Maine business groups push for $25M borrowing plan
(The Center Square) — Business leaders say Maine is falling behind other Northeast states in spending on research and development to attract new employers, which is hurting the state’s economy.
They’ve launched the “Invest in Maine’s Future” campaign, urging voters to approve Question 2, which will ask Mainers in the November elections if they want to approve a plan for the state to borrow $25 million to support startup businesses.
“The global economy is not sitting idle and Maine needs to continue to make investments to stay part of the global economy,” Patrick Woodcock, the chamber’s president and CEO, said in remarks on Tuesday. “We need to start planning for the products building on our legacy industries, to really invest in the next generation of products.”
He said research and development drive economic growth by funding innovations in our industries, such as forest products, marine and medical technology.
A key sector targeted by the investments would be Maine’s bio-science industry, which currently provides nearly 10,000 jobs with an average annual income of almost $110,000, according to industry reports.
“By investing in research and development through this bond, we can accelerate these advancements, increase the number of quality jobs for Mainers, attract new talent and position Maine as an innovation leader,” Focus Maine, a trade group, said in a recent op-ed in support of the ballot question.
“Maine entrepreneurs and research institutions are hungry for investment to unlock their ingenuity and develop products that contribute to resilience, sustainability and health, positioning Maine as a relevant player in the global bioscience ecosystem,” the group wrote.
The proposal was approved earlier this year by the Democratic-controlled state Legislature with Republican support. Gov. Janet Mills, a Democrat, signed the bill to put the question before voters.
“Innovation is a proven driver of economic growth, but historically, Maine’s state investments in research and development have lagged behind much of the nation,” Mills said in a statement. “If approved by Maine voters, this bond will make key investments to spur new technologies and economic growth and strengthen Maine’s economic future.”
Maine ranks 44th in the nation in state investment in research and development, according to the chamber, lagging far behind other Northeast states such as Massachusetts, Rhode Island and New York.
Maine voters approved a similar referendum in 2017 authorizing the state to borrow $45 million for research and development. The proposal passed with 62% support, according to the Secretary of State’s office.
The Mills administration said the borrowing led to a $1.4 billion impact on Maine’s economy and created more than 1,700 new jobs in dozens of industries.
The referendum is one of three proposals on the Nov. 5 ballot asking voters to approve borrowing plans. Another ballot question asks voters to approve a $10 million historic preservation bond while a third seeks $30 million borrowing to expand the state’s recreational trails.
