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

TONY PAYNE: Maine not in lineup of nation’s most business-friendly states

Just prior to the All Star baseball game that showcased the best in major league talent, NBC News reported that its affiliate, CNBC, released its list of America’s Top States for Business. In the starting lineup of states that make business and jobs their passion, Maine was out of contention.

 Among the 50 states, Maine did move up one place from the year before, to number 39. The best among the 50 franchises was Texas, followed by Virginia and Colorado. Among the New England states, Massachusetts was fifth, New Hampshire was 19th, Connecticut was 35th, Vermont was 37th and Rhode Island was 49th.

These overall state rankings were a compilation of 10 different scores measuring everything from the cost of doing business to transportation.

Maine’s quality of life ranked sixth among all states. Though we tout our wonderful quality of place, five others ranked better in both this measure and overall business-friendly scores.

When measuring the cost to run a business, Maine inched forward one position to 39th, but dropped two places, from 45th to 47th, in work force assessment. This is one of the most important factors for business, according to most employer surveys, as it rates education levels, availability of workers and union activity. 

Maine’s economy stayed in the middle (25th, up from 26th) in basic indicators of economic health and growth. The lack of major corporations located in Maine appeared to hold the state back from a higher ranking.

Maine was dinged for its transportation infrastructure, dropping from 36th to 41st, scoring poorly for availability of airline flights, quality of roads and the value of goods shipped by all modes of transportation.

The state remained stuck at 41st for technology and innovation, which measures funding for innovation, patents issued to residents and deployment of broadband Internet.

With the introduction of the Three Ring Binder project that will bring high-speed Internet connectivity to more Maine enterprises, as well as recent research and development grants, Maine should move up in this bellwether ranking in the next few years.

Maine ranks high in education, which is acknowledged as the key to providing a skilled workforce. Maine improved from eighth to seventh in the nation by this measure, which includes elementary and secondary education test scores, class size and spending. Understanding that we have one of the highest costs for K-12 education in the nation, however, as well as one of the lowest teacher-to-student ratios, one might assume that our K-12 scores masked our less-than-adequate funding for the state’s universities and community colleges. 

Regulation and litigation were measured to determine business-friendly rankings, and Maine dropped four places to 28th. Next came access to investment capital, and Maine shared the bottom ranking with a dozen other states.

Finally, when measuring what we pay for pay for food, housing, energy and other monthly expenses, Maine dropped from 38th to 39th.

There’s no question that Maine can do better, as most of these measures are based on public policy decisions made in Augusta. If all states are roughly equal under federal law, then we are differentiated by the decisions made in state capitals.

If we took some lessons from seemingly similar-sized states that were ranked in the top third overall, we could begin to work our way up the ratings. For example, Iowa (sixth), North Dakota (seventh), South Dakota (12th), Nebraska (13th) and Wyoming (14th) all did better than Maine, and all had a lower cost of living. 

There’s a myth about Maine that needs to be challenged. We are not the best place to live and work.

While we choose to be here, there are other places that are doing a lot better.

They also have residents who choose to be there for all the same reasons. With a state challenged to attract younger workers, investment capital and innovators, Maine’s Legislature and its people need to improve their attitudes toward business.

Perhaps the greatest challenge, however, is to get business owners to see beyond their own enterprises and get involved in the broader issues of higher education, public policy and international trade.

These are the factors that will bring new money across our borders.

A change in their attitude and behavior will foster a generation of excited entrepreneurs whose innovation will carry this great state into a very fun and prosperous future.

It takes practice and commitment, but it will produce an All Star performance that may put us in contention for America’s Top States for Business. Let’s play ball.

What do you think, and what are you willing to do about it?



Tony Payne is a lifelong Maine resident active in business, civic and political affairs. He can be reached at tpayne@midmaine.com

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