Several bills have been passed that will have an economic impact on the people of Maine.

As a freshman legislator, I have no experience for comparison, but according to seasoned veterans and news reports, the Baldacci administration and the 121st Legislature have set a record for major legislation enacted this session.

I would like to offer a brief comment on a few of the bills that have an economic impact on the people of Maine, and specifically on the people of my district and central Maine. Obvious are the Dirigo Health Plan, the community college system change, the Pine Tree Zones and the bond borrowing initiatives.

Some people I talk with want to rip the Dirigo Health plan apart. Some of the comments are “it will go bankrupt,” “I don’t want to pay for other people’s insurance,” “Dirigo is competing with private insurance providers.” It is vexing that some people condemn the plan without knowing the facts. The Baldacci administration and Trish Reily have put forth a first-in-the-nation, bold plan. It will take time to build and create, but let’s get behind the plan and make it work.

Dirigo Health will insure 31,000 people during its first year of operations, beginning July 2004, and will provide access to coverage an estimated 110,000 folks by 2009. Coverage will be available to uninsured individuals, businesses and municipalities with 50 or fewer employees, and people who are self-employed.

The plan offers affordable premiums and subsidies to individuals and families on a sliding scale based on ability to pay. Single people with income of $27,000 and a family of four with an annual income of $55,000 will qualify for a discounted premium. Benefits will be derived and more stable rates provided by participation in a larger group.

Coverage is offered through private health insurance carriers to provide a comprehensive package of benefits and will pay providers at private insurance market rates.

Changing the technical college systems to community colleges will ensure affordable higher education, and produce class credits that can be transferred to other schools and programs.

The Pine Tree Zone creates eight tax-free zones for business in Maine. Androscoggin County is one of those chosen. The revenue is one of the benefits derived from the bond package passed in June. The $60 million bond passed in June 2003 will garner $143 million in federal and other private matching funds. This brings the total up to $200 million, which will create 4,000 jobs and stimulate the economy.

The governor will present another bond package this November. I invite my fellow Mainers to follow our governor’s bold lead in passing this package. There is no better time to borrow money. Interest rates have not been this low in more than 50 years. At 2.79 percent, it is economically prudent to invest in our state.

As of May 31, 2003, Maine has $296.7 million in outstanding general obligation debt. Outstanding bonds are those that have been issued by the state treasurer. General obligation debt is the tax-supported debt that must be approved by voters. These are the types of debt that are paid with tax dollars and it breaks down to $528 of debt per person, well below the U.S. average of $810 per person. In addition to Maine’s low debt ratios, Maine also repays its debt in 10 years – the shortest repayment schedule of any state.

Maine practices very careful debt management, as can be seen by the low amount of debt, the low debt per capita figure and the rapid repayment schedule. Maine is rated by all three major rating agencies. Our ratings are Aa2, AA+, AA+ by Moody’s, Standard & Poor’s, and Fitch, respectively. In their recent publication on Maine, Standard & Poor’s wrote that the AA+ long-term rating “reflects the state’s favorable debt position, with a low debt burden and rapid amortization [repayment] schedule.”

Maine has a debt control formula called the 5 percent rule. The state keeps its yearly debt payments on all tax-supported debt at or below 5 percent of general fund and highway fund revenues.

People in Lewiston-Auburn are on the brink of an economic breakthrough. We are looking forward to the renewal of our downtowns, the upgrading of our “gateways,” the development of the intermodal project in Auburn, our new courthouse, L-A Arts and expected expansion of Lewiston-Auburn College, to mention only a few.

Margaret Craven is freshman state representative from District 88, which is a part of Lewiston.

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