'Opportunity' knocked and lawmakers opened the door

The Legislature was totally on board with the idea of tax credits to induce grads to stay in Maine.
by Justin Ellis

Andrew Bossie owes $27,500. Too bad irony does not pay bills.

For months the recent University of Southern Maine graduate has been working to see through a proposal that would give students tax credits for staying in Maine after graduation.

Two weeks ago the Opportunity Maine proposal was approved by the state Legislature and today is scheduled to be signed into law by Gov. John Baldacci. The initiative may be the first of its kind in the country.

Sadly, eligibility for the tax credit starts in January 2008, which means Bossie will be paying back his loans the old-fashioned way.

Still, he says, it helps knowing that others are going to get help with their loans.

"It's a step in the direction of making it more feasible and helping someone who wants to stay in Maine and wants to contribute to the state and not face major financial impediments along the way," he said.

As a law, the Opportunity Maine proposal would provide a tax credit to anyone who receives an associate degree or bachelor's degree in Maine and remains in the state to work following graduation.

Supporters of the citizen-initiated bill were expecting the proposal would be passed along to voters in a referendum this fall. But a funny thing happened.

On June 19 the House voted 142-0 in support of the bill; a day later the Senate voted 27-8.

It's only the sixth time in the almost 100 years that a citizen- initiated bill was approved without having to go to referendum.

"When the House vote came and it was unanimous we were kinda like, 'Whoa,' maybe we do have a chance," said Bossie.

Tony Giampetruzzi, spokesman for Opportunity Maine, said the next step will be educating the public about the new law and how to take advantage of it.

"We have not found anything that is as far-reaching in scope as this," he said. "We think it's a ground-breaking initiative and a model for other states."

The amount of the credit would be based on the amount of a loan payment, up to a maximum of $2,100 a year.

Graduates can take the credit, or their employer may take it on their behalf.

It's estimated the program will cost $160,000 in the first two years.

By building support for the program, they can to show the Legislature that it will be worthwhile to fund in the future, Giampetruzzi said.

Baldacci said he supports the Opportunity Maine tax credit because getting an education can make all the difference for individuals as well as the state.

"I believe in it, I know it's the key to opening up opportunities for people to realize their dreams," he said.

Baldacci said he understands that the cost of college has risen too high for many families and has become a barrier to higher education. "The reason a lot of kids aren't going on or not staying in Maine is because of the high debt that they have when they get out of school," he said.

Opportunity Maine's detractors have mentioned the potential price tag of the state providing tax credits to graduates. Baldacci said the tax credit means more workers, which means more people paying taxes.

Justin Alfond, state director of the League of Young Voters, attributed the success of Opportunity Maine to statewide petitioning and aggressive lobbying efforts at the capital.

"When we tested it, 73,000 Mainers jumped right in there with us and said we believe it's time that Maine looks toward an education policy that is for the long term, that looks towards economic development and workforce development," he said.

Alfond said the League and countless other volunteers were ready to head out, house-to-house, to supermarkets and salons, to canvass the state to raise support for the proposal had it gone to referendum. In the end, it wasn't necessary.

Alfond said more people recognize that an education is necessary to get ahead and that Maine's livelihood will depend on people going to school and entering the workforce.

For an aging state like Maine, this sends a message that the state values young people and wants to keep them around.

"It's exciting to see Maine doing this great policy work and investing in young people," Alfond said.

For Bossie, a kid who grew up in rural Maine whose parents' income was just below the state's average, the money piece makes all the difference in college. On top of loans, he had around $17,000 in scholarships as well as grants.

Bossie said there is still a lot more work to be done in addressing rising tuition and student-loan rates, as well as what else Maine can do to keep its young people here.

But Opportunity Maine can be a big first step, he said.

"It's an agreement with the state not to worry about repaying your loan," he said. "It's not a ball and chain, but (the tax credit) can be an added perk if you want to stay here."