Economic Development

Policy:
1. Energy Development Equals Economic Development
2. Renewed Commitment to Department of Economic and Community Development (DECD)
3. Better Coordination with Non-Government Economic Development Programs.
4. A Sustainable Maine Paid Family Leave Law
5. Expansion of the Maine Seed Capital Tax Credit Program
6. Vote Required to Change Maine's Minimum Wage Law

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Rationale:
China is developing 30 nuclear facilities. The United States is developing one, in Georgia, with some restarts and other opportunities under consideration. From a national policy perspective, this is a recipe for disaster. Maine will pursue the construction of natural gas fired plants in the short run, and examine nuclear as a long-term option following intensive research.  Why? For example, the USS Gerald R. Ford is an aircraft carrier equipped with two Bechtel A1B PWR nuclear reactors. The power generated from the reactors on this single ship can power a large number of Maine homes and businesses. Maine will pursue the potential of these mobile nuclear power units, which can generate an exponential volume of power as compared to solar. More in this under "Energy" policy, but for the purposes of this policy, the Libby Administration will recognize that power generation = economic development, and the increase in societal wealth is a function of economic  development.

 

Energy is needed to develop new jobs in Maine. BIW currently produces Zumwalt-class destroyers with integrated power systems. We need to equip BIW with more than clean power credits and the like. Maine will increase its generation capacity for business and industry as well as consumers, and companies that invest in Maine energy generation will be rewarded by the public sector with support, grants, trained labor, and other assistance.

The DECD is a forward-thinking department that has a wide array of economic development
tools. A renewed focus on the DECD will emphasize long-term investment in capital and
equipment.  Returns to ong-term capital investment can be enhanced with policy that is friendly to the investor.  For example, the Dirigo Business Incentives Program will place a premium on capital investment tax credits. Long-term investment in Maine requires capacity building, which means that the reward to job creation becomes baseline policy.

Paid family leave is a noble goal that is better addressed through following models such as the current New Hampshire law. New Hampshire’s program closely resembles other states that have established a state-sponsored voluntary insurance plan that provides wage replacement benefits to eligible workers for specified family and medical reasons. A narrower eligibility for the program will serve enhance the program while leaving employers whole. It will also create a better chance for the program's sustainability, which has been called into question.  Some states attract capital rather than scare it away. Maine businesses have been sounding the alarm regarding the unsustainability of the overly-generous benefits of the current Maine Paid Family Leave Law, and we need to listen to them, or we can expect them to incorporate elsewhere.

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The Maine seed capital program will be expanded to 50% of cash equity to help bring important
investment to the State.

Maine’s minimum wage law has outpaced other states increases, driving up the cost of doing business in Maine and causing closures of companies, particularly restaurants and other entities in the hospitality industry. Quick service and self service models have their place, but former owners of full-service restaurants such as the Muddy Rudder in Yarmouth, Bechard's Grill in Caribou and dozens of others that have closed citing financial challenges in the industry. The minimum wage cannot be tied to the consumer price index (CPI-W), since businesses need to be able to correctly forecast the coming year’s costs. The Maine Legislature should cast a vote on every minimum wage increase and leave at least one full year before approved increases become effective.  Leaving minimum wage increases to an annual inflation autopilot is a cruel treatment of Maine businesses.​