What is the cost of government inaction in fiscal policy? The 2007 Maine Economic Growth Council report indicates that over the past few years, ambivalence on the part of the current administration has inflicted a staggering blow on our jobs and businesses.

Gov. Baldacci, year after year, prides himself on balancing the budget without increasing broad-based taxes. Not only are his claims inaccurate, they do little to improve Maine’s lackluster economic performance.

While Augusta balanced the budget through hidden fees and by borrowing hundreds of millions of dollars, it failed to do something far more important: lower taxes and create more efficient healthcare. According to the Growth Council report, from 2004-2005, Maine not only experienced zero job growth, it experienced a drop in GDP growth from 4.7 percent to 1.3 percent. On average, 5.8 percent of Americans hold more than one job. In Maine, that figure is a startling 7.8 percent.

While the governor’s plan to reduce property taxes is admirable, the methods by which he achieves his goal are problematic and threaten local control. Furthermore, simply reducing property taxes is only part of the solution. The state government must take a serious look at the oppressive regulations and corporate income taxes that are scaring businesses away from Maine, as well as inefficient healthcare programs such as Dirigo Health that the governor has continued to prop up. Otherwise, we may see even more frightening numbers in next year’s reports.

Dan Bolling, Otisfield,

Chairman, Oxford County Republican Party