Our economy rises or falls with the private sector job market.

This year, much of the political news in Maine will focus attention on improving the business climate and reducing the tax burden on our businesses and citizens.

Maine is plagued with the highest tax burden in the nation, at 13.5 percent, compared to New Hampshire, at 7.6 percent. The tax burden has discouraged new businesses from moving to Maine and, in some cases, businesses have packed up and left. Recent legislation regarding the Business Equipment Tax Reimbursement program will lower the tax burden on businesses, but will also decrease the tax revenue for municipalities after April, 2007.

For decades, in America, we have heard politicians promise to decrease the size of government and the heavy burden on our taxpayers, but federal and state government have each ignored the need to downsize. In most cases, they have increased spending and created large deficits. Often, they have reduced spending at the expense of worthwhile social services, while maintaining large overhead organizations and expanded government regulations.

Maine’s excesses are realized in many of our cities and towns. There is a need to focus attention on the differences between private sector jobs and public service jobs. The state and local municipalities should operate in a more businesslike way.

All successful economies are driven by the availability of good-paying jobs. An economy will rise or fall, in step, with the private sector job market.

Communities are heavily dependent on the private sector businesses to provide the jobs to create the tax income to support the public service organizations. For instance:

• Although public service jobs provide income to a segment of the local population to purchase goods and services from the local businesses and they pay property taxes into the municipality (their employer), their income is funded primarily by the taxes paid by the local businesses and other taxpayers. These jobs must support the significant advancement of the municipality (critical service levels and economic development) or face serious scrutiny.

• If a community can predict a general decline in its business tax revenue without a corresponding predictable increase in one or more comparable donor businesses, it must prepare for a reduction in local tax revenue.

• When a private sector business decides that it must downsize, it has workforce reduction. Municipal businesses must understand that it is the way of life in the 21st century.

• Increasing the property taxes and fees should be an unacceptable option.

• State and local elected officials must understand the need to support the growth and profitability of the businesses and be prudent when tempted to add more public sector jobs paid by taxes.

• Employers must communicate effectively with their employees to ensure that they are working toward the same success measurements (good paying jobs are available only when businesses are successful).

Len Greaney of Rumford is a retired manufacturing engineer manager. He is seeking election to Senate District 14.