The good news: Maine is spending a lot more on research and development. Mainers are better educated and are making more money.
The not-so-good news: Compared to the rest of the country, Maine incomes are still low.
“Definitely, with education, we’ve really made gains. In research and development we have, too. But so have other states,” said Michael LeVert, an economist with the Maine State Planning Office. “Other states have gone up more.”
In a report released last week, the Planning Office outlined the progress made since 2001, when it urged the state to improve two key economic factors – education and research and development.
It suggested boosting the percentage of Mainers with four-year degrees from just over 19 percent in 1998 to 30 percent by 2010. It encouraged a large increase in research and development spending, from $254 per worker in 1998 to $1,000 per worker by 2010. If those things happened, incomes could jump, according to the report.
Maine’s per-capita income was $23,596.
Since that 2001 report, Maine has improved higher education rates and research and development spending. By 2006, nearly 27 percent of Mainers had four-year degrees, a 40 percent increase over 1998. By 2004 – the last year such data were available – Maine spent $587 per worker on research and development, more than double the amount in 1998.
Maine’s per-capita income jumped to $33,722 last year.
But salaries in other states improved as well. Maine’s income leap wasn’t enough to move it forward in national rankings. It still ranks 35th.
“The goals were to improve, and I think we are improving,” said David Farmer, spokesman for the governor’s office. “But I wouldn’t characterize it as we don’t think we need to do more. We recognize that if we want to be successful, we have to invest in research and development, innovation and education. The good news is we’ve made some progress. But it’s not static. The benchmark changes.”
The Planning Office recommends the state do just that: Change the benchmark. It says a new target – 33 percent of Mainers with four-year degrees and $1,800 in research and development spending per worker – could raise Maine’s per-capita income to the national average or higher.
However, it shied away from suggesting specific ways Maine could get to that 33 percent and $1,800.
“In a different budget climate I’m sure we could think of a lot of things we should be doing. But given the climate, we hesitated,” LeVert said.
Farmer said Maine continues to move forward, despite tight budget times. Voters in November approved a $50 million bond for research and development, and those grants will soon be released. The state offers $50 college grants to babies born here, and the Harold Alfond Foundation will begin offering $500 to all newborns starting next year. Southern Maine Community College plans to open a new campus on the Brunswick Naval Air Station site.
“It’s a goal and it keeps moving, and that’s OK,” Farmer said. “You want to always be trying to get better.”
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