Cities of the

Future

An Agenda to Grow
Maine's Economy

Mayors' Coalition on
Jobs and Economic
Development
2015

CITIES

OF THE

FUTURE

An Agenda to Grow Maine's Economy

The future of Maine's economy is inextricably linked to its cities. Maine
cannot prosper unless its cities prosper. A lot of good things are happening.
Maine's communities are growing in the 21st Century, seeing an expansion in
jobs and economic activity along with growing population. You can see it in
Portland's vibrant Old Port and world class restaurants, in the redevelopment
of mills in Biddeford/Saco, Lewiston, and Sanford, and in the Waterfront
Concerts in Bangor. These developments are evidence of the vibrant
economy and culture of Maine's cities.
The economic challenge facing Maine is our limited work force. Economist
Charlie Colgan concluded in October of last year that "everything depends on
migration. Without more people, Maine steadily declines." The best way to
attract new residents is through attractive and livable communities. This
paper outlines a state-local partnership to achieve that goal.
Attractive and livable communities share a variety of traits. They must:
Be
Be
Be
Be
Be

Connected
Where People Want to Be
Where People Want to Learn
Financially Affordable and Viable
Welcoming to New Residents

What follows are a number of proposals designed to achieve these goals.

These proposals were developed by the Mayors Coalition on Jobs and

Economic Development. The
Coalition was formed in 2012 and
includes the Mayors of eleven Maine
communities. The purpose of the
Coalition is to advocate for state
policies that will grow Maines
economy statewide by providing the
infrastructure, skilled workforce, and
reasonable tax rates necessary to
support such growth. The Coalition
brings together the Mayors of
Auburn, Augusta, Bangor, Biddeford, Gardiner, Lewiston, Portland, Saco,
Sanford, Waterville, and Westbrook. This is a bi-partisan group that
represents municipalities with a combined population of just under 275,000.

Be Connected
Communities must be connected. That means connections both physical and
virtual. The Coalition supports policies to improve Maine's transportation
network, including public transportation, and our connectivity to the rest of
the world.
Broadband
Maine has fallen behind the rest of the country in the quality of our internet
connections. A January 2014 article by J. Craig Anderson in the Portland
Press Herald stated
"Maine ... ranks 49th
among 50 states for its
quality and availability of
broadband Internet
access."
A North Carolina study by
Strategic Networks Group
concluded that, for that
fast growing state, "one
in five jobs created in
2010 was directly
attributed to broadband."
More broadly, the McKinsey Global Institute concluded that between 2004
and 2009, 21% of economic growth in developed economies was attributable
to the internet. Ready access to world-class broadband is necessary for
growing companies and lack of that access will prevent Maine from
competing for new businesses.
The Mayors' Coalition endorses the following recommendations to improve
broadband service:
1. Set a state broadband capacity goal that is tied to economic
development;
2. Educate and encourage municipalities to invest in municipal fiber
networks (Coalition members are actively pursuing this); and
3. Invest State of Maine funds in strategic broadband projects.
The Coalition encourages legislators to make improving broadband a major
goal of the 127th Legislature.

Transportation
Maine has a large transportation network to maintain. Maine DOT does an
admirable job with available resources, but there are unmet needs that must
be addressed. The Maine DOT Work Plan for Calendar Years 2015-2016-2017
identified an annual gap of $119 million in Maine's highway and bridge needs
and available resources. The Coalition encourages the legislature to pursue
all available options to provide for a sustainable transportation network.
A strong transportation network is essential for a strong economy.
Transit
A flexible and viable public transportation system is increasingly something
that potential residents, especially young people, expect as they decide
where to live. Transit is essential for seniors for whom driving is no longer an
option. Increasingly,
residents of all ages
are interested in high
density
neighborhoods where
they can live vehicle
free.
Unfortunately,
Maine's public
transportation
network often falls
short of the standards
delivered elsewhere
in the country.
MaineDOT is currently preparing a Transit Strategic Plan, to be released this
spring. It is expected to document the limitations of Maine's current system
and to contain two recommendations strongly supported by the Coalition.
First, the creation of a Public Transportation Advisory Group (PTAG) to bring
together representatives of state departments, consumers, and providers to
develop the best possible transit network in Maine. This will continue the
productive collaborative process used in developing the Strategic Plan.
Second, a modest increase in state support for transit.
Be Where People Want to Learn
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The members of the Mayors' Coalition know that strong and vibrant school
systems are key to the prosperity of our communities, now and in the future.
The 127th Maine Legislature is positioned to take action on a variety of topics
in ways that will strengthen our schools and help build successful Cities of
the Future.

Helping Maine Students Excel

A strong economic future for Maine will require that we give every student
the opportunity to excel and nurture our most talented students. There are a
number of ways the 127th Legislature can create that opportunity. The
Coalition would recommend a commitment to the following:
1. More AP classes. Let's challenge the best students and allow them to
get a leg up on their college careers at the same time.
2. Commit to making foreign language and music available to all. The
creative talents they inspire and the cross-cultural relationships they
enable will be increasingly central to economic success in coming
years.
3. Expanded access to higher education for high school students. The
Rural U run by University of Maine in Fort Kent clearly demonstrated
that getting students engaged in college courses early increases the
likelihood they will continue and complete a college degree.
4. Expand access to virtual education, which can expand the course
offerings available to all students.
5. Expand the curriculum on finance and business. Students should
emerge from high school with an understanding of the financial
realities of business and with the ability to manage their own finances.
6. Provide year round school opportunities. Interested students should
have the opportunity to grow and develop their intellects year round.
Skilled Workforce
The 126th Legislature did commendable work at identifying and addressing
the major challenges in providing a skilled workforce for Maine. The steps
they implemented, including additional funding for the Maine Community
College System, with a focus on indemand skills like machining, and for
the University of Maine System were
thoughtful and helpful. But more needs
to be done and the Coalition
encourages the new Legislature to
continue working on these issues.
Funding - Title I
The members of the Coalition house
many of the most successful businesses in Maine. But many of our residents
are not financially successful. Over the last half century, high earners have
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left our communities for the lower cost suburbs. Recent research conducted
by the Maine Service Center Coalition (MSCC) demonstrates this clearly. The
MSCC determined that Maine's 70 service centers host 77% of Maine jobs
and generate 81% of taxable retail sales, yet contain only 47% of Maine
residents.
And many of those residents are low-income. This can be clearly seen in the
percentage of school children receiving free and reduced lunch in Coalition
communities. The state average is 47%, but the rate for Coalition
communities is 55%, with a high of 69% in Waterville.
Title I is a federal program created with the express purpose of assisting
school districts with the highest rates of poverty. Most Coalition schools
receive Title I funds, but due to a quirk in the state funding formula, this
federal assistance is deducted from their state school funding. This needs to
be fixed both because Maine's low income students deserve it and we need
to comply with the intent of federal law.
School Construction
The State of Maine reviewed applications for new school construction in
2010-11 and developed a
priority rating list of 71
schools. To date, only the
first 12 schools on the list
have moved forward. The
Coalition would encourage
the Department of Education
and the Legislature to
approve moving forward
more quickly with the
remaining schools on the list. Too many students and teachers are working in
inadequate, unsafe, and/or outdated facilities.
Local Share of Teacher Retirement
Historically, the state has taken on certain burdens related to school
operations. When the state added teachers to the state retirement system, it
committed to covering the full cost of the retirement system for current
teachers. This is a commitment the state kept, in good times and bad, for
many years. Unfortunately, the most recent budget abandoned that

principal, shifting $15 million in costs to school districts. The 127th Maine
Legislature should undo that step.
Charter School Funding
All school districts struggle with appropriately funding K-12 schools. The
127th Legislature can ease this burden by eliminating one of the major
uncertainties school districts must struggle with - the number of their
students who will attend a Charter School. That is because, under current
law, the school district must send a check to a Charter School for every
student from their geographic region who attends that Charter School. In
reality Charter Schools, which are authorized and regulated by the state, are
paid for by local school districts. That is not fair and it must change.
Charter Schools should be funded directly by the state. The Coalition was
pleased to see unanimous approval of legislation to accomplish this in the
Education Committee.
Be Financially Affordable and Viable for Residents and Businesses
Recent changes in state support to municipalities have created a great deal
of uncertainty for Maine businesses and other property taxpayers - in other
words, for everyone in the state.
The 127th Legislature needs to put an end to the roller coast and provide
businesses with some property tax rate certainty. And that means providing
revenue certainty to
municipalities, especially
those communities that are
already struggling with a
high demand for services,
a large number of tax
exempt properties, and
high property tax rates.
The Legislature can
provide that certainty by
committing to fully fund
revenue sharing. If that is
not achievable, the Legislature must provide communities with the tools
necessary to stabilize local property tax rates. There are a number of ways to
reach that goal, but the time for talk is long past. In 2015, the Legislature
must act.
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The Coalition recommends consideration of the following options to stabilize

the property tax:
1. Revenue sharing at 5% (it's the law).
2. Local Option Sales Tax. Approved at the municipal level with revenues
split between the taxing municipality and other communities in the
same County.
3. General Assistance. The state should take over the management and
funding of the general assistance program. Municipalities have
generously underwritten these costs for years, even as the state
continually plays with the terms of the program. It's time to move on.
LD 632 will enact this change.
4. Fire Service Fee. Coalition members host the largest tax exempt
organizations in the state. These include state government, major
hospitals and other health care providers, and social service agencies.
Under current law, many of these entities pay nothing to local
government for the public services they receive, including roads, public
safety, and fire protection. A basic fire service tax that apportions the
cost of fire service among all property owners on a per square foot
basis would assist communities while fairly distributing this cost. This
proposal has been presented as LD 724.
Maine's cities are seeing population and economic growth. Both trends will
be negatively impacted if action at the state level forces property tax
increases and drastic service cuts in our communities.
Be Welcoming
"Everything depends on migration. Without more people, Maine
steadily declines...." Charles S. Colgan, Director, Maine Center for
Business & Economic Research, Muskie School of Public Service,
September 30, 2014
Professor Colgan could not be more correct. His message was repeated by
State Economist Amanda Rector before the Appropriations Committee in
November, 2014. Maine is the oldest state in the nation. To grow our
economy we need to add more young and educated people. This means
attracting young Americans from the other 49 states, and attracting and
developing the skills of legal immigrants from around the world.

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The Mayors' Coalition supports

policies to attract those young
people from around the
country. That means marketing
Maine outside the state,
appealing to out-of-state
students in Maine's many
outstanding colleges and
universities, and building on
efforts to assist young people
staying or moving here by
addressing burdensome college
loan costs.
We support policies that welcome legal immigrants and help them quickly
become productive members of the community. That means more English as
a Second Language (ESL) courses, employment assistance, and help
securing licenses to apply the trades and professions they practiced in their
home countries.
Conclusion
Maine's largest communities are experiencing a period of welcome growth in
population and economic activity. We are an engine for statewide growth and
can do even more working with state government. Together we can attract
the new workers Maine needs, grow businesses here in Maine, and better
connect Maine communities with the rest of the nation and the world. The
Mayors' Coalition looks forward to working with Legislators to build the Cities
of the Future.

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