5/27/99
mbrown@agate.net
Should a $70 million one-time sales tax bonanza be dedicated to only one segment of Maine society? Apparently two state bureaucrats and a quasi-governmental authority believe so.
Both the office of Public Advocate, an agency of the executive department, the State Housing Authority and State Treasurer Dale McCormick are signatories to paid advocate advertisements.
All three joined several Maine organizations supporting LD 1500 which takes all the money from the previous sale of utility generation assets, and all in the future, and creates the Electric Consumer Trust Fund to help low-income consumers only to pay their electric bills.
It's understandable that MSHA would rally for the bill. This is the agency that would receive and steward the millions most probably with a hefty overhead charge. The public advocate's office is a misnomer and more questionable in this situation. There is nothing in the authority of that office that allows it to become an advocate of prejudicially dedicating all ratepayer's money to just one section of Maine society.
But it's the name of State Treasurer Dale McCormick signing on to the widespread spin ads that is the most bothersome. McCormick's entire tenure as treasurer has been one of partisan activist advocate working as a state employee for private issues outside the bounds of her office and authority.
It was McCormick early in her first term that advocated increasing the bond retirement schedule from 10 years to 20 and issuing $40 million more in bonds. The increase in interest payments would have been enormous. Her financial expertise was questioned as it should have been. For years, the state has been on a "10% rule" whereby the amount of new bond issues must be 10% less than those bonds retired. Over the years that has caused enviable bond attrition and decreasing bond debt.
(Incidentally, the various land purchase schemes floating about the State House would blow that 10% rule right out of the water.)
In March of this year McCormick came out with her grandiose scheme of issuing $500 million in new bonds backed by a portion of Maine's yet-to-receive-a-dime $1.507 billion tobacco settlement money. This McCormick financial big head safari was first reported in the Wall Street Journal not the Maine press. The WSJ reporter quoted McCormick as saying she "had been working 90% of my time over the past month on this project."
McCormick will have to join the long queue lining up for the tobacco money. And don't be surprised if before the current legislature adjourns it will post those $1.507 billion clams to state books for future partisan chowder programs.
This partisan activist state treasurer also sits on the board of the Maine State Housing Authority which is the pass-though agency for the $70 million sales tax "windfall." A reminder, if one is needed, is that Maine is unique in essentially and politically appointing its constitutional officers such as state treasurer by strictly partisan, not expertise, grounds by the majority party of the legislature.
LD 1500, which locks away the $70 million was sponsored by Majority Floor Leader Michael Saxl of Portland. Its co-sponsors include Sen. Carol Kontos, D-Windham; Sen. Richard (Spike ) Carey, D-Belgrade; Sen. Betty Lou Mitchell, R-Etna. And representatives Don Berry, R-Belmont; Patrick Colwell, D-Gardiner; Thomas Davidson, D-Brunswick; Richard Kneeland, R-Easton; and Kenneth Lemont, R-Kittery.
Joining the ad spin also is the Maine Chamber and Business Alliance. Perhaps the chamber officials are not aware whose money they want to dedicate to a feel-good special fund. Maine's per capita energy expenditures rank around 7th in the country at $2,290 where the national per capita expenditures are $1,962.
And where electricity cost for Maine industrial users is the 10th highest in the country at about $19.48 per million Btu's. The national rate is $13.68 per million Btu's.
The high cost of energy in Maine should be addressed by using the $70 million to help create alternative energy sources like hydro rather than diverting the "surplus" millions to only one segment of utility users.
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