Cuts gives meaning to local control

The November edition of the Maine Townsman, the monthly magazine of the Maine Municipal Association, features an article entitled "Local Government is Major Employer" that celebrates the impact of local government as a stabilizing force in the state's economy. Note: I am a town councilor and believe in the importance of government. I also deeply appreciate the hard work of public employees. The question is: How many and at what cost?

Municipal and county governments have become the third largest employer in Maine (61,600) behind healthcare/social assistance (98,100) and retail (85,600). In some smaller communities, local government workers represent the largest segment of the workforce.

From 2000 through 2008, jobs in the private sector grew by 1% while positions in both state and local governments increased by 6%. In the same period, average wages in the private sector increased by 30.5% while those in local government increased by 30.8% and those in state government by 33.8%. As an aside, federal employees in Maine saw their wages grow by 44%! These figures do not include health and retirement benefits that tend to be far more generous in the public sector than in the private sector.

These statistics raise questions about the size, scope and cost of government at every level.

Maine economist Charles Colgan is quoted in the article as saying "The school funding formula is bringing into the community a lot more money than what is generated by the property tax. That's as important as a paper mill or military base."

The impact of government dollars spent in the community does have a stabilizing impact just as any stable revenue source would, but not in the same way as a paper mill. Government redistributes resources, it does not create wealth. It takes a tax dollar from one person and spends it on another. According to the data above, the cost of administering that dollar is rising faster than the private sector worker can afford to pay.

The article also says that Kit St. John of the Center for Economic Policy believes that local government is not as stabilizing as it could be because municipalities are not allowed to engage in deficit spending. He laments that local governments have responded to the current recession by laying off employees and curbing spending. He argues that such decisions "can completely mitigate the effects of the stimulus."

That attitude begs the question: How much is enough? Isn't there a point at which you have to put the shovel down and stop digging a hole?

If the governor and Legislature hold the line on broad-based taxes as expected and make deep cuts in state spending, the real burden of decision-making for those cuts will fall to town councils and school boards as they decide what they value most and least.

This suggests that you, your family and friends need to take extra care to elect local and state officials who are level-headed and experienced in making tough decisions. Who you elect really matters. To get the job done, we need more people with greater experience from the private sector. If that describes you, then you need to run. The work may not be fun but it will be rewarding - if we make the right decisions now.

Year-end appeal

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With your help, we can build a majority of Republicans and Democrats who will make Maine's economy their highest priority. Only by having a strong private sector will Maine children have the option of a prosperous life and career in Maine. THANK YOU SO MUCH!