Legislative Update: End of session thoughts

Having won a special election in February I entered the 124th Legislature as it was just gearing up. The economic news was as bleak and dreary as our skies have been in recent days. Maine’s government faced falling revenues and increasing expenses. The only bright spot was the stimulus money that Washington was printing and promising.

The result was quite interesting. The lack of money began to breed bi-partisanship and efficiency. After all, there was not much to argue about if our agenda was headed with spending cuts. It had to be. There was no other choice. This became very apparent when the leadership of both parties told us that if any bills had fiscal notes attached to them then to forget it, they would be voted down or die on the appropriations table due to lack of funds. What that meant immediately, in raw terms, was that the number of bills proposed dropped by a third.

“No new spending,” “nice idea, another time,” “we would love to help but can’t;” these quotes echoed the halls of state government. This was both liberating and frustrating.

The governor, in his State of the State address, set our agenda to cut over half a billion dollars from the budget and retain all essential services. At session closing he reminded us of this and thanked us for doing it in a bi-partisan manner. What I wanted to ask though is why could this not have been done years ago and the savings used to pay the money owed to our schools or fix our roads? What could $500 million a year do to fix the infrastructure or pay down our bond debt?

The good news is that the current budget is $500 million less than its predecessor; the bad news is far too much of the federal stimulus was used just to plug holes and that will not be there for our next budget. This reliance on a one time fiscal transfusion will haunt the next Legislature when that transfusion can’t be relied on. Current revenue projections are very volatile and there is no expectation that they will rise in the next couple years.

The part I am most proud of was my work to reduce the size of the Legislature and in getting a deal with state workers to accept paying a share of their health insurance. While we failed to reduce the size of the Maine House, we came closer than anyone in the last 160 years, with just seven votes shy of the two-thirds needed. With the state workers health insurance the state will see an annual structural savings of four to six million dollars. I drove home thinking maybe I had earned my keep after those efforts.

On the downside a tax reform package was passed that I believe will increase our tax burden. It will certainly increase taxes on the poor and elderly living on social security. The new taxes will cover a range from car repair and haircuts to going out to eat. Contrary to claims made by its supporters, I doubt that this is going to reduce taxes on Mainers and transfer it to out-of-staters. That is why I opposed it.

I left session Saturday morning at 2:30 a.m. knowing I had given my best. I kept my promises not to raise taxes and to work with all sides to reduce spending and try and create a better business environment.

Lance Harvell
Rep. Farmington and Industry