AUGUSTA – A comprehensive review of the state’s economy released in October by the Brookings Institution recommended aggressive investment and a new economic development strategy for Maine.

On Tuesday, Gov. John Baldacci appointed a group of state leaders to use the report as the basis for specific recommendations about where and on what the state should focus its limited investment dollars.

Called the Council on Jobs, Innovation and the Economy, the group has been tasked with moving quickly and developing almost immediate – at least by Augusta’s standards – recommendations that would be presented during the upcoming Legislative session.

In its report, “Charting Maine’s Future: An Action Plan for Promoting Sustainable Prosperity and Quality Places,” the Metropolitan Policy Program at the Brookings Institution recommended almost $400 million in new bonding for economic development and research, a restructured state tax system and cuts in government spending of $100 million a year.

The council, which Baldacci created by executive order, will focus on two particular areas from the Brookings report: innovation and cluster developments.

“We have come far, but we must take the next steps to provide opportunity in the years to come,” Baldacci said. “The Brookings report has offered us a road map. Now is the time to develop an action plan.”

The group’s goal will be to identify sectors of Maine’s economy that hold the best promise for future growth, Baldacci said, and make investments to help them grow.

“We need to put more definition on those recommendations and be able to define them more,” Baldacci said. “It’s action-oriented.”

Baldacci appointed Karen Gordon Mills, the managing director of Solera LLC, a New York-based venture capital fund, to lead the group, which will meet for the first time on Wednesday.

“The Brookings report showed us that we have enormous opportunity in the state,” Mills said.

Baldacci said that he will present an economic development bond package to the Legislature this year, but said no amount had been placed on it yet.

While Baldacci is embracing the investment focus of the Brookings report by creating the council, other recommendations from the 18-month study will be considered separately.

Among other things, Brookings recommended an increase in the state’s lodging tax as a way to fund some of the new borrowing it proposed and also said that state government should be cut by $100 million a year. It also proposed lowering the top income tax rate from 8.5 percent to about 8 percent.

“We have to integrate the ideas into our process,” Baldacci said. “For example, in the budget, we’ll be proposing administrative reductions.”

As for the taxes, Baldacci said his first priority – above all else – is property taxes.

“The message is loud and clear,” Baldacci said. “The people want property tax reform and property tax relief. … I’m going to be asking the Legislature to deal with that issue and get it before Maine voters as soon as possible.”

Baldacci is proposing a constitutional amendment that would cap the increase in valuation for year-round Maine residents. The proposal needs two-thirds approval by the Legislature and then would have to be sent to voters.

“I want to start with property taxes first, because I believe that’s what our citizens want,” Baldacci said.