry presently lacks the workforce to grow.

      Noting that real change happens from the bottom up, he commented, "We can't wait for someone to ride in on a white horse to fix things." The essence of the Brookings plan is to cut government spending in order to invest more in an innovation economy. It recommends establishing a $190 million Maine Quality Places Fund to promote community revitalization, land conservation and high-quality outdoor recreation and tourism, along with a $200 million Maine Innovation Jobs Fund for research and development in scientific and technical fields and a Maine Cluster Development Fund to foster business-led partnerships that catalyze cluster-based job creation.

      Caron also warned that the divisions among people "are killing us" and the Maine brand is eroding. "If we become anyplace USA, we're in big trouble."

      The five panelists represented a diversified perspective on the county's economy. David Whitney of Whitney's Tool Shed in Machias said that the county needs infrastructure improvements, from roads and a regional airport to broadband Internet access. It also needs to support a diversified economy, including boatbuilding, agriculture, aquaculture and seasonal work, and needs to work on its image. Kristan Porter of Cutler argued that adding value to products in Washington County should be a top priority. He pointed out that nearly half of the state's lobster catch is harvested in Washington and Hancock counties, but much of the catch is processed in Canada.

      Noting that his business could employ 80 people instead of 40 if it didn't have to pay various government insurance costs, Lyle Guptill of Guptill's Logging Supply in East Machias commented that businesses could do much better if there was less government. "We're talking. When will someone do something about it?" he asked. "We're not talkers, we're doers." He added that the state "shouldn't throw money at things. You throw enough money you can float it, but it won't fly."

      Meg McGarvey of The Commons in Eastport advocated community-based development with people working together to improve the economy and not waiting for state assistance. Echoing her approach was Susan Corbett of Axiom Technologies in Jonesport, which is providing broadband Internet access in Washington County. She argued, "For economic development, we can do it. We just have to step up to the plate and take matters into our own hands." She added that Axiom has been able to grow "because we had the community behind us. We didn't wait for the government to come in."

      Asked about the drug problem in Washington County, McGarvey felt that involving children in the area's history, culture and economy would help empower them so they wouldn't turn to drug. Caron noted that the thread running through comments about the drug problem was that there needs to be a move toward greater personal responsibility. "We've gotten complacent about what our right is versus what our responsibility is." However, government has a role in developing basic infrastructure, such as roads and high-speed Internet access, he argued.

      Concerning the state's school regionalization plan, Caron said, "We're not fond of what the state has done to consolidate schools" over the past 30 years. Stating that communities have to be rebuilt and that schools are "the heart and soul of our communities," he said that GrowSmart favors keeping local schools. However, while the number of K-12 students has dropped 16% since 1983, the number of teachers has increased by a third and the cost of administration has increased by 54%. "Do we want local schools or do we want local superintendents?" he asked. Instead of closing schools, he maintained that administrative costs can be reduced.

      The importance of recognizing what makes the county and state unique was also emphasized. Marged Higginson of Eastport commented that, in a recent Eastport for Pride essay contest, a student had written, "I love Eastport because it's safe." Pointing out that many places in the country lack that degree of safety, she added, "Maybe it's up to us to make them realize it's a good deal, so they have pride of place."

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