Cures for Unorganized Growth
Development in Maine's Unorganized Territory comes at a cost.
Bangor Daily NewsWith an increasing number of people building homes, seasonal and year-round, in the Maine woods, the demand for services in these remote parts of the state will continue to increase. A legislative study committee has come up with some good suggestions -- first, educate newcomers about what is and is not provided, and second, increase funding for state and county agencies to provide fire protection, planning, and other services. Lawmakers should use the suggestions to change state policy to ensure that the costs of future development in the territories are fairly allocated.
For Piscataquis County commissioners, concerns about development in the Unorganized Territory are immediate. Plum Creek Timber Company has proposed to build nearly a thousand house lots and two resorts around Moosehead Lake. The Land Use Regulation Commission has asked the county commissioners to develop a list of concerns that should be addressed by the Seattle-based company.
Between 1990 and 2000, the population in the Unorganized Territory in Piscataquis County grew 20 percent, while the population of the county as a whole dropped 7 percent. The number of houses in the territory is also growing. In the 1970s, an average of 204 new houses were built yearly. In the 1990s, that grew to 298 homes per year. At the same time, the ratio of seasonal to permanent homes has dropped from 3.7 seasonal residences for every year-round home in the 1970s to 2.5 seasonal residences for every year-round home in the 1990s. That, too, means more demand for services as more people live in the territory all year.
One attraction of the Unorganized Territory is its low tax rate, which averages about half that of organized towns largely because school costs are shared equally among all the taxpayers in the territory, including large landowners that own most of the North Woods and require few services.
Growth in the Unorganized Territory is not unwelcome. New development means new taxes and customers, and in the case of a resort or manufacturing facility, new jobs and payroll. These benefits, however, bring with them additional traffic, trash, and demands for water, electricity, and sewer services, as well as changing the distinct character of the region.
The legislative task force has called for three more Forest Service helicopters for fire suppression, a restoration of five positions eliminated from LURC, and giving counties the authority to charge fees for services they provide to the territories. Assessing new fees and creating new government positions will no doubt be contentious, but development in remote areas demands new ways to fairly pay for its consequences.
Ellsworth American
Time To Hammer A Failed Computer System
Maine's Medicaid computer billing system has been dysfunctional since it was switched on two years ago. Now, some $56 million later, the state is giving some thought to pulling the plug on the entire system and starting over.
Before a final decision is made, the Department of Health and Human Services will wait for recommendations from an outside auditing firm that has been hired, at still more expense, to help determine what to do next. And without a backup system to pay the bills of Maine's nearly seven thousand Medicaid providers, the state truly is between the proverbial rock and a hard place.
So far, the patches to the system have been only partly effective. The system no longer is rejecting most claims as it did at the start, but it still is creating errors that can't then be deleted and is not performing other necessary functions. To make matters worse, the state now is in the position of having to recover more than two hundred million dollars in excess interim payments made to providers in an effort to keep them whole while technicians were working to make the billing system operational.
Senator John Martin (D-Aroostook County), who was recently elected as assistant Senate majority leader for the 123rd Legislature, was demanding that the state "start using a hammer to get that money back." In some cases, that might be appropriate. But the state also would do well to start using a hammer on Maryland-based vendor CNSI, which won the original bid to build and install the computer system. That company subsequently has claimed it is not responsible for the huge cost overruns resulting from the faulty system. CNSI claims it actually lost money on the Maine project but nevertheless calls it a "success story" on its Web site. That's probably because CNSI is now selling to other states -- under lucrative contracts -- the software program for which Maine has paid all the guinea-pig development costs.
Governor John Baldacci hinted, just days before the election, that some action might be forthcoming, but so far, we've seen no indication of any legal action seeking to force CNSI to accept its share of responsibility in this whole sorry situation. Maine taxpayers ought not have to fork over $56 million -- and counting -- for a system that doesn't work.
Maine Sunday Telegram, Portland
The Dark Side Of The Racino's Bright Beginning
At first glance, it might be a temptation to consider the impressive income numbers posted by Hollywood Slots -- Maine's first-ever racino in Bangor -- as a solid reason to support gambling in Maine. It would, however, be a mistake. Racino gambling, and gambling in general, are simply not the kind of enterprise that will benefit Maine in the long run.
Given the Hollywood Slots revenue numbers, this is admittedly a running-against-the-tide position to take. In the eleven months since opening last November, the racino generated more business than expected. In fact, the opening month's revenue of about $2 million climbed to $3.45 million by September.
The average daily attendance was 2,500. Overall, a net of nearly $32 million was earned on a total of $470 million wagered. Out of that, Maine's general fund was enriched by $4.7 million. Other interests also benefited. On top of those figures, it should also be noted that expected increases in crime have not occurred. So, supporters might ask, where's the downside?
For one, look at another figure: The average loss per visit by a Hollywood Slots patron was forty dollars. The inescapable bottom line on gambling is that patrons lose and owners win. Gambling patrons may frequent a racino for entertainment, but for an average of forty dollars, patrons get none of the intellectual or family-friendly stimulation of movies, plays, or concerts.
Gambling, however, always has a dark side -- addiction problems follow wherever it occurs. At this point it is far too early to see how pervasively addiction will tarnish the shiny allure of Hollywood Slots, as it has in other locations. The fact is, though, it will. At some point, that forty-dollar "average" loss can grow into a problem with the social impact of a wrecking ball.
The relative ease of gambling revenue can be seductive -- terrific income generation right out of the gate, and for a lot less effort than traditional economic development. Good jobs in manufacturing and technology-based companies, however, don't depend on taking money from Mainers' pockets. The success of Hollywood Slots also sends a signal to gambling interests that Maine is fertile territory. Other gambling proposals are in the works, no doubt emboldened by Hollywood Slots. That is unfortunate, because gambling represents an industry that holds no long-term benefit for Maine.
Portland Press Herald
Reading The Future For The Public Market
Officials of the Portland Public Library think that the former Portland Public Market, just a block away, would make an excellent new facility. That's no surprise: the market is one of downtown Portland's most attractive indoor spaces.
According to library officials, the former public market space would be ideal for housing the facility's most popular sections -- music, computers, magazines, and best-selling books. Acquiring it might let the library close down most of its present location except for some storage and research space, according to a "conceptual plan" submitted to the city recently.
Calling the former market "an ideal spot" and "wonderful space," library director Stephen Podgajny said he hopes to discuss a possible purchase with city councilors soon. He may have to bring his piggy bank. The public market was listed for sale for $4 million by its broker, even though the plan said its owner offered it to the city for $2.5 million to $3 million.
The library has raised $2.2 million in a capital campaign to renovate its current facility. Another four million dollars is available from an as-yet-unspent bond approved by voters for the present plan. City officials say voter approval would be required to apply that bond money to another site.
Even more important, acquisition of the market would mean the city would give up any property tax revenue it would receive from a private sale. That income, which would flow in year after year, would seem badly needed for other city priorities, including school renovations. Thus, councilors should look closely at the library's new idea -- and bring their calculators along to the meeting.
