Last week, the Maine Center for Public Interest Reporting published a story headlined, “Risky business tax breaks cost state $100 million per year.” At the time of publication, we had not yet received a response from the state chief budget officer, Sawin Millett, the commissioner of administration and finance. A response has since been sent to us, via email. Here is our question and his answer:
MCPIR question: Given the 2006 OPEGA study of 46 economic development programs (including related ”tax expenditure” data) rated some of those programs as “high risk,” why is the Governor continuing those programs?
Millett: Quite simply, three Committees of the Legislature reviewed the OPEGA report over the 2007-2008 biennium and took no action to modify or eliminate those programs – with the single exception you have referenced – thus those programs have remained in statute. It is my personal expectation, however, that there will likely be specific proposals advanced, and considerable discussion had, during the current Session as to whether all such programs should remain intact, going forward.