The Ati-thesis , Marxism


"By that definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production.[3] Friedrich Engels, in Socialism: Utopian and Scientific, argues that state capitalism would be the final stage of capitalism consisting of ownership and management of large-scale production and communication by the bourgeois state.[4]"

Quoted from Wikepedia

Friday, November 17, 2017

Is Fiscal Sponsorship the Key to Revitalizing a Middle Sector Economy?

In a recent blog post, I promised to continue the investigation into whether or not Andersen Design, a ceramic art, design and hand crafted production company, established as a free enterprise in 1952, can fit  NEA guidelines as part of the new "creative ecosytem"which connects the "arts" with the non-arts".and "investigates how support systems for the arts are changing, explores how the arts can connect with other sectors that want and utilize creativity, and invests in innovative projects to spark new, collaborative ideas"

Of course not, because eligibility requirements for a NEA grant have remained unchanged for decades.
National Endowment for the Arts’  "Legal Requirements" including nonprofit, tax-exempt status at the time of application. (All organizations must apply directly on their own behalf. Applications through a fiscal sponsor are not allowed. See more information on fiscal sponsors.)
ART WORKS Guidelines
As the National Endowment for the Arts champions itself as agents of change for others, and fancies itself collaborating with the world of business and economic development, the NEA is stuck in a rut concerning the effect of its eligibility policies on the economy. Eligability is tied to a 501 (3)(C) tax exempt status and explicitly excludes fiscally sponsored projects, now accepted by many private foundations. The difference between a fiscally sponsored project and a 501 (3)(C) organization is that the latter is tax exempt and the former is not, while both can accept tax deductible contributions. The NEA is yet another example of how the wealth redistribution systems in America work to tax some without representation while representing and exempting others from taxation and, in some cases, empowering the tax exempt entity with private taxation authority using the guise of refundable tax credits.

There is a popular call in the non-profit sector to discourage new non-profits. It may have started in 2010 with this post from Don Griesmann's Nonprofit Blog and transformed into the rhetoric of official policy in places like Redrooster.com and the Guidestar Blog. Don Griesmann offers a single reason for not starting a non-profit. It is because there are already a lot of non-profits. He does not expound further but the concern is apparent that should the ratio between tax exempt organizations to tax paying organization become over burdened on the side of tax exempt organizations, government resources for non-profits will dry up, and that will only be the beginning of larger economic problems.

There is also the competition factor, based in a conception of a fixed amount of wealth to be distributed. In this paradigm every non-profit donation received takes it away from another non-profit. The common sense solution to both concerns is to distribute more funds to fiscally sponsored social enterprise projects. Social enterprises are free enterprises and part of  the wealth creating economy. Fiscally sponsored projects pay taxes, producing more government revenue,a primary source of non-profit funding.

Also, social enterprises are often micro economy enterprises. Why does this matter? An economy with many small parts is a hedge against an economy dominated by fewer and fewer organizations. More importantly, an economy with many small businesses, as well as larger ones, provides greater opportunity that every individual can find a compatible and productive place within society.

Fiscal sponsorship opens a door to funding possibilities for micro businesses, which make up the middle sector of the economy, a sector which has been drained of capital resources by policies implemented to advantage public-private relationships (corporate welfare) and by the corresponding growth of general welfare. A fiscally sponsored project pays into the tax stream which funds the NEA. What goes around, comes around.That's old school, economic development 101. But instead the NEA compounds upon the mission to discourage newcomers on the scene by its funding policies for museums, which is for established museums,only, reinforcing the movement which calls for discouraging the creation of new nonprofits.

Upon reading the guidelines for NEA museum funding, I made a comment via email about how the support system for the arts is changing. I asked "What happened to the America which is about opportunities for all?"

I received a personal phone call which offered information about associations. One is called the American Association of State and Local History which I am told has a special group for businesses that start museums. I was not aware of this organization, which I hope will be helpful in my own historical research. Even though our government seems to have lost track of the founding intentions of Publius, that of a government that strives to serve all factions equally, still, every one who works for government is an individual trying to serve in their job to the best of their own understanding of what that means under the United States Constitution. So when we speak up with our own individual voices to those individuals, we reinforce the principle that government exists to serve all of the people. and like the butterfly that flaps its wings we change the system when we interact with it, in ways we cannot know. Keep the faith.




Monday, November 13, 2017

Why Support the Andersen Design Museum of American Designer Craftsmen?

The first in a collection of iconic wild life sculptures, The Andersen Design Floating Gull was created in the early sixties and has maintained its marketability ever since, establishing Andersen Design's work as genuine classics in their field.
#GivingTuesday is NOVEMBER 21- Please consider this:

I started this blog as an alternative voice, long absent in Maine's media, particularly since the Longley Doctrine of "a centrally managed economy by public private relationships" was established over and above our constitutional form of government in the mid seventies. In the tradition in which this blog was created, preserving the American political philosophy, which by its commitment to individual liberty, can be none other than a free enterprise system, I am defining one of the missions of the Andersen Design Museum of American Designer Craftsmen as shining light on the character of a  free enterprise system.

While The Andersen Design Museum of American Designer Craftsmen has belatedly gotten past the $1000.00 required in personal contributions so that we can begin the process of applying for foundation grants, we still need to raise funds quite immediately to procure a space and operations budgets tp get us through the interim between applying for foundation funding and receiving it.

The following is a general fundraising appeal describing Andersen Design's historical contribution to local economic development and why you should support it, with a contribution, large or small,as consistent with the founding purpose of this blog.

This blog is called Preserving The American Political Philosophy and in that respect is often about the subject of economic development with a special focus on local economic development.



Andersen Design is a ceramic designer craftsmen enterprise, established on Southport Island, Maine, in 1952 by my parents Weston and Brenda Andersen. Our enterprise has a long history which has produced an abundance of ceramic creative work over the course of sixty-five years. Andersen Design’s classic wildlife sculptures and functional forms are iconic representations of Maine for our collectors from all over the globe. Because our company was started with a mission to create hand crafted art and design affordable to the middle class, our work came to be collected by families of all walks of life and handed down from one generation to the next. Today there exists many collections dating back to the 1950’s, hidden away in the many folds of American and world culture.

Since Andersen Design is a ceramic production company distinguished by using art glazes and individualistic hand decorative techniques, there is an overwhelming abundance of variety in our historical work which deserves to be archived and presented to the public in curated displays. You can view samplings of our vintage history in two videos found on the home page of Andersen Design

My sister Elise and myself have inherited the business and responsibility to preserve the legacy and to use Andersen Design’s unusual intellectual assets to seed the ground for a blossoming ceramic designer industry of the future which we envision as located in Maine’s rural areas.

This post is a request for support during the first formational months of the Andersen Design Museum of American Designer Craftsmen.  We are hoping to procure temporary quarters for the museum in a location central to a cluster ceramic industry, both fee enterprise and non-profit, which grew up or about the Boothbay region in the wake of the establishment of Andersen Design. The location we would like to rent on the road that leads to the Watershed Center for Ceramic Arts and centrally located between Edgecomb Potters and Sheepscott River Pottery.

The Andersen Design Museum of American Designer Craftsmen is the fiscally sponsored entity which will be dedicated to the task of historical documentation of Andersen Design’s vintage work, and eventually to archive and document the greater history of selected American Designer craftsmen, with a special emphasis on our local region.

The archival project is very ambitious, and we would hope to generate adequate funding to train and hire others to photograph the work and maintain the data base, with eventual plans to include works of other American designer craftsmen in the data base. It’s an exciting historical narrative to produce in these changing times.

Funding of of $5000.00 or more to the Andersen Design Museum of American Designer Craftsmen, will pay for moving and location expenses and contribute to other startup cost such as establishing a website, and hiring legal and accounting services.

The Andersen Design American Phoenix is a sponsored project of Fractured Atlas, a non-­profit arts service organization. Contributions for the charitable purposes of The Andersen Design American Phoenix must be made payable to “Fractured Atlas” only and are tax-deductible to the extent permitted by law. You can also donate online, the fastest and easiest way.

"If you prefer, you can also donate by check. Please send contributions to Andersen Design. PO Box 246,5 Andersen Rd, East Boothbay, Maine 04544. Checks should be made payable to Fractured Atlas, with ANDERSE DESIGN AMERICAN PHOENIX PROJECT in the memo line."

Donations can be made online at Fractured Atlas.com. Search “Andersen Design” and the project link will display.

A Tradition of Innovation



In 1952, when, Weston and Brenda Andersen, started Andersen Design, then called Ceramics by Andersen, there was no National Foundation for the Arts, and there was no ensuing wealth re-distributive non-profit arts industry. Even the trade shows had not yet been invented. Andersen Design was started as a leap of faith.

The fact that Andersen Design was born in the age before government and non-profit support for the arts spread across the land, and even before the trade shows provided a venue for reaching national buyers, is an important aspect of Andersen Design's historical significance- it was the extraordinary realization of an artistic lifestyle created on a shoestring at a time when there was no larger social structure supporting the arts. My parents created the lifestyle within the free enterprise system, which has, since the emergence of the non-profit arts industry, been widely characterized as a choice motivated exclusively by profit.

Today the concept of "public benefit " is undergoing transformation with the introduction of the social enterprise. Social enterprises are defined as private enterprises, having a primary reason to exist for which their wealth creating function is the means to an end and not the end in itself. In an age when entitlement systems of every sort are overburdening governmental systems with ever escalating deficits, it is important to bring to life the stories of the free enterprise system which was the natural economic system emergent from the American political philosophy, when it was first formulated during colonial times.

The Andersen Design Museum of American Designer Craftsmen will bring such a history to light as it focuses not only on the exquisite and individualistic end products of Andersen Design and the greater American designer craftsmen movement. but also present educational shows and forums about the hand crafted making process in many disciplinary fields.

A Value Placed On The Work Process In and Of Itself

In 1952, Weston Neil Andersen resigned from as the Dean of the Akron Art Institute to start a ceramic production company because he loved making pottery more. It was the first step in a long tradition of taking the road less travelled. I have posted Dad’s  1952 statement to that effect on andersendesign.biz. You will also find the 1964 letter in which Dad is dealing with a circumstance which mirrors our own. He has expanded his production facility and is seeking capital for operations.
Shortly after arriving in the area, 

Dad was the last acting president of a local craft organization. We have in our possession a handwritten journal of that organization. Dad was also a founding member of the Boothbay Art Foundation, which is an important cultural icon of the Boothbay Region, supporting the work of many artists, both locally and state-wide. The Andersen Design Museum is the continuation of our family history of involvement in supporting the communities of arts and crafts.

Sleeping Sandpiper by Elise Isabel Andersen 2016


Andersen Design (as distinct entity from the Museum) is the ceramic art, design and ceramic slip casting, free enterprise s-corporation, established by Weston and Brenda Andersen in 1952, the legacy inherited by my sister, Elise, and myself. Andersen Design established production as an art form in the early fifties, a decade before Andy Warhol invented the idea.

Our company has produced an unusually abundant quantity of classic and market proven ceramic slip cast designs in functional ware and wild life sculptures. With its founding philosophy of creating a hand-made product, affordable to the middle classes, Andersen Design was established on social enterprise terms, before the concept of social enterprises was articulated by Freer Spreckley in 1978.


  • Andersen Design’s assets are the vintage work and intellectual property comprised of an unusually large inventory of ceramic slip cast designs, as well as the Andersen Design brand itself. 

We are planning on launching a Kickstarter project to fund operations of our new ceramic slip casting studio, currently under construction. Our Kickstarter project is still in the planning stage, but we hope to launch it in a matter of weeks. Part of the planning process is to line up promises to pledge to the Kickstarter project on day one. If a Kickstarter project is successful, it must start with a great show of support on the first day. Please email us if you are able to commit to pledge on the first day of our KIckstarter fundraiser- or have another interest in supporting our Kickstarter project.


  • We are also looking for video making talent to make the video for our Kisckstarter project, young talent looking for exposure will be considered.

Bob and June Rose will be The Andersen Design Museum of American Designer Craftsmen. June Rose is currently the manager of the Boothbay Region Art Foundation, which was founded in 1964 by a group which included my Dad. Both Bob and June are genuinely generous and good hearted.

We are seeking other board members with complimentary talent and a mutually compatible vision and philosophy.

Your donation to help us with the initial expenses of getting this Museum started will be greatly appreciated impetus at this crucial formative moment. Help us to get to $5000.00 in the next week!

It is our hopeful dream that the Andersen Design flagship location can be bought back from the bank and made into a historically preserved location for The Andersen Design Museum of American Designer Craftsmen, similar to what has been done with Russel Wrights former home,.(see Manitoga.org/ ). preserving the memory of a culture that seems to be receding from the Boothbay Peninsula to make way for the plans of new and well financed interest groups. That is, however, currently beyond the scope of current transitional needs.

Thank you for taking the time to read and consider our request for funding.

Saturday, November 11, 2017

Navigating Through A Landscape of Linguistic Constructs And Other News



First the News!

THE OFF TOPIC NEWS ! This summer was a strange season for the garden. The field of poppies, a perennial subject of local social conversation, did not make its appearance. In the front garden, poppy pods dried up and fell to the ground without blooming. This fall there were hardly any fresh new poppy leaves in the front hill side garden. I foresee a scant display next spring. If the property falls into the hand of someone who will nurture the poppies, they will return.

It is our hopeful dream that the Andersen Design flagship location can be bought back from the bank and made into a historically preserved location for The Andersen Design Museum of American Designer Craftsmen, similar to what has been done with Russel Wright's former home,Manitoga.org, preserving the memory of a culture receding from the Boothbay Peninsula to make way for the plans of new and well financed centralized development groups. Otherwise the house and garden may be torn down to be replaced with the new homes of the new Boothbay and gardens composed of many annuals lined up in military formation, and not inviting to the free spirited Poppies.

THE WATER NEWS! Once the Knickerbocker Lake water supply was turned off and replaced with Adams Pond water, our issues caused by using the local water supply to mix ceramic casting slip disappeared. All is normal until next year when Boothbay goes back on the Knickerbocker Lake water supply. I reported the problem to many institutional sources to no avail. No one cared, preferring to relegate the issue to a problem specific to mixing ceramic casting slip and not a warning sign of a more far reaching problem with the water sourced from Knickerbocker Lake.

BOOTHBAY'S MINI_TURNPIKE POST GOES VIRAL! My post on the new obstruction planted in the middle of the roadway going to and from Boothbay Harbor,was my first ever viral post. likely helped along by the fact that it was the only media commentary on the local disaster. Although the town selectmen used taxpayer money to create a video to promote a yes vote for the mini-turnpike, and Wendy Wolf, spokesperson of the JECD group advocated for the construction of the obstacle, not a peep was to be heard from any of them once the concoction of transportation design was paid for by taxpayers from every corner of of our state and the deed was done. Only the corporate state's propaganda journal, Maine Biz, had anything to say about it, calling it Boothbay’s Route 27 roundabout revitalization. The article features Paul Coulombe talking about his purchase of the clipper mart which he bought only to clean it up of all the oil and grease that comes with gas stations needed to serve the predicted ever increasing traffic. The alleged heavy traffic was used to justify the use of state and local taxpayer money to create the tiny merry-go-round in the middle of a formerly rational road way. This is surely a testimony to Paul Coulombe's heart felt concern for our environment. Perhaps I should have appealed to Mr Coulombe to use his all mighty power to get local politicians to pay attention to changes in the Knickerbocker Lake water supply as revealed in the inability to use said water supply to mix ceramic casting slip

THE LONG ARM OF THE MAINE PROPAGANDA MEDIA NEWS !  My post How the MPERS Contract Came To Be Embedded in the Maine Constitution,was approved on Stand Up Republic Facebook page  but it is empty, except for a message that says "attachment unavailable", the attachment being my post How the MPERS Contract Came To Be Embedded in the Maine Constitution, a development which is recurring in many social media forums where I posted this post. Apparently I have not given myself permission to re-post my own post!  This is yet another example of how long the arm of propaganda is in Maine. The power of suppression can reach across the web and have my post vanished from Stand Up Republic, a Facebook page started by supporters of Evan Mcmullin! I am continually discovering how deeply Maine has become a state governed by fear. All the more reason to be fearless ! This is still America - NOT Amerika!

WE PASSED A MILESTONE ! The Andersen Design Museum of American Designer Craftsmen has gotten past the $1000.00 personal contribution required before we are permitted to apply for foundation grants. Locally, many thanks to Kathleen Cook for her generous contribution of $100.00. We are hoping to take a place in Edgecomb where we can set up a preview gallery and temporary working offices for the Museum. We still need to raise $1700.00, quickly so that we can procure the space. If you are reading this blog and appreciate an alternate voice, even if you do not agree with every thing I say, but just because you believe we should have a Maine media which gives voice to many different sides, then please consider showing your appreciation for freedom of voices, by making a contribution to The Andersen Design Museum of American Designer Craftsmen

Now that the gate  to our path to applying for grants,has finally opened, most of my writing time is dedicated to that mission. At the same time it is an eye-opening experience to the way our two tiered economy works I will be writing about those revelations in posts to come, commenting here only that there is a new political rhetoric that should qualify Andersen Design for a NEA grant, The new rhetoric- straight from the NEA website is about connecting the "creative" community with the ' non-creative" community. This is an interesting paradox when one considers that the "creative" community has come to be construed as the non-profit community by state government agencies such as the Maine Arts Commission,whose functions were radically expanded in direct correlation to the creation of the National Endowment For the Arts, a wealth re-distributive function of the federal government.The free enterprise economy is the wealth creating economy, a creative function, but in the linguistic constructs of the wealth re-distributive sector, the wealth creating economy is relegated as "the non-creative" sector. This informs why, in the dictionary used by boards of the wealth re distributive sector, the word "production' signifies one who is only in it for the money, part of the "wealth producing (creating) economy upon which the wealth re distributive economy draws. There is no rational explanation for why the boards have decided that one can only be one thing and not many things except for that is the way the grid mentality works,and why Andersen Design has never found its place on the grid. Consequently, to my view one has to extrapolate reality into a linguisitic construct and back again. If one can become a master at this new art form, one can artfully reinvent it in such a way that the linguistic construct mirrors the reality- an act of highly accomplished magic!  Until one masters this craft, one has to understand the conventions of the rhetorical art form, such as if one uses "production" to signify "making process", one will be rejected, but if one uses "making process" to signify "production", one will likely be rewarded. Something to be considered as one attempts to fit into this new rhetorical mindset, which, as seen below in a quote from the NEA website, has accomplished conflating everything with everything,Yet still the interpretation is up for grabs and anybody's rhyme or reason.
ART WORKS Guidelines: Creativity Connects Projects
Grant Program DescriptionCreativity Connects* is an initiative that shows how the arts contribute to the nation’s creative ecosystem, investigates how support systems for the arts are changing, explores how the arts can connect with other sectors that want and utilize creativity, A key component of Creativity Connects is a grant opportunity in the Art Works category that supports collaborative, mutually beneficial partnerships between the arts and non-arts sectors, specifically:

  • Agriculture
  • Business and Economic Development
  • Science
  • Technology
  • Healthcare
  • Community
  • Education
  • Environment
  • Military
  • Transportation 
After many years of being both accepted and rejected as an art form and as a craft by various boards, the question still remains "Will Andersen Design be accepted as a legitimate element of the newly emergent "creative ecosystem"?   Stay tuned for the next chapter to find out.

Monday, October 30, 2017

When the Maine Legislature Openly Plotted to Undermine the Maine Constitution



Refundable tax credits (redistribution of wealth) came into use in the USA in the mid seventies. Look what happened. Is it time to start letting the economy manage its self?
Quote from a Facebook conversation about the New Boothbay Round About:

Here's the deal. I don't care one way or another whether there is a frigging roundabout or not but i do think we need to look twenty or thirty years forward when we plan because growth is coming whether we like it or not. I'm not pushing it but i accept that it is coming. A threat? No just just that we haven't even begun to see the changes that will come. Apparently you all have mistaken me for someone who actually gives a shit what happens on the peninsular . as long as my property increases in value I'm good- local Boothbay person on Facebook
Many people and politicians conflate economic development with increasing property values. In that case the town is nothing more than a business investment for its stock holders (property owners) and economic development is only that which benefits property owners, a special interest group.

However, our constitutional form of government grants all inhabitants of the municipality, a vote in town matters. Maine has been a home rule state since 1969.  The Home Rule Amendment grants the power of municipal referendums, which Governor Longley's board of 1976 sought to eliminate.

Municipal Home Rule (1969)
Section 1. Power of municipalities to amend their charters. The inhabitants of any municipality shall have the power to alter and amend their charters on all matters, not prohibited by Constitution or general law, which are local and municipal in character. The Legislature shall prescribe the procedure by which the municipality may so act.
 Section 2. Construction of buildings for industrial use. For the purposes of fostering, encouraging and assisting the physical location, settlement and resettlement of industrial and manufacturing enterprises within the physical boundaries of any municipality, the registered voters of that municipality may, by majority vote, authorize the issuance of notes or bonds in the name of the municipality for the purpose of purchasing land and interests therein or constructing buildings for industrial use, to be leased or sold by the municipality to any responsible industrial firm or corporation. (emphasis mine)
The Task Force for Economic Redevelopment, Recommended Legislation for an Economic Development Program -110th Congress, called for the elimination of local referendums on municipal bond issues without identifying that the source of the power the Legislature sought to eliminate is the Maine Constitution, which every Maine legislator and governor takes an oath to serve.
2: eliminate the requirement for a local referendum on municipal bond issues (emphasis mine)
(The Report on the Governors Task Force of 1976 is not available on line but can be requested from the Legislative Law Library)
Astonishingly,  Seven Years after Maine became a constitutional home rule state, the Maine Legislature is on record as plotting to undermine  the municipal referendums provided by the home rule amendment.
This was the era when the Maine economy became centrally managed by and for public private relationships. The new system of government was created with the intent to over ride the Maine Constitution as the Report on the Governors Task Force of 1976 declares by the nature of its two primary goals. The source of the power of the authors of Maine's new public-private government is the Maine Constitution, but in order to implement a centrally managed economy by public private relationships, it was necessary to over write the Maine Constitution. Today we have statute after statue written for government by public private relationships, the method by which public funds for the Department of Transportation are distributed being but one example.The power group which initiated this change was the  Longley board, composed exclusively of the leaders of the wealthiest businesses in Maine. It is well worth requesting the Report of the Governor's Task Force of 1976 from the Maine Legislative Library. In my opinion it is a blatantly self serving document written in the interests of the wealthiest among us.

The author of the Facebook quote above suggest we think thirty years ahead. We cannot  know what changes will incur in the world in thirty years but the future of 1976 is unfolding in the contemporary moment. 

The Governor’s Task Force report recommended that two complimentary corporations be chartered by the Legislature, The Maine Capital Corporation and the Maine Development Corporation. The statute chartering the Maine Capital Corporation would attract stockholders by offering a 50% refundable tax credit, accompanied by a 100% tax exemption. The board used the following rationalization to justify funding a private investment company to the tune of 50% with taxpayer money:

This impediment ( lack of capital) to the development and expansion of viable Maine businesses affects all the people of Maine adversely and is one factor resulting in existing conditions of unemployment, underemployment, low per capital income and resource underutilization. By restraining economic development, it sustains burdensome pressures on State Government to provide services to those citizens who are unable to provide for themselves.
To help correct this situation, it is appropriate to use the profit motive of private investors to achieve additional economic development in the State. This can be accomplished by establishing an investment corporation to provide equity capital for Maine businesses and by establishing limited tax credits for investors in the corporation to encourage the formation and use of private capital for the critical public purpose of maintaining and strengthening the state's economy. The Governor's Task Force of 1976
This philosophy which justifies tax payer subsidization of the upper crust of the economy, and the transformation of our constitutional form of government into government as a state investment company in partnership with special private interests- aka oligarchy, has been advanced and entrenched by every administration and congress since. Central management is another name for totalitarianism, thus central management seeks to undermine local government and drive all components of society to be governed by central management (the state). Today it is hard to tell the difference between a private non-profit and government as all organizations follow the money orbiting the state investment bank. Government, using taxpayer money as pawns in the game can offer deals with which no private investment bank can compete.

This system has created targeted sector economics, which implies an un-targeted sector, "quality jobs", which implies that there exists jobs with no redeeming quality, and "certified retained businesses" which implies businesses that are selected to be discontinued by the overlords of central management.The government by public-private relationships system has created a class society that is not far different than communism as depicted in the current NetFlix drama, The Same Sky.Those who serve the state agenda are rationed the best perks-the real meaning of "quality jobs". Jobs serving in the State's industrial armies are just as subsidized as general welfare, but they are glorified, where as the growing population dependent on general welfare, which has increased as the middle became the beast of burden subsidizing both the top and the bottom, are denigrated. The top of the system is exploitative and the bottom is oppressive, designed to keep those at the bottom exactly where they are. We see this reflected in the Boothbay region rental housing situation. Houses which were once first homes are now summer homes or rented out as vacation rental, while the JECD's solution to the lack of homes for year round residence is "place more under one roof"- grid housing, which is usually highly regulated. Now that Boothbay has its own turnpike, perhaps we can  build some skyscraper boxes on the peninsula- that's looking thirty years ahead!

A system in which there are winners and losers cannot be said to serve the common good. Among the citizenry the only winners are those who land the high paying jobs targeted by the Legislature. General taxpayers must cover the burden of capitalizing the high paying jobs. The taxpayers of Maine do not see an individual benefit from the burden they share other than what hypothetically occurs through the trickledown effect, but the burden of costs also have a trickledown effect. In targeted sector economics, the bottom half of the economy subsidizes the upper half of the economy It is not surprising that the gulf between the haves and the have nots has increased in Maine and across the USA since the late 1970's when refundable tax credits first came into use.

The Economic Policy Institute (EPI) found that between 1979 and 2011, the top one percent in Maine captured 60 percent of all income growth

Between 1979 and 2007, the top one percent took home well over half (53.9 percent) of the total increase in U.S. income,” the EPI report found. “Over this period, the average income of the bottom 99 percent of U.S. taxpayers grew by 18.9 percent. Simultaneously, the average income of the top one percent grew 10 times as much— by 200.5 percent.
…EPI reinforces MECEP’s own analysis which shows that wage inequality in Maine is growing,” Martin said. “While Maine has some of the lowest levels of income inequality among states, the economy continues to fail too many hard working Mainers who are experiencing very little income growth. MECEP’s report, The State of Working Maine in 2013 , released in November 2013, highlights this fact showing that between the late 1970s and the mid-2000s, the average income- after federal taxes and programs such as food stamps -for the poorest fifth of Maine households grew just 27 percent, from $18,720 to $23,825 Middle-income households fared slightly better, growing 47 percent over the same period. Meanwhile, average income for the top 20% of Maine households grew by 67 percent. Maine Center For Economic Policy February 2014 [
Factor in that the purchasing power of the dollar decreased by 70% between 1979 and 2007.

I am not a tax accountant, however I will point out that the analysis counts welfare programs for the bottom as income but makes no mention of corporate welfare programs for the top. Corporate taxes are often passed through as individual taxes and so the question becomes, is the divide even greater than is reported if welfare is reported as income for the bottom but corporate welfare is not reported as income for the top ? 

Now we see the JECD group making vague references to the 73 stakeholders, a term that sounds very similar to stockholders. The JEDC group tells the public only what it wants them to know and that does not, to my knowledge, include the identity of the 73 "stake holders" Least of all does the JECD share with the public any information about the terms of agreement between the JECD and the "stakeholders". Private privacy is protected in government by public private relationships.



Saturday, October 28, 2017

JECD Group Holds Master Plan Pow Wow for Boothbay Peninsula

The most honest statement to come out of the ringleaders of the Joint Economic Community Development Group in their first workshop program was "none of us are experts on economic development", which in my most humble opinion is evident in the fact that the JECD begins with the premise that economic development can be master minded by central management.

The article in the Boothbay Register begins with this paragraph:
The Joint Economic Development Committee master plan workshop on Thursday, Oct. 12 discuss findings from stakeholder interviews conducted early last month. The interviews centered around building an overall economic development strategy for Edgecomb, Boothbay, Boothbay Harbor and Southport.
Who are the stakeholders?  A search for articles in the Boothbay Register comes up short. Why is the public not told who the stakeholders are. Since the taxpayers of Boothbay and Boothbay Harbor footed the bill for the JECD's consultants, why are they not the stakeholders?
stake·hold·er
1.
(in gambling) an independent party with whom each of those who make a wager deposits the money or counters wagered.
2.
a person with an interest or concern in something, especially a business. Google dictionary

In an  October 3rd article in the Boothbay Register,  announcing the work shop, we are told that Camoin Associates, the New York consulting firm, hired by the JECD,  spent a full hour and a half touring the region and interviewed the mysterious 73 stakeholders, still not explaining why 73 people are the stakeholders in a project financed by local taxpayers.
In June, the JEDC hired Camoin Associates to draft a regional economic development master plan. Camoin began examining the region’s potential for expansion on July 14 during a 90-minute van tour of Boothbay, Boothbay Harbor, Edgecomb and Southport. During the tour, Camoin interviewed 73 stakeholders in the region’s economic development. The firm also separately interviewed Bryer and Boothbay Harbor Town Manager Tom Woodin. 
Although the JECD was formed by the selectmen of Boothbay and Boothbay Harbor, without the consent of inhabitants of the two municipalities, the stated purpose of the JECD group is to advocate for a centrally managed economy of all four municipalities on the Boothbay Peninsula, Boothbay, Boothbay Harbor, Southport, and Edgecomb. In the articles I have been following about the JECD, there are recurring mentions of  taxpayers from Southport and Edgecomb not chipping in to pay for the JECD's unsolicited services Why are the 73 stakeholders not responsible for the financing the JECD's designs for our communities, since they clearly have their own special interests being represented over and above the general inhabitants of the peninsula?

The economic development pow wow was conducted by Camoin Associates. When I learned about Camoin Associates, I took it upon myself to inform them about the Andersen Design Museum of American Craftsmen. Having been dismissed by three members of the JECD group when I approached them for advice or assistance, I knew that if I did not speak for our own interests, no one else would. I received what came across as the usual formality in response, a conclusion confirmed when Caimon Associates did not stop by to interview Andersen Design in their trip around the region, which as stated targeted the club of mysterious shareholders, exclusively.

NEDA’s Core Philosophy:“We believe economic development is inseparably intertwined with both community development and the leveraging of community assets to drive change. By forming collaborative partnerships pursuing goals similar to ours, local resources are maximized and the foundation for community sustainability is established from local stakeholders and small businesses committed to their common future”.https://www.nedaonline.org/

Jim Damicis was the spokesperson for Caimon Associates I googled Mr Danicus and learned that Jim Damicis is the past President of the Northeastern Economic Development Association, a non-profit organization in the economic regionalism business. I oppose regionalism on the grounds that regionalism is a device sometimes used to supplant the public referendums, required by the Maine Constitution, with governing boards, as the JECD appears ambitious to become.
2: eliminate the requirement for a local referendum on municipal bond issues
 Governor’s Task Force for Economic Redevelopment, Recommended Legislation for an Economic Development Program -110th Congress
I was attracted by a webinar listed on Northeastern Economic Development Association website THE CASE OF DISAPPEARING MAIN STREET RETAIL, composed in part by Jim Damicis.

The first of the five trends that the report says will influence the future of retailing are consistent with my pitch for the Andersen Design of American Designer Craftsmen as a focus for attracting designer craftsmen to a region. as told,separately, to the deaf hears of three representatives of the JECD group.

Main Street Retailers need to provide an authentic
local experience through products AND services

  • Hard to ship items
  • Freshly prepared foods with local ingredients
  • Items that highlight local pride or community spirit
  • Experiences that are dependent on local setting or social interactions THE CASE OF DISAPPEARING MAIN STREET RETAIL

Three out of four of the high lighted points are advantages which an  Andersen Design Museum of American Designer Craftsmen can deliver, the more so because of the Andersen Design brand itself. Our customers are very loyal and will travel many miles out of their way just to come to our gallery. Our customers often spend a great deal of time deliberating which seal's eye's speak to them, which one can only do as an in-store experience. From the very first day, in 1952, that Andersen Design opened its gallery in a 200 year old barn on Southport Island, we offered a completely unique product which could not be found else where and was instantly successful with locals and summer visitors alike. We frequently hear from our customers that they are so glad we are still here, which may not be the case for much longer.
The downtown development table wished to see a longer tourist season, a more vibrant diversity of shops, restaurants, and lodging, and a downtown that is not virtually shut down after tourists leave until the next season. Master plan workshop gets communities talking
In the section on advise for community leaders, the report recommends:
Understand and Play to Your Strengths
  • Every community has a unique portfolio of hidden assets
  •  Culture
  •  History
  • Geographic location
  • Local industries, etc.
  • & People
  • Recognize which assets could be better leveraged
  • Historical architecture is often neglected
  • Target under performing or vacant space
In the TOWN OF BOOTHBAY, ME COMPREHENSIVE PLAN 2015, it is advised that if the town works with the state agenda, it can get state money. That may be so but in so doing the town betrays the function that local resources are supposed to serve as representatives of the local community. The State early on excluded the retail sector from its economic development benefits, despite the fact that the State reels in money through sales taxes.

Title 5: ADMINISTRATIVE PROCEDURES AND SERVICES
Part 18-A: ECONOMIC AND COMMUNITY DEVELOPMENT
Chapter 383: ECONOMIC AND COMMUNITY DEVELOPMENT
Subchapter 2: BUSINESS DEVELOPMENT
Article 2: BUSINESS ASSISTANCE REFERRAL AND FACILITATION PROGRAM: PROGRAM RESPONSIBILITIES AND DELIVERY

§13063-C. Job Retention Program

2. Definitions.  As used in this section the following terms have the following meanings.
A. "Certified retained business" means any for-profit business in this State other than a public utility as defined by Title 35-A, section 102 that retains 100 or more qualified employees in this State and that meets all of the following criteria to the satisfaction of the commissioner:
(1) The business is not engaged in retail operations; or, if it is engaged in retail operations, less than 50% of its total annual revenues from state-based operations are derived from sales taxable in this State or the business can demonstrate to the commissioner by a preponderance of the evidence that any increased sales will not include sales tax revenues derived from a transferring or shifting of retail sales from other businesses in this State; and
(2) The commissioner determines that the business is a successor to a business that would have ceased operations in this State but for the acquisition of that business after September 1, 1996 by the applicant by any means and the applicant demonstrates to the commissioner its intention to continue to operate and employ qualified employees in the State.
For purposes of this paragraph, "retail operations" means sales of consumer goods for household use to consumers who personally visit the business location to purchase the goods. [1997, c. 393, Pt. A, §13 (RPR).]
B. "Qualified employees" means full-time employees who are employed by a certified retained business, for whom a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 101 to 1461, as amended, and group health insurance are provided, and whose income, calculated on a calendar year basis, is greater than the average annual per capita income in the labor market area in which the qualified employee is employed. Qualified employees must be residents of this State. [1997, c. 393, Pt. A, §13 (RPR).] 

The above is taken from the statute governing the Department of Economic and Community Development, which serves as the planning board for the FAME corporation, a Maine government corporation which concentrates and redistributes capital to its targeted sector offering "quality jobs".

The first definition A, shows a fundamental fallacy of centrally managed economic development policy. The economy either consists only of  businesses hiring more than 100 employees or those businesses are the only ones targeted for retention by central management. Further more the policies of central management are extremely biased against the retail sector, which are do not offer "quality jobs" pursuant to central management's definition, which is found in. definition B. Imagine how the cost of everything would rise if the retail sector conformed to state "certified retained business" specifications! Imagined how difficult it would be to capitalize a retail business if retail businesses had to conform to state "quality jobs" definition- a term also used by the JECD group ?

By the policies of the state, a "certified retained business" employs over 100 employees, who are paid higher than average wages and receive retirement benefits and health care. If a business can meet those requirements,then it is eligible for the whole package of corporate welfare entitlements distributed by the state to make all of those benefits affordable to the states targeted sector. Imagine what an economy composed of only "certified retained businesses" would look like. This is why we need The System Outside the System more than ever. Visualize a society with no small businesses, in which everyone must necessarily wok for a large corporation and the large corporations orbit around the state with each one vying for their handouts from big daddy.

As Andersen Design faces relocation, getting beyond the $1000,00 in personal contributions required by our fiscal sponsor before we can apply for foundation grants is more important than ever. Contributions made to the Andersen Design American Phoenix Project are tax deductible. All contributions made can be used to fund a space where Andersen Design can have its 65 years of vintage work on display and organized, as well as office, photography, and graphic design space needed to carry on the archival data base. Additional funding will allow us to hire and train assistants,

Monday, October 23, 2017

Boothbay's New Mini-Turnpike- Not for Your Driving Pleasure!

I have now driven around the new traffic configuration at the Boothbay Center from both directions, enough to know that even at times with no traffic I prefer to avoid it. The curves are cramped as the country road is transformed into a mini-turnpike, that driving experience I am so relieved to leave behind when one takes the turn onto the peninsula. Driving on our small town roads seems rational until one encounters this new web of yielding points with traffic converging from all directions.

The first time I drove through the new turnpike was during the daytime hours There was an unusually long wait to get through a stretch of road which was formerly a breeze, especially when there were no events taking place in the park. I gave the traffic jam the benefit of the doubt, imagining that it was occurring from still ongoing construction taking place somewhere that I could not see. I waited a very long time for traffic to pass by so that the cars I was following could yield into the pattern. There are no traffic lights to provide a break when a long trail of cars is already in the circle. The four way stop has been moved and reconfigured to cause blockage on the main through way.

I was recently told that before the obstruction was built there were long waits in the summer due to traffic coming from the Botanical Gardens. Although I frequently drove the route at various times of the day, I had never encountered the heavy traffic, but it seems obvious that re-configuring the road does not change the amount of traffic using the road. In the old configuration, cars coming from the side road merged with the main route. Now drivers on the central through way have to wait to  merge with the traffic coming from the side roads. Or it can be looked at another way. Roads going to and from the Botanical Gardens and the Boothbay Harbor Country Club are now treated as the main through way and the road going to and from town is the side road. What does that tells us about central planning's vision for our community?

Coming from the direction going into town, the road feels even more congested as one has an open view of two closely situated yielding points coming from either side. There was no traffic when I passed through but it appeared that I was travelling on the lane into which which all others merge. It felt unpleasant. inelegant, and dangerous in a way that I never felt with the old four way stop.

The old system was respectful of cars traveling the less traveled lanes. The four way stop means that cars driving on the less traveled roads do not have to wait for all cars coming from a more heavily traveled direction. There was a natural order to the traffic flow. First car to get to the four way intersection goes first. Travelling through the new yielding traffic pattern when traffic is heavy, means one has to wait on the former main drag to enter a cramped circular pattern. How are large flatbed trucks going to negotiate through this tight squeeze?

The contrast between driving on the back roads and trying to get through the new turnpike at the Boothbay Center symbolizes the "two Maines", a term which has a variety of interpretations, and now a new one. There is the Maine that evokes freedom, far from the rat race of urban living, and the Maine that feels manipulative, controlling and rapidly developing into a culture dulled by class snobbery. When travelling on the mini-turnpike, I no longer feel welcome in my home town, When, travelling on the back roads, I reconnect. Frame of mind matters. The Boothbay Center has been transformed into a symbol of dominance of power and money over equality and mutual respect among people. The mini turnpike does not respect the driver. It rules the driver with new traffic patterns created in the interests of two new behemoths.

Sunday, October 22, 2017

How The MPERS Contract Came To Be Embedded in the Maine Constitution

Is The Maine Public Retirement System Unconstitutional?


According to the Maine Public Employees ComprehensiveFinancial Report of 2010, the Maine Public Employees Retirement System was established in 1942 to provide services for retiring public employees. No information is given about how the Public Employees Retirement System was legally structured in 1942. In the report MPERS is described as “an independent public agency of the State of Maine that traces its history to 1942”. Wikipedia uses the same term but when the link is clicked it reveals that Wikipedia has no idea what "independent public agency" means.  An online search for history of MPERS between 1942 and 1985 comes up empty.

 In 1985 during the administration of Governor Joseph E Brennan, the Maine Legislature passed a statute announcing its intentions of using general taxpayer monies to provide for retirement funds and death benefits for public employees, a faction which, incidentally, includes the Legislature.
§17050. Legislative intent
It is the intent of the Legislature to encourage qualified persons to seek public employment and to continue in public employment during their productive years. It is further the intent of the Legislature to assist these persons in making provision for their retirement years by establishing benefits reasonably related to their highest earnings and years of service and by providing suitable disability and death benefits. [1985, c. 801, §§ 5, 7 (NEW).]
In 1993 under the administration of Governor John R McKernan, by a special act of legislation, the Maine Public EmployeesRetirement System became a corporate instrumentality of the state.[
Title 5:ADMINISTRATIVE PROCEDURES AND
SERVICES
Part 20: STATE RETIREMENT SYSTEM
Chapter 421: GENERAL PROVISIONS
Subchapter 3: ESTABLISHMENT AND
ADMINISTRATION
§17101. Establishment1. Purpose.  There is established a retirement system, the functions and operations of which are under the supervision of the board, for the purpose of providing retirement allowances and other benefits under this Part for employees.
[ 1993, c. 410, Pt. L, §14 (AMD).]
5. Body corporate and politic.  The retirement system is a body corporate and politic and an incorporated public instrumentality of the State and the exercise of powers conferred by this Part are held to be the performance of essential government functions.
[ 1993, c. 410, Pt. L, §16 (NEW).]
Article IV Part Third Section 14 of the Maine Constitution prohibits the Legislature from chartering corporations by special act of legislation with only two exceptions, one being municipal purposes and the other if the object of the corporation cannot be attained another way. Since the Maine Public Employees Retirement System was established in 1942 and it was not a corporate instrumentality of the state at that time, its objects had been attained in another way from 1942 to 1985, which arguably  makes the MPERS state corporation unconstitutional.

 In 1995 under the administration of Governor Angus King, contractual terms of agreement with the MPERS corporation were embedded in the Maine Constitution. Although MPERS itself is established only by statutory rule of law:

Maine Constitution
Article IX.
General Provisions.
Section 18.  Limitation on use of funds of Maine State Retirement System.  All of the assets, and proceeds or income therefrom, of the Maine State Retirement System or any successor system and all contributions and payments made to the system to provide for retirement and related benefits shall be held, invested or disbursed as in trust for the exclusive purpose of providing for such benefits and shall not be encumbered for, or diverted to, other purposes.  Funds appropriated by the Legislature for the Maine State Retirement System are assets of the system and may not be diverted or de-appropriated by any subsequent action.
Section 18-A. Funding of retirement benefits under the Maine State Retirement System.  Beginning with the fiscal year starting July 1, 1997, the normal cost of all retirement and ancillary benefits provided to participants under the Maine State Retirement System must be funded annually on an actuarially sound basis.  Unfunded liabilities may not be created except those resulting from experience losses.  Unfunded liability resulting from experience losses must be retired over a period not exceeding 10 years.
Section 18-B.  Payment of unfunded liabilities of the Maine State Retirement System.   Each fiscal year beginning with the fiscal year starting July 1, 1997, the Legislature shall appropriate funds that will retire in 31 years or less the unfunded liabilities of the Maine State Retirement System that are attributable to state employees and teachers.  The unfunded liabilities referred to in this section are those determined by the Maine State Retirement System's actuaries and certified by the Board of Trustees of the Maine State Retirement System as of June 30, 1996.

A Constitution defines the philosophy and structure of government The Constitution does not write policy. Policy is suited to statutory law, which can be changed more readily than the Constitution can be amended. The Constitution is the philosophical basis of law with which policy law must be consistent. 

Tinkering with The Maine Public Employees Retirement Fund


 In 2009 Senator Peter Mills sponsored §1026-T.Innovation finance program which allows the Maine Public Employees Retirement System fund to be used for investment purposes. The act was passed by the Legislature and signed into law by Governor Baldacci.
§1026-T. Innovation finance program 
1. Established.   The authority may create and oversee a state innovation finance program, referred to in this section as "the program," to increase the supply of venture capital to the economy of the State by improving access by innovative businesses in this State to venture capital funds. Investment performance of the program may be partially guaranteed by refundable tax credits issued by the authority to the retirement system. This section does not mandate or require any investment by the retirement system or give the retirement system any economic development responsibilities, its sole responsibility being to safeguard, invest and increase retirement system assets consistent with its fiduciary duty to its members. [ 2009, c. 633, §4 (NEW)]
  Refundable tax credits as authorized by this subsection may be redeemed only as necessary to offset 80% of any realized loss of capital in the program. [2009, c. 633, §4 (NEW).]
 A certificate of tax credits issued by the authority under this section is binding on the State and constitutes a solemn contractual commitment of the State protected under the contract clauses of the Constitution of Maine, Article I, Section 11 and the United States Constitution, Article I, Section 10. Once issued, as long as the retirement system is not in default under its agreement with the authority with respect to any certificate of tax credits, the certificate may not be modified, terminated or rescinded until the certificate expires, is redeemed or is released by the retirement system. [2009, c. 633, §4 (NEW).]
 §5219-EE. Maine Public Employees Retirement System innovation finance credit
1.Credit allowed.   The Finance Authority of Maine is authorized to issue to the Maine Public Employees Retirement System, referred to in this section as "the retirement system," a refundable credit against the taxes imposed by this Part in an amount certified by the Finance Authority of Maine as equal either to $4,000,000 or 80% of any loss of capital sustained in the innovation finance program established under Title 10, section 1026-T, whichever is less. Upon receipt of a certification as provided in Title 10, section 1026-T, subsection 4, paragraph E, the Department of Administrative and Financial Services, Bureau of Revenue Services shall pay the amount certified to the retirement system as provided in that subsection.
3. Limitations.   A credit under this section may not be redeemed for any loss occurring after July 1, 2028. Pursuant to Title 10, section 1026-T, total credits redeemed may not exceed $20,000,000.
[ 2009, c. 633, §5 (NEW).]

The first and last sentences of §1026-T. Innovation finance program: 1  contradict each other. The first sentence identifies the purpose of 1026-T. Innovation finance program  as "To increase the supply of venture capital to the economy of the State " The last sentence says "its sole responsibility being to safeguard, invest and increase retirement system assets consistent with its fiduciary duty to its members." The means by which §1026-T. Innovation finance program will "increase the supply of venture capital to the economy of the State"is by "by improving access by innovative businesses in this State to venture capital funds."

§ 1026-T. Innovation finance program is written to serve dual special interests groups-one identified as "innovative businesses" and the other is the Maine Public Employees Retirement Fund. It is important to note the dual special interests that the statutory rhetoric claims to serve for the purpose of extrapolating the future evolution of both public policy and the Maine Constitution. One must ask if the special interest group, The Maine Public Employees Retirement Fund can have their contractual agreement embedded in the Maine Constitution, can it come to pass that the private and special interest business partners of the state will do the same?

To insure against the possibility of further special private interest contracts being embedded in the Maine Constitution, the MPERS contract needs to be removed from the Maine Constitution with the repeal of  Article IX Section 18-A & B. There should be no further public consent to changes in the contract. The reason for embedding the MPERS contract into the Maine Constitution is so that it cannot be easily changed. That works both ways. Let the Legislature seek a way to convert this special interest corporation back to the private sector, while protecting the interests of those public employees who are currently affected the best as possible. Then, in the future the MPERS contract can be easily changed as needed without asking public consent.

§1026-T. Innovation finance program:1B uses the authority of the Maine and United States Constitutions to enforce its contract with the Maine Public Employees Retirement System by referencing protection under the contract clauses of the Constitution of Maine, Article I, Section 11 and the United States Constitution, Article I, Section 10. Yet Section 1 of §1026-T. Innovation finance program, begins with words identifying its purpose as the creation and overseeing of a state innovation finance program to improve access by "innovative businesses" in Maine to venture capital funds. By such a statement of purpose §1026-T violates The Maine Constitution, Article IX, General Provisions, Section 18 which states that the Maine Public Employees Retirement System is created for the exclusive purpose of providing employee benefits and shall not be diverted to other purposes.

There is wiggle room to argue that the investment program is income of MPERS but the fact that §1026-T states as its purpose the intent to create venture capital funds is problematic for such an argument. In addition, §5219-EE. Maine Public Employees Retirement System innovation finance credit, in allowing for the potential creation of a new public liability valued at four million dollars with a total limit of twenty million dollars, violates the Maine constitutional limit of two million dollars on liabilities established under the Maine Constitution, General Provisions, Section 14.
Maine Constitution
Article IX.
General Provisions
Section 14.  Authority and procedure for issuance of bonds. The credit of the State shall not be directly or indirectly loaned in any case, except as provided in sections 14-A, 14-B, 14-C and 14-D. [1]  The Legislature shall not create any debt or debts, liability or liabilities, on behalf of the State, which shall singly, or in the aggregate, with previous debts and liabilities hereafter incurred at any one time, exceed $2,000,000, except to suppress insurrection, to repel invasion, or for purposes of war, and except for temporary loans to be paid out of money raised by taxation during the fiscal year in which they are made
Are the contractual terms of agreement embedded into Maine’s Constitution to be granted a higher sanction of authority while Article IV Part Third, Sections 13 & 14, and Section 8 on Taxation, Article IX, General Provisions, Section 14, and Municipal Home Rule to be routinely disregarded by our law makers?

The full function of the Maine Public Employees Retirement System as an instrumentality of the state is revealed in  §1026-T, enabling MPERS to be used as a venture capitalist fund.

The creation of a liability risk for the general taxpayers not sharing in gains is unconscionable on the part of the Maine Legislature and MPERS. In 2011 the Maine taxpayer’s debt to MPERS had reached 4.4 billion dollars 

§1026-T Maine Public Employees Retirement System innovative financing cannot be said to be a public benefit as it creates a low risk-high yield investment opportunity for one faction of the public while creating a liability for loss on the investment for the taxpayers of Maine

In the private sector the faction responsible for 80% of the losses is entitled to 80% of the gain. Like many other acts distributing refundable tax credits, this act socializes the risk while privatizing the gain.

Public Employees constitute a private faction with special interests as articulated by James Madison in Federalist Paper #10

By a faction, I understand a number of citizens, whether amounting to a majority or a minority of the whole, who are united and actuated by some common impulse of passion, or of interest, adverse to the rights of other citizens, or to the permanent and aggregate interests of the community.” James Madison, Federalist Paper #10
It is averse to the rights of the taxpayers of Maine to make them liable for the loss on investments while the gains are exclusively granted to a special interest faction





[1] Section 14-A.  Authority to insure industrial, manufacturing, fishing, and agricultural mortgage loans. Section 14-B.  Authority to insure revenue bonds of the Maine School Building Authority. Section 14-C.  Authority to insure mortgage loans for Indian housing. Section 14-D.  Authority to insure Maine veterans' mortgage loans, and to appropriate moneys and issue bonds for the payment of same.

[