Are the wheels coming off the Baldacci Express?

Portland Press HeraldSunday, May 15, 2005 “Hey, Big Spender...” Are the wheels coming off the Baldacci Express?Maybe not, but the iron juggernaut that was John Baldacci's governorship when he was elected in 2002 is leaking some steam. A recent national survey by SurveyUSA of all U.S. governors put Baldacci in 39th place, with only 37 percent of the 600 Mainers polled giving him a "favorable" rating. A full 55 percent viewed him unfavorably, with the rest undecided (the poll had a 4.1 percent margin of error). Previous polls in Maine have given Baldacci high ratings, well above the 60th percentile. And while polls may vary, it's clear that any honeymoon period the governor had now has come to an end. Baldacci's election initially fueled high expectations from Democrats. He had served four terms as Maine's 2nd District congressman, and was the first of their own to occupy the Blaine House since Joe Brennan left it in 1986. He was also praised by some conservatives (including myself) who trusted that his table-pounding insistence on holding the line on taxes meant he wasn't just another tax-and-spender. Now we've found out he's a borrow-and-spender instead. Indeed, on a number of issues Baldacci is showing himself to be a much more ordinary Democratic politician than many thought he would be. His vow on taxes has been destroyed in part by his recently released "tax reform" plan, which wipes out indexation on income tax rates. It will automatically hike taxes by the rate of inflation every year, and no lawmaker even has to vote to do it once it's in place. Promising to reduce the state's 8.5 percent top tax rate by a humongous 0.05 percentage point next year doesn't quite balance things off. He may have had good intentions, but Baldacci appears to have become the Ado Annie of Maine state government: He's "just a guy who can't say no" when it comes to state spending, despite complaints about minimal "cuts" to some current programs. Scott Fish is a writer who runs a conservative Web site, asmainegoes.com. As he points out, "Democrats see government as the sole guardian of almost everything that's good in society. Where you or I would think that a dollar left in somebody's wallet would support a business that would create jobs to meet needs for food, shelter and health care, liberals think that is government's task. So, they are entitled to take all the money they want from taxpayers." As a result, Maine has, for the first time ever, closed a budget gap by borrowing the staggering sum of $450 million, much of it to pay current state bills. Responsible? Not hardly. Here are other areas where Baldacci seems to be losing his way: Expansion of gambling: Baldacci, like his predecessors, often says he opposes the expansion of gambling. Yet, he hasn't spoken out on a bill that would plop 1,500 slot machines down at a new Indian-run racino in Washington County. That would double the number planned for the state - and effectively cancel any arguments against placing others anywhere in Maine. The bill has gotten the anti-gambling movement exercised again. As Casinos No! said in a memo to its members last week, "We have been inundated with calls and e-mail requests to join the effort to repeal slot machines altogether. Many of our members - from southern as well as northern Maine - are angry and upset that the Legislature has ignored the will of voters who have consistently rejected slot machines at locations other than existing racetracks. It's clear that the spread of casino gambling in Maine will continue despite strong and growing evidence of its destruction to families, businesses and individuals." They got that right. If Baldacci vowed to veto the bill, he might halt the effort to turn Maine into Las Vegas East. But he declined to comment on a potential veto last week, and the measure is moving forward with significant legislative support. Property tax relief: It's hard to find a fiscal expert anywhere in Maine (outside the ranks of government or those who do business with it) who thinks that anything the Legislature has done to date will produce a significant, long-term reduction in local property taxes. As William Becker, head of the Maine Heritage Policy Center, a conservative think tank, notes, "L.D. 1, the new state budget, once contained a requirement that 90 percent of new aid to communities be passed on to taxpayers, but that provision was stripped from the final version." He says that most towns and cities "will spend all of their state aid, and probably more." Based on what happened with the homestead tax exemption, where many communities hiked taxes enough to wipe out its benefits after only a couple of years, he has reason to be confident. Tax policy overall: So far, few Democrats have shown any true concern over the fact that Maine has consistently ranked at or near the top of U.S. per capita state and local tax burden. Becker points out that "states compete for businesses at the level of tax policy, and Maine is one of the least competitive states in the nation." There are social justice issues here, too: Families of four making up to $39,000 qualify for the state's Dirigo Health care program, for example, but Becker points out that "the state's top tax rate, 8.5 percent, kicks in at $17,000. Why are we taxing people who qualify for assistance in health care at the highest possible rate?" Meanwhile, Mary Adams, an activist with one tax-defeating referendum notched in her belt - repeal of the statewide uniform property tax - is gathering signatures for a Taxpayer Bill of Rights that would cap spending, require supermajority votes for tax hikes and return "excess state revenues" to the people. Republicans are investigating the petition route themselves, to strip the $450 million in current-spending bonds out of the budget. Democrats squeal about the GOP failing to provide an "alternative," but turned thumbs down on a proposed 5 percent across-the-board spending cut. I guess it wasn't the one they wanted to hear. Finally, Wall Street bond-rating firms have put the state on a "watch list" because of its fiscal problems. Democrats blame the GOP's referendum idea, but Republicans point out that status was initiated in February, before the deficit-heavy budget was approved. Dirigo Health and MaineCare: The state's two principal health-care initiatives are growing quickly. Many conservatives see these as incremental steps toward single-payer health care, similar to the Canadian system. On a trip to Canada last month, however, I found the front pages of the national papers full of stories describing the dysfunctions of that system, with delayed care a routine event. A return to private care is gaining support, and the province of Quebec is even initiating a privatization movement despite the fact that federal law nominally forbids it. Meanwhile, Heritage's Becker notes that "Maine was given $53 million by the federal government to fill in the gaps in its present health care system. So what did it do? It created a whole new spending program that will drain money as far out as the eye can see. And that's on top of a commitment to fund education at the 55 percent level that will add at least another $250 million to the next biennial budget on top of this one." Down the road, as health care bills pile up as they have in Canada, count on "global budgets" being forced on hospitals to impose the costs of ever-expanding care on providers. You're going to love the waiting lines to see a doctor. Bring plenty of aspirin. Activating social conservatives: With the possible exception of gambling, Baldacci could not have picked a more effective issue than gay rights to juice up the relatively moribund social conservative movement in Maine. Social conservatives had confronted all the arguments on this issue twice before and won each time in the court of public opinion. If there was one topic they had every right to think was settled, it was this. Yet, gay rights supporters in both parties intentionally ignored the people's will on this matter, and now social conservatives are energized and ready to take on the once-popular Democratic governor. Even in the face of this, Baldacci might have salvaged his reputation for moderation if he had kept his no-tax-hike pledge. But it was the wrong one anyway. Maine needs a tax-cut pledge, and whoever runs against him in 2006 should certainly offer one. Former Goldwaterites like me call that a choice, not an echo. -end-
VALUE ADDED AUDIO HERE[ 05-16-2005: Message edited by: www.MaineGOP.com ]

As Maine's bond ratings crater, taxes & fees continue to skyrocket, businesses and new graduates continue their exodus, it is possible that the residents may think something is amiss. Yeah right, who am I kidding?

quote: As Maine's bond ratings crater, taxes & fees continue to skyrocket, businesses and new graduates continue their exodus,

I don't think that the people in Augusta have yet to figure out that they should start adding the "Baby Boomers" to that list. They are starting to retire and they are leaving also. The Young AND the "not so old" are both leaving!!

I think I've decided the 2006 election will be the decider for us. I'm not prepared to move much sooner than that.Between the towns' widespread abuse of the supposed tax relief, profligate spending in the face of clear unrest, and the lies and deceit going on in Augusta, we have to be in an income redistribution death spiral.

What has anyone heard about possible primary opponents for Baldacci? Chellie Pingree and Steve Rowe have been mentioned as potential challengers.

I don't think Chellie or Rowe are stupid enough to risk losing party support. Baldacci is the candidate. Any challenge in the party will not get national support and would weaken Baldacci further than he is doing on his own. I would encourage both to run against him though.

To hell with the Democratic primary... how about Republicans and Independents?

Flyer....the wealthy moving into Maine aren't like you and I....they can have their 'residence' in florida or Arizona with their winter home, and shelter their income from Maine's tax predators. Surprised to see large advertisements in the Tampa and Sarasota papers urging winter visitors to take advantage of being Florida residents to shelter their assets and retirement portfolios. Live in Camden/Rockport; keep a cheap condo in Florida and HAVE YOUR LEGAL RESIDENCE IN FLORIDA!fjh.

Chellie Pingree? LMAO. Her campaign against Collins was dreadful. Steve Rowe is too much of a nice guy to get into a down-and-dirty primary against an incumbent.

quote:Originally posted by FJH:
Flyer....the wealthy moving into Maine aren't like you and I....they can have their 'residence' in florida or Arizona with their winter home, and shelter their income from Maine's tax predators. Surprised to see large advertisements in the Tampa and Sarasota papers urging winter visitors to take advantage of being Florida residents to shelter their assets and retirement portfolios. Live in Camden/Rockport; keep a cheap condo in Florida and HAVE YOUR LEGAL RESIDENCE IN FLORIDA!fjh.

Interestingly, I heard that USM Dean interviews included at least one candidate who indicated that if hired he would not become a Maine resident... that he'd be maintaining his residency in Texas... wasn't about to pay Maine taxes on settlements being paid over time for work done in Texas.

In regards to the title, I seriously doubt that the wheels of the Baldacci Express were ever attached.Tru

Perhaps that's why they supported HR1 an effort shift away from property taxes over to sales and income taxes.....hmmmm, I see why they're rich!