College loan tax credit will pay for itself - Portland Press Herald

Keeping Maine's brightest youth here after graduating is among the best economic catalysts by Clifford Ginn, President, Opportunity Maine

A recent Press Herald editorial praised a group's efforts to create a scholarship fund for South Portland high school graduates. As president of Opportunity Maine, I, too, applaud these people for working to make college affordable. Expanding educational opportunity is the best way to bring more high- paying jobs to Maine.

What the editorial neglected to mention, however, is that Maine is now the nation's leader in making college affordable for its residents. Under a new law, Mainers who earn associate's or bachelor's degrees at Maine colleges (public or private) and live and work in Maine afterward can claim an income tax credit large enough to cover their student loan payments.

A graduate can also transfer this educational opportunity tax credit to an employer who makes loan payments on the graduate's behalf.

Opportunity Maine drafted this law last year as a citizens' initiative, gathered more than 72,000 signatures to place it on the ballot, and built a statewide coalition of hundreds of students, community members and business, labor, education and civic leaders. The Maine Legislature passed it as written (the sixth time in Maine history that the Legislature passed a citizens' initiative outright). The vote in the House of Representatives was unanimous!

The governor and legislative leaders of both parties have publicly committed to making this a long-term investment, without any scaling back, so Mainers enrolling in college can count on the credit being there.

Educational opportunity tax credits are capped based on tuition and fees at public colleges, and are tied to loans approved under a financial aid package. This translates into assistance for most students, and up to $55,000 for those least able to afford college.

Most Maine graduates leave college with education-loan debt. Debt loads average more than $21,000 for bachelor's degree earners and half of that for associate's degree earners. The extraordinary cost of college deters many Mainers from attending and drives many graduates out of the state because they cannot make loan payments on Maine salaries.

The educational tax credit makes it possible for Mainers to enroll in college with the confidence that they will be able to erase their educational debt, and makes it easier for graduates to live and work in Maine after earning their degrees.

This law will benefit Maine businesses. The education level of the work force is the most important consideration for businesses deciding where to locate, and making college affordable is the best way to get more degree holders in our work force.

Allowing Maine businesses to claim the credit on an employee's behalf will also give them an advantage over competitors in other states.

Investing in making college affordable is thus the best way to strengthen the state's economy. The proportion of degree holders in a state's work force is the main predictor of average incomes. This is unsurprising, as an associate's degree adds an average of $10,000 to a person's yearly earning power, and a bachelor's degree adds almost $17,000.

Maine's incomes lag 25 percent behind the rest of New England, and the proportion of degree holders in our work force lags 23 percent behind. Opening the doors of educational opportunity will allow us to catch up with the rest of New England on both fronts. The law will pay for itself.

The law provides benefits for anyone enrolled in college when it goes into effect, so current students and Mainers enrolling this fall and winter should check with their financial aid offices about how to become eligible.

Even with the educational opportunity tax credit, we still need more of the type of aid that the South Portland scholarship fund would provide.

Likewise, the state and our colleges must work together to finance needed improvements to our higher education system and to control tuition growth.

However, we have seen in the past year that when Mainers work together, we can meet any challenge and build a brighter future.

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MDI: Young retail entrepreneur finds success - Bangor Daily News

BAR HARBOR - Growing up in Bar Harbor and spending summers waiting tables, Danielle Mace knew what tourists wanted.

And Mace knew what she wanted — to live in Bar Harbor indefinitely. In 1997, at age 24, she and her boyfriend purchased the modest, aging building at 240 Main St. and got to work — renovating, rebuilding and seeing it through its evolution from a summer rental home to a consignment shop to a popular women’s clothing boutique, Macey’s.

"I definitely think she’s filling a niche on the island," Julie Veilleux, president of the Bar Harbor Merchant’s Association and owner of the Widow Panes stores, said Friday. "Danielle is a great gal. She certainly is ambitious."

Mace represents the young, native Mainer the state is trying to retain with programs such as Realize! Maine, a social networking organization, and Opportunity Maine, which gives tax credits for college loan repayment.

While her family and work have made her want to stay in Maine, Mace said she has seen about half of her class at Mount Desert Island High School leave the state. Her brother lives in Portland because he simply does not see any work opportunities on the island, she said.

After graduating from high school in 1991, Mace took a few college business courses at the University of Maine and then decided to return to her hometown to keep her job as a waitress at Jordan’s Restaurant and save money. In the winter, when Jordan’s closed, she would go to Florida to wait tables and work on a boat that sailed between Naples and Key West.

Mace and her longtime boyfriend, Dean Paine, decided to purchase the house on Main Street from his father, David, the owner of Jordan’s. Mace began working for David Paine at age 15. She credits him with teaching her business savvy.

"I saw what was happening on this end of the street and I just knew that I needed to utilize the property," Mace said in a recent interview, referring to the restaurants, galleries and shops that had spread up the hill through the center of town. "It was a great investment."

Mace and Dean Paine got to work renovating the 1890s house themselves, then began renting it summers. Mace eventually decided she wanted to move on from waitressing and decided to turn the rental house into a business.

"Somewhere in me I knew I was probably not going to work for somebody else for the rest my life," Mace said.

An avid resale shopper, Mace and an aunt each contributed $1,000 and started a consignment shop together in Mace’s house, calling it Macey’s. They filled the small rooms of the first floor with used and sample clothing and opened for business.

After a year, Mace’s aunt chose a new career and left the shop. From 2000 to 2003, Mace ran Macey’s on her own but found the slim profit margin discouraging. In 2003, she and Dean resolved to tear down and rebuild on the property so that she could open a larger shop and sell new clothing.

It had taken almost two years of negotiating with the town to come up with a design that would appease both owners and planning officials, but in May 2004 Macey’s reopened on the first floor of the new, three-story building. Mace and Paine live on the second and third floors in a sprawling, sunny apartment.

Mace has found much more success with her new store, which closes every January and reopens in April. Last year, when the Bar Harbor Merchant’s Association opened with the goal of promoting shops that are open beyond the summer months, Mace quickly got involved.

"People just assume Bar Harbor shuts down [after summer ends], and really it’s not the case," Mace said.

The seasonal, sometimes capricious, nature of business is Mace’s biggest challenge, she said.

"This business runs on sun, and when it rains you think, ‘Oh my gosh, I’ve got all this inventory,’" Mace said. "There’s a lot of sleepless nights, but it’s a lot of fun."

by Anne Ravana

Editor’s Note:
This is one in an occasional series of articles on young business leaders and their decision to live and work in Maine.

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Gains for workers must continue - Portland Press Herald

Labor Day celebrates our workers. This holiday dates from the late 19th century, when the country was changing from an agricultural economy to an industrial one and labor unions began organizing and advocating for America's workers.

The first Labor Day parade took place on Sept. 5, 1882, when 10,000 workers demanding better working conditions took unpaid leave to march in New York City. Congress legalized the holiday in 1894, after a turbulent labor strike at the Pullman Palace Car Company in Chicago drew attention to the issue of worker rights.
Maine has a rich, tumultuous labor history. At statehood in 1820, Maine's work force was mostly agricultural. Less than 7 percent of our workers were employed in commerce, called service and transportation now, and just over 11 percent were in manufacturing.

During the dramatic economic change of the 19th century, and despite the state's enduring reputation as having the hardest workers in the nation, working people were not necessarily well-treated or well-paid.

In 1888, the Maine State Bureau of Industrial and Labor Statistics (now the Department of Labor) engaged Flora Haines to assess conditions for women working in the state's shops and factories. The bureau's annual report that year includes comments like this one, from a cotton mill cloth inspector: "Scores of women with
families to raise and support have but barely enough for their work to keep hunger from their doors."

While wages were a primary concern for most workers, safety and other working conditions were also inadequate, if not downright dangerous.

A 92-year-old Lewiston man who worked as a boy in the Pepperell Mill is quoted in the Museum L-A's current exhibit, "Portraits & Voices: Workers of Seven Mills," in which he recalls another boy taking his place on a machine and losing a finger when he accidentally ran it between the rolls. "If they had had OSHA in those days, they would have made the company change lots of machines."

Reforms regulating child labor, safety, wages and hours at the state level occurred directly because of the tremendous sacrifices of Maine's workers, individually and collectively, along with support from lawmakers, cooperative businesses and responsive government.

Labor Day 2007 finds Maine's work force in transition. As in the 1800s, the economy is changing the character of the job market and the nature of the work force. Nonetheless, workers still want basic respect, a safe workplace, fair pay and benefits, opportunity for job advancement and a chance to make life better for themselves and their children.

Today presents a tough reality for Mainers who have lost the jobs they thought they'd be retiring from. Layoffs in the papermaking industry this summer are a recent and sad example. We acknowledge the challenges facing our work force and respond both compassionately and pragmatically.

Technology is transforming the way work is done. Nearly half of the jobs in Maine created by 2014 will require a college degree or a training certificate. We introduced Lifelong Learning Accounts so employers and employees can collaborate on paying for continuing education.

The Legislature recently approved the Competitive Skills Scholarship Fund, which helps low-income workers pay for tuition, books, equipment and support services to complete a degree or certificate program. Gov. John Baldacci signed this bill
and another, establishing the Opportunity Maine tax credit for college graduates who work in Maine while paying back their student loans.

The Maine Department of Labor helps laid-off workers with training through federal programs. By partnering with organized labor and businesses, we're keeping Maine's workers in our hearts and minds.

Without our workers, we have no economy. As the state, national and global economies evolve, we commit to ensuring that the entire work force has education and skills, a livable wage and health and safety protections. This is the best way to honor
Maine's workers.

On this holiday, let's honor past sacrifices and vow to help Maine's work force adapt and advance.

Laura Fortman, Maine Commissioner of Labor

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Taking Chances

by Justin Ellis

When it comes down to it, college is not for everyone. Some people would rather get right to making money, others see vocational schools as the best way to get bankable skills.

But with rising tuition costs and student loan rates, there are now also a group of people out there who see college as a goal, but can’t get there because of the money question.

Opportunity Maine won’t provide a gold-bricked path to college for everyone, but it will help.

The new law will provide tax credits (or "tax breaks" depending on how you feel about it) of up to $2,100 a year for students who continue to live and work in Maine following graduation.

Every one of the Opportunity Maine people I spoke to said they were almost caught off guard by the Legislature’s approval of the tax credit.

But as far as surprises go, this one was not so bad. Also, its possible this is a first-in-the-country type of program, so we’ll see if the “so goes Maine,” idea holds up.

Opportunity Maine’s organizers had been planning to take this one to the streets, just like every other citizen-initiated proposal over the last few years.

But they still plan to take their show on the road this fall to educate people about the new law and make people aware of how to take advantage of it. That means heading out to schools, talking with guidance councilors, principals, students and parents.

Speaking with Gov. John Baldacci last week, I was told that the tax credit is an important tool for keeping young people in the state.

As the governor sees it, addressing the cost and accessibility of higher education are just as important as dealing with rising property taxes. In the end, taking part in the program means joining the workforce as a young Mainer, which also means becoming another taxpayer, he said.

Baldacci said the program is not the ultimate solution, but it will help address at least some of the issues that young people face when deciding whether to stick it out here in Maine.

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'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."

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