Dear
Editor,
Republicans
are anxiously awaiting the release of Governor Mills’ first State budget. We
hope that it fulfills the Governor’s repeated promise, that it will provide “sustainable”
funding for the massive expansion of health insurance, especially for single,
able-bodied, childless adults, without containing new taxes.
Before
the details are released, it is important to reflect on where we are today and
how Governor LePage and Republicans have put Maine in the strongest economic
position it has seen in decades.
In
2010, Maine was teetering on the brink of financial ruin. As the incoming
Commissioner of the Department of Administrative and Financial Services, I
vividly remember the challenges that the new administration faced. Governor LePage
inherited an $800 million budget shortfall from his predecessor. Medicaid had a
biennial budget deficit of more than $200 million, and our state owed the
hospitals $750 million.
Governor
Mills begins her term with Medicaid on sustainable financial footing; it has
not run a shortfall in years, and we no longer owe hospitals money. Republican
leadership resulted in a $1 billion turnaround.
Maine
now has a record high number of businesses, record high worker participation
and record low unemployment. Wages have risen, fewer people are on welfare and
we have fewer children living in poverty.
Our
Budget Stabilization Fund (‘Rainy Day fund’) has a record level balance of
$272.9 million, equal to 8% of Annual General Fund expenditures, a ratio better
than the average among AAA credit-rated states. This is important in case there
is a future economic downturn,
Through
hard work and a commitment to living within taxpayer means, Republicans
delivered to Governor Mills a robust, growing economy, money in the bank, low
debt and a sound State budget.
We
must maintain a healthy economy that reaches even more people, including
working families and much of rural Maine. It is critical that we:
(1)
Avoid tax or fee increases. Lower taxes have produced more revenue for the
State budget. The most recent general revenue forecast by the Revenue
Forecasting Committee (the 2020-2021 biennium), has
been revised upward by $263.2 million (3.52 percent). This is another example
of how our economy has greatly improved over the last eight years.
(2)
Ensure that Medicaid expansion for single, able-bodied, childless adults has a
sustainable funding source that doesn’t take resources from Maine’s truly needy.
Taking one-time monies from the $21 million tobacco cessation fund is not wise
or sustainable, especially in the face of a youth vaping epidemic. We must also
recognize that the federal match continually declines, requiring additional
Maine taxpayer resources in future years;
(3)
Live within our means by setting priorities, so that we focus on the core
mission of government and not try to be everything to everybody. “When
everything is a priority, nothing is a priority.” We need to ensure that
Maine’s most vulnerable citizens are our first priority,
(4)
Avoid unnecessary debt that lowers our credit rating and increases our
borrowing costs. The State of Maine’ general obligation bond debt is currently
$376 million. Without hearing from the Governor, legislators have already
submitted over $1.57 billion in new debt requests. New debt requests are
increases every day. For the Governor’s budget to be sustainable going forward,
we must avoid a rapid increase in debt payments and the higher interest costs
that will result from a lower credit rating; and
(5)
Ensure that all budget decisions are transparent and provide data upon which
results can be measured. This is a concern when one party rule is combined with
a news media that is now sympathetic rather than skeptical of government
decisions. Taxpayers and citizens have a right to know how their money is spent
and whether or not it is efficient and effective.
When
the Governor’s budget is released and moves through the legislative process, it
is unclear what level of involvement Republicans will be given. In order to
meet the Governor’s promise of “One Maine,” Republicans need to be part of the
solution.
Republicans
will be willing partners in supporting the pro-growth economic and fiscal
policies that are producing results for all Mainers. We will oppose a return to
the irresponsible practices that left our bills unpaid, our accounts empty,
state employees working without pay, taxpayers financially strapped and an
economy in ruins.
Going
into 2019, our State’s economy and budget is sound because of hardworking
Mainers and Republican leadership. We will work responsibly to make it even
stronger.
Sincerely,
Rep. H. Sawin Millett (R-Waterford),
a farmer and former educator, represents District 71: Norway, Sweden, Waterford
and West Paris. He previously served six terms in the Legislature (104-105th
and 121-124th) and has a lengthy public service career that includes
service on the Joint Standing Committee on Appropriations and as Governor Paul
R. LePage’s Commissioner
of the Department of Administrative and Financial Services.
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