What does that cost?How about $602,181,397 from 2003 to 2005.On an annual basis, that’s about the size of the hole in the state budget that Gov. Paul LePage and the legislature have spent the last few months trying to fill.And those numbers, which come from a 2006 study by the stateOffice of Program Evaluation & Government Accountability (OPEGA), don’t include the administrative costs. That adds another $22 million, according to OPEGA.
For instance there is this:
Another skeptic has been Peter Mills, the former Republican legislator from Cornville and currently the executive director of the Maine Turnpike Authority.
Maine, he said, may have to keep programs like PTDZ not because they can be proven to work, but because most other states have them, and Maine has to compete.
“The arbitrary public giveaways created by the patchwork competition among the states seems unhealthy for our economic future,” he said. “At the very least, it breeds cynicism.
Other states in the Northeast offer financial incentives in the form of cash payments for new employment, tax reimbursement programs, tax credits and/or temporary reduction in corporate income taxes. This draws attention away from the true bottom line: These states are simply trying to temporarily defer the pain of their high taxes. At some point your business will have to pay for the incentive programs they offer you.
Consider this fact: The more people and businesses that rely on government subsidies, the larger government grows; and the larger government grows, the more taxes needed to sustain this growth—and it's the business community that usually ends up paying for a higher proportional share of new or higher taxes.
There is also a temptation during these difficult economic times for states to increase taxes as a way to cover the cost of state deficits. New Hampshire has not fallen into this trap. Instead of creating new taxes or increasing taxes or subsidies, New Hampshire has cut spending to balance the budget.
"In the end, programs such as PDTZ may be questioned, problems may be identified, but they live on because changing them, experts say, poses political and financial risks."
Despite the huge increases in expenditures for economic development programs that were shown to have a questionable effect at a huge expense to the taxpayer in the year 2006. our legislature has determined such reports to be too expensive to conduct, even as they radically escalate the transfer of the people's wealth into the hands of their selectively chosen new owners of the means of production in the legislature's policy of "targeted sector economics"!
"Section D of the Seed Capital Tax Credit changes the aggregate limit for a private venture capital fund from $500,000 to $4,000,000 and strikes out the individual limit within the aggregate for entities treated as a flow-through entity for tax purposes."
"OPEGA said the Department of Economic and Community Development (DECD), which administers PTDZ, should make an annual report to the legislature that assesses the program against criteria in the state law called, “Evaluation of Economic Development Programs.”
The Center asked DECD for those reports. A report was only done once, in 2008, because money was never appropriated to do it again, according to the current DECD commissioner, George Gervais, who took over less than a year ago.
That report -- the Maine Comprehensive Economic Development Evaluation (MCEDE) -- cost the state $150,000". quoted from Pine Tree Watchdog article
It's a good thing the Maine people have such conscientious public servants- always looking to be frugal with the public's money, with an exception for when they are transferring that money to "the targeted sector" ! As The Pine Tree Watchdog article reports, the legislature goes to the beneficiaries of the transfers of wealth to get an idea about how effective their economic development programs are - just as the title the seed capital tax credit bill includes the words "Expanded and Improved" because it is expanded and improved for the private corporations and capitalists. In the lexicon of our state legislature "public" is code for the "targeted sector".