Maine news, sports, weather | Kennebec Journal, Augusta, Maine

Annual study cites Maine's progress, but also red flags

By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer

AUGUSTA -- The state needs more college-educated workers, lower energy and health care costs, and more investment in research and development, according to a report to lawmakers.

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The Maine Economic Growth Council, a 19-member panel with business, labor, education and legislative representatives, released its 2010 Measures of Growth report to legislative leaders released Thursday.

The report examines the state's progress on 24 indicators, awarding gold stars for progress and red flags for areas that need attention. It's designed to help lawmakers and the governor's office consider long-term implications as they make decisions on legislation, said Laurie Lachance, president of the Maine Development Foundation.

"No single indicator tells the whole story of Maine," she said. "This report looks at long-term, more structural issues. It's not meant to be a judgment of what's happening today."

The council awarded gold stars in the areas of per-capita personal income and health insurance coverage.

When it comes to personal income, Maine improved from a national ranking of 33rd to 30th from 2007 to 2008, according to the report. The council has set a goal of getting to 25th by 2015.

On health insurance, 90 percent of Mainers have some sort of coverage, which is about 6 percentage points higher than the national average, the report states.

But while many Mainers are covered, health care costs received a red flag, mostly because there's not enough data to make a good comparison, said Steve Schley, president of Bangor-based forest products company Pingree Associates Inc., who served on the council as one of its business members.

He said the energy red flag and the higher education warning were of particular concern.

"An educated and trained work force is central to competitiveness," he said.

Businesses in particular suffer from the state's high energy costs, which are 59 percent higher than the national average and are considerably higher than in Canada, he said.

"This is a particularly acute problem for natural-resource industries where we compete directly with neighboring provinces in Canada for the same raw material, producing the same products," he said.