The Doyle Report
by Jon R. Doyle

The DOYLE REPORT - March 2010

The Legislature is proceeding apace and it should be commended in its totality for its deliberate and intelligent look at cuts which it is being asked to make.  It collectively and through its committees, especially those that deal with social services problems like the Health and Human Services Committee and the Appropriations and Financial Affairs Committee, is genuinely concerned about the plight of Mainers who will lose needed services. 

We're really at a point where there will be some serious damage done if some of those social services aren't funded.  It has rejected the concept of across the board cuts with the desire to look at particular programs and see which are the most critical.  Some additional monies have surfaced; as have some ideas for further funding; but in the belief of many, those ideas like an alcohol tax, a tobacco tax, or other funding don't work because of the widespread opposition to taxes. 

I'm not so sure.  The Legislature is taking a hard look at a provider tax which allows it to maximize the federal match of social services dollars.  I think what's going to happen is that there will be some attempts to raise taxes; some serious discussion, perhaps even some incorporation of those additional tax revenues in projections and programs and the Legislature in its totality will grapple with the issue.  The Governor has said that he doesn't want any new taxes; many Maine people have said that they don't want any new taxes; but many services like crisis services for mental health do need to be funded. 

My thought is that we'll get a budget.  There will be some suggested new taxes; (We'll have some arguments over that!); the Legislature will run some of those ideas and see where they come out.  Then, depending on whether they pass or not, legislators will talk with this administration to see their feelings; and, if the administration holds tight, perhaps even vote and deal with a veto situation.  That means, I think, that the Legislature is going to last longer than they originally thought and gubernatorial campaigns are going to have to start taking some positions on tax increases.

The number of candidates for Governor now stands at more than twenty and we've had an opportunity here to interview several more since my last report with more to come.  We spent some time recently with Rosa Scarcelli who has a solid business background.  She is bright and engaged.  In the long run, I think she's going to be a true factor in the Democratic primary.  She joins some very bright competent people running for Governor and has raised a very substantial amount of money.  I also had the opportunity to talk with Les Otten and Paul LePage, two Republican candidates for Governor, who bring substantial business experience to their candidacy.  Les Otten, you will recall, is the former head of Sunday River and Sugarloaf ski areas and is engaged in a number of business efforts and Paul LePage is CEO of the iconic Marden's and Mayor of Waterville.  They are both bright and engaged people with lots of ideas. 

The Tea Party and it's effect on the Maine elections is yet to be determined and, even if it is not a large factor here, people generally are not happy with government and I think there's going to be a substantial backlash against incumbencies generally. 

One of the most troublesome pieces of economic news recently was the announcement of the intended closure of the sardine plant in Prospect Harbor.  It's the last of what once were hundreds of plants on the coast.  The owners say there are not enough sardines.  They may or may not be right, but they put 150 Maine people out of work without real prospects of finding a new job.  The action is, at least in part, attributable to a reduction in herring landings.  One needs to remember that those same herring are used also as lobster bait.  Some of the excess from the plant is used as lobster bait, but the amount of herring actually needs to be split between the cannery and Maine's lobster fisheries.

There was news in MaineBiz this week that the Legislature is carefully looking at the piece of legislation having to do with the Quality of Place.  Can one say untimely?  We seem to look at, fuss over, take seriously, the need to form Maine's future which under normal circumstances is a great idea.  When, however, there is no future or the future bulb has dimmed, what are we doing?  Maine's economy has never been worse and yet we're talking about Quality of Place. 

We ought to be focusing like a laser beam on the problems that are being experienced right now in Prospect Harbor with the loss of 150 jobs.  Stinson Canning, as everyone should know, is a valuable resource for 150 Maine people who need jobs in an under-jobbed area.  I'm sure that state government is working on it.  The Governor is; I'm absolutely sure that local legislators are working on it, and all of our Congressional delegation is, but where are the rest of us - why isn't the Legislature taking the leadership to put together a group to see whether we could be of help?  Why aren't they, as a group of political leaders, taking advantage of a meeting called by the Legislature to meet with the current owners and their leaders?  Why isn't the Legislature leading the charge? 

I know we've got budget problems and we're focusing on those.  We ought to focus on these problems to the exclusion of lots of other stuff.  We can't rely on the usual mechanisms to help this community - local businesses are going to be impacted very severely, but we can't stop talking about the Quality of Place and what Maine's going to be when it grows up.  At least the Congress, which is a moderately functioning group right now, holds some hearings to ask the manufacturers of a certain make of automobile what went wrong. 

Why don't we hold some hearings?  We could do that with one of the standing legislative committees such as Business, Research and Economic Development with legislative leadership participating.  Let's involve the Marine Resources Committee.  Why don't we ask Bumble Bee, the current owner of the plant, what they need for help?  It may well be that the natural resource is depleted, but they were functioning up until now.  Why don't we involve the lobstering community which needs bait from the plant? 

In short, why aren't we up and flying on this issue right now?

Jon R. Doyle