MAINE Maine is a top ten state in all three infrastructure measures, including the highest share of broadband connections in the nation over three megabits per second. companies created the Three Ring Binder project, a dark telecommunications infrastructure needed to serve the state’s business, academic, and telemedicine needs. The network is funded with federal and private sources.
Cuts and More Cuts Maine’s Governor Paul LePage has proposed eliminating in 2012 the state’s alternative minimum income tax. He would also lower the top income tax rate for income above $50,000 from 8.5 percent to 7.95 percent. In 2014, he would also double income exempted from the state’s estate tax from $1 million to $2 million. These proposed cuts would cost the state $203 million in the coming two-year budget cycle and would widen the two-year budget gap by 25 percent, dropping the top income tax rate to its lowest level since 1975. One of the most pressing concerns in Maine is the $4.4 billion unfunded liability in the state pension system. Without reform, payment for pension liabilities will total That is 15 percent of projected general fund revenue. Within ten years, the total annual cost to taxpayers will be more than $700 million. The governor’s budget called for changes to the retirement system that would save $524 million over the current biennium, with most of the savings accruing to the general fund. Governor LePage argues that over the longer term, these changes would reduce the state’s unfunded pension liabilities by $2.5 billion, reduce retiree health liability by almost $1 billion, and keep almost $7 billion in Maine’s private sector economy through 2028. Recent estimates put the state’s budget gap at $164 million. Proposals to close the gap, some of them controversial, have included include cutting health insurance coverage for childless adults who qualify for Medicaid to save $35 million; reducing the tax cut package by $4 million; taking $30 million from the rainy day fund; booking $16.8 million in federal aid for a computer billing system; cutting $10–20 million in transportation funding; eliminating 259 vacant state positions and cutting $2 million in funding for the Maine Public Broadcasting network. 64
Maine’s Place in the Rankings 1st
High Speed Broadband Intensity
4th
Small Business Lending
7th
High Speed Broadband Availability
8th
Transportation Infrastructure Performance
12th
High School Advanced Placement Intensity
13th
Short-term Job Growth
19th 20th
Per Capita Income Growth
22nd
Entrepreneurial Activity
25th
Comprehensive Incentives Maine offers a wide range of funding assistance programs to businesses of most sizes and areas of expertise. From of Maine is working to position itself as a partner in long-term business growth and success. To accomplish this, the state has developed several programs that offer what the state terms “comprehensive incentives.” These programs include progressive tax reimbursement policies and a nationally recognized Community Development Block Grant program that provides funds to projects like infrastructure development. The Pine Tree Development Zone (PTDZ) program offers eligible businesses the chance to greatly reduce or virtually eliminate state taxes for up to ten years. The program’s goal is to create quality jobs in targeted industries and support new or expanding Maine businesses, as well as businesses relocating or establishing a Maine
presence. Targeted industries include biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, precision income tax credits, insurance premium tax credits, Maine payroll and property tax credits, income tax reimbursement, and several sales and use tax reductions and credits. The state also offers assistance and support in bolstering innovation-based technology businesses. The Maine Technology Institute (MTI) is one element of the state’s economic development strategy, which contributes to the long-term development of a statewide research, development and commercialization infrastructure.
community-based health care providers with specialists in major metropolitan areas, and allow quicker, more accurate diagnoses and care for health-related problems. The Three Ring Binder project is being executed as a public-private collaborative effort between the internet provider Great Works Internet, multiple other commercial service providers (including Pioneer Broadband), and the University of Maine system. Multiple levels of service will be provided by the various entities involved. The higher education and government locations will receive 100 Mbit or gigabit level services from NetworkMaine, a partnership recently created between Maine state government and the University of Maine system to operate the MaineREN backbone and the Maine School and Library Network. Commercial broadband providers will be able to gain Use agreements or other leasing arrangements.
offers capital and commercialization assistance for the research and development of innovative, technologybased projects that create new products and services and generate jobs in the state of Maine. This effort offers research and development projects, and in collaboration with State University Innovation Centers, fosters innovation in life sciences, renewable energy, and advanced materials. The state relies on excellent research facilities including Jackson Laboratory, the Gulf of Maine Research Institute, Mount Desert Island Biological Laboratory, Bigelow Laboratory, and the University of Maine’s AEWC Advanced Structures and Composites Center to provide commercialization and technology support and assistance.
The Three Ring Binder Broadband Project The Three Ring Binder is a $32 million project that will the most rural and disadvantaged areas of the state of
These efforts will solidify Maine’s current top ranking for high-speed broadband intensity and seventh place position for high-speed broadband availability. The 1,100 miles of care system, but will also positively impact academia and small business alike, providing a competitive advantage in meeting the the state’s ongoing connectivity needs. This service to more than 100 rural Maine communities with 110,000 households, 600 anchor community institutions, and 38 government facilities that are not served today.
Clusters in Maine Largest Cluster: Biomedical/Biotechnical (Life Sciences), 75,372 jobs Largest Growth Cluster: Biomedical/ Biotechnical (Life Sciences), 9,520 new jobs since 2002
available for broadband service providers in order to bring cost-effective, high-speed broadband services to areas that do not have access to it today.
Most Competitive Cluster: Chemicals & Chemical Based Products, 1,227 new or retained jobs due to state competitive advantage
The project will also improve the reach and effectiveness of Maine’s rural health care system, by providing
Most Concentrated Cluster: Forest & Wood Products, 2.32 times the national concentration level
improve health awareness for impoverished communities in Maine, allow more immediate contact with clinical health care specialists, increase the collaboration of local 65