Gubernatorial Address: Maine, 1949

Metadata	Value
Governor	Frederick G. Payne
State	Maine
Year	1949
Delivery Date	January 10, 1949
Governor's Party	Republican
GPID	7189c9722d09910891772e384a7c8e32
Primary Source URL	Link
Raw Extracted Text URL	Link

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On January 12, 1949, the House of Representatives discussed several bills and resolutions, including an increase in state pension for Lester A. Fogg, the creation of the Office of Fire Service, and repairs of roads in deorganized towns. The Senate proposed a convention of both branches of the Legislature to invite Governor Frederick G. Payne to attend and communicate. The House concurred with the proposal and a Joint Convention was formed. The Governor addressed the convention, discussing state finances, the budget, and the need for more good roads, among other topics.

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LEGISLATIVE RECORD-HOUSE, JANUARY 12, 1949 60 sented by Mr. Robbins of Houlton) (Ordered Printed) Sent up for concurrence. Pensions Resolve Providing for an In- crease in State Pension for Lester A. Fogg, of North Lovell (H. P. 12) (Presented by Mr. McKeen of Lov- ell) Sent up for concurrence. State Lands & Forest Preservation Bill “An Act Creating the Office of Fire Service” (H. P. 13) (Pre- sented by Mr. Spear of So. Port- land) (1000 copies ordered printed) Sent up for concurrence. Ways & Bridges Bill “An Act relating to Repairs of Roads in Deorganized Towns” (H. P. 14) (Presented by Mr. Mc- Keen of Lovell) (Ordered printed) Resolve in favor of the town of Yarmouth (H. P. 15) (Presented by Mr. Knapp of Yarmouth) Resolve in favor of the town of Harpswell (H. P. 16) (Presented by Mr. Prince of Harpswell) Sent up for concurrence. A message was received from the Senate, through its Secretary, proposing a Convention of both branches of the Legislature, to be held forthwith in the Hall of the House of Representatives, for the purpose of extending an invitation to His Excellency, Governor Fred- erick G. Payne, to attend the Con- vention and make such communica- tion as he may be pleased to make On motion by Mr. Burgess, of Limestone, the House voted to con- cur with the Senate in the pro- posal for a Joint Convention, and the Clerk was charged with and conveyed a message to the Senate, informing that body that the House concurred in the proposition for a Joint Convention of both branches of the Legislature. The Clerk subsequently reported that he had delivered the message with which he was charged. The Senate then entered the Hall of the House and a Joint Conven- tion was formed. Chair. Penobscot, it was Representatives: Hall. Convention as follows: the 94th Legislature: anced! is sound budgeting. IN CONVENTION The President of the Senate, the Honorable Burton M. Cross, in the On motion by Senator Haskell of ORDERED, that a committee be appointed to wait upon his Excel- lency, Governor Frederick G. Payne, and inform him that the two branches of the Legislature are in Convention assembled, ready to re- ceive such communication as he may be pleased to make. Which was read and passed. The chairman appointed: Senators: Haskell of Penobscot Sleeper of Knox Larrabee of Sagadahoc Fuller of Buckfield Ricker of Turner Merritt of Mapleton Chaples of Hudson Campbell of Augusta Fitch of Sebago Lacharite of Brunswick Senator Haskell for the Com- mittee subsequently reported that the Committee had discharged the duties assigned it, and the Governor was pleased to say that he would forthwith attend the Convention. Whereupon Governor Frederick G. Payne, attended by the Executive Council, entered the Convention The Governor addressed the Mr. President and Members of In this discussion of State finances for the ensuing biennium, it is my purpose to acquaint you with requests of departmental heads and State agencies together with the over-all financial picture. The budget presented you is bal- It reflects the results of careful study and represents what can be done with existing revenues. This It permits the continuation of all services of government for the bi- ennium at a level comparable to, or greater than, the present level. No new taxation is required. However, any major expansion beyond recommendations in this budget will necessitate revenues greater than present levies provide. It is your task to determine whether our people want such ex- pansions as already requested with sufficient sericusness to be willing to pay for them through a new tax source. We must recognize that in- creased costs of living affect gov- ernment just as it does the indi- vidual. We are dealing with the same essentials, personnel, com- modities, etc. of: appropriated. inatory levies. cial policy. determine. LEGISLATIVE RECORD-HOUSE, JANUARY 12, 1949 Fiscal Policy My financial policy shall consist 1. Strict attention will be given to the administration of our laws and efficient use of the funds 2. There must be a just and equitable distribution of the tax burden with no unfair or discrim- 3. An accurate determination must be made for the need of each request for appropriations. We must be satisfied beyond reasonable doubt our people both desire and will support by taxation such requests. 4. We will then satisfy ourselves that a final determination on finances meets the test of strict economy and fair and just taxation. I believe firmly in this basic finan- General Fund This message is not the proper vehicle in which to recite conclu- sions relative to the merits of each and every request, whether granted or omitted. Each, properly will be discussed before the appropriations and financial affairs committee. Their recommendations and your final action will work out of the budget such changes as you may Revenues have been reasonably estimated. You will be advised of any revision. It therefore must be anticipated that approval will not be given to appropriation meas- ures which exceed our income. There has been but one major change since the printing of the budget document. Additional rev- enues of $336,581 in each year of the biennium accrue to the general fund as a result of an increase in property valuation as recently re- ported by the Equalization Board. Of this sum, $47,003 each year must be allocated to the University of Maine under provisions of the 1 mill tax law. This means that $289,578 is available to add to such appropria- tions as may be determined by you. Based on needs set forth at budget hearings, it is suggested for your consideration that the following amounts be added to recommenda- tions appearing in the budget doc- ument: Maine Development Commission This will make available $300,- 000.00 a year to the Commission. Old Age Assistance Aid To Blind These two increases will permit liberalization of these programs. Charitable Institutions as fol- lows: Bangor Anti-Tuberculosis Association Children’s Aid Society Healy Asylum Maine Children’s Home Society Maine Institution For The Blind Opportunity Farm St. Joseph’s Orphanage St. Elizabeth’s Asylum St. Louis Home and School For Boys Temporary Home For Women and Children York County Children’s Aid Society Total This recommendation is to rec- ognize the apparent need of these private institutions furnishing val- uable service to the State to meet the increased cost of operation. Forestry - Entomology Such increase will provide for a $20,500 each year $180,000 each year $15,000 each year each year $12,000 $15,000 each year 61 $1,500 500 1,500 1,000 3,000 1,250 700 1,000 750 500 300 62 more effective control of insect disease in our forest resources. Forestry - Nursery This will allow for greater con- servation activity. Labor - Statistical and Inspection Such increase will aid in build- ing a stronger Department of Lab- or and Industry. Maine Maritime Academy This provision should permit the Maritime Academy to more fully comply with its requirements. With the exception of education, to be discussed later, this budget allows for normal operation with- out curtailment of general gov- ernmental activities. My basic aim is to provide effi- cient operation of state govern- ment. It may become desirable and necessary to ask your consideration of statute changes that this end may be accomplished. The document before you pro- vides funds to continue existing services. There also will be pre- sented for consideration, requests for expansions as well as new ser- vices. The immediate absence of funds should not preclude thorough study, based solely on merits. Out of budget hearings came these seemingly sound recommen- dations, which are offered for your earnest consideration and decision. 1. Re-examination of Bangs Disease problem. 2. Minimum grant of $350,000 annually to Maine Development Commission. 3. Joint financing by Depart- ment of Sea and Shore Fisheries and Inland Fisheries and Game of the Atlantic sea run salmon pro- gram. 4. Massing of parole personnel in one division of government. 5. Adoption of encumbrance system in the Bureau of Accounts and control. It is basic that Maine needs more good roads. Maine highway users are entitled to an aggressive, well planned long LEGISLATIVE RECORD-HOUSE, JANUARY 12, 1949 Highway Fund $4,000 each year $13,000 each year $25,000 each year term highway program whether costs are met from current reve- nues or from the proceeds of bond issues. Two major decisions are expected of this Legislature with respect to highways-one of financing, a sec- ond of planning. Expiration on September 1, 1950 of the present 2 cent increased gasoline tax poses one major phase of the over-all financing program. This budget presents the financial outlook for a two-year period based on existing law. It also shows on Page 20 the State monies required to match present Federal alloca- tions if the additional 2 cent gaso- line tax expires September 1, 1950, and indicates that if this tax is continued, by your action, to June 30, 1952, sufficient funds are esti- mated to be available to match all current Federal allocations to Maine. There will be presented at a later date the long range program com- piled by the Highway Commission with optional means of financing- pay-as-you-go or by the issuance of bonds. Three major bridge construction requests undoubtedly will face this Legislature. One is a span at Cari- bou which would eliminate several grade crossings; another linking Bangor and Brewer; and a third would cross Fore River in Portland. These are essential, and at Port- land, in lieu of new construction, is a War Department order that the draw span be widened. Our man- datory compliance means an ex- penditure of over $1,000,000 and promises no solution to the justi- fiable demand for adequate and safe rail and highway approaches into Maine at this point. The question of financing such major improvements presents a still further problem. It obviously seems unfair to restrict the general high- way program by using current reve- nues for these major bridge ex- penditures which, in the aggregate might consume nearly all of the combined bridge and highway con- struction funds for an entire year. procedure. lows: State Port Authority Development fits for all Maine, State Park Commission coastal section. Such a bridge will provide the Penobscot Tribe of Indians proper facilities for transportation to Mil- ford and Old Town and permit the Tribe to be visited by our people and our visitors in a proper and safe manner. Baxter State Park Maine has in Baxter State Park a resource that should be devel- oped as soon as possible to enable more and more people to take ad- vantage of this great area made possible by the outstanding gener- LEGISLATIVE RECORD-HOUSE, JANUARY 12, 1949 General Fund Surplus As a result of savings and re- ceipt of income greater than esti- mated revenues there is a balance of $6,145,930 in unappropriated sur- plus. Accepted business principles dictate that this fund be appro- priated only for non-recurring capi- tal improvements. We must safe- guard this fund against depletion. We should first set aside $2,000,000 earmarked for working capital of the Treasury Department to pre- clude the necessity for temporary borrowing. This would be a sound It is suggested for your earnest consideration further appropriations of a non-recurring nature as fol- This will permit additional facili- ties to be provided that can more adequately serve the needs in de- veloping our State port facilities. This will result in added employ- ment and resultant economic bene- Such sum will permit proper de- velopment of our already existing State park facilities. It will make possible much needed trailer park areas and better provide for our recreational needs. It also will per- mit us to initiate the development of Reid Park which has been made available for public use through the generosity of Hon. Walter Reid. This will provide a beautiful area on our Bridge connecting Indian Island with Milford $400,000 $325,000 $140,000 $25,000 osity of former Governor Percival P. Baxter. An apparent need exists for capi- tal improvements at our State in- stitutions. Study should be direct- ed to determine the most pressing of these needs and financing should be made from unappropriated sur- plus SO long as such expenditures are not recurring. It is impossible to include in a budget message mention of every new expenditure request. You, as Members of the 94th Legislature, will have to weigh each request, measure its relative merit, and ap- prove those desired. One of the first expenditure prob- lems will have to do with salaries of State Employes. The budget as presented allows continuation of the $7.20 cost-of-living increase soon to expire, as well as provision for merit increases. It does not provide for the more recent ad- justment nor for demands that will undoubtedly be made for revision of the basic salary scale. It is es- timated the extension of the re- cent cost-of-living increase will require approximately $275,000 per year. Education requests will be sub- stantial and well supported. In- creased teacher salary subsidies and an adequately financed equal- ization program will cost $3,000,- 000 a year; participation by the State in a school construction pro- gram will cost $1,000,000 per year. An outstanding service has been carried out by our State University in providing for an accelerated pro- gram in the interests of our Veter- ans desiring college training. Be- cause of mounting enrollments re- sulting in increased costs all along the line, the University of Maine should be provided $300,000 per year in addition to the presently established 1 mill tax. Liberalization of our Welfare Statutes, as set forth in my In- augural, will require serious consid- eration. Provision in the budget allows an upward modification in maximum old age assistance and aid to the blind payments. If fur- ther liberalization of the over-all Expenditure Requests 63 64 Welfare Program is found desirable, substantial additional funds will be necessary. More adequate compensation for services rendered indigent persons by our public and private hospitals appears mandatory. This increased need will require $500,000 annually. Municipal financial problems are to a large degree in your hands. There is much to be said for argu- ments which support the conten- tion that Maine no longer should depend upon local property taxa- tion as a source of State income. If Maine is to relieve the hard pressed municipalities from the financial burden of the State prop- erty tax, we must raise $5,500,000 per year. Your attention is again called to the so-called cigar tax of 20% which deserves your consideration as to repeal. Such action will call for $660,000 per year of new reve- nue. Each of these requests, if they have your acceptance, must be fi- nanced by revenue sources which do not now exist. It is the purpose of the State wide tax conference, outlined in my Inaugural, to discuss these needs against a solution. On the score of need of new rev- enues and possible sources, I com- mend to you for deep study and consideration, observations made by the Legislative Research Committee on State taxes. I also recommend to you the Budget Document which has been placed on your desks this morning, particularly the summar- ies in the first section of the book. It contains much information which should be of value as you pursue your deliberations. A good index is provided. The budget office per- sonnel, in room 234, of this build- ing is ready to help any of you in any way they can. Your attention is directed to the report of the State Auditor and also the Audit Report of Ernst and Ernst, both of which contain much information that merits the earn- est consideration of this Legislature as it pertains to our legal frame- work. You may be sure that the administrative branch of your State LEGISLATIVE RECORD-HOUSE, JANUARY 12, 1949 Government will give proper atten- tion to those matters which may result in a more efficient and econ- omical administration of our ac- tivities. Senator Savage and Representa- tives Brown and Muskie have my deep appreciation for their con- scientious and praiseworthy work on the Budget Committee. We are fortunate indeed to have as Com- missioner of Finance and Budget Officer, Mr. Raymond C. Mudge. His grasp of the financial opera- tion is outstanding and it is my prediction that much progress will be made as a result of the founda- tion he has laid in our fiscal oper- tions. His courteous and efficient staff likewise have my sincere thanks. At the close of the Governor’s address, the Governor and suite withdrew. The purpose for which the Con- vention was assembled having been accomplished, the Chairman declar- ed the same dissolved, and the Senate retired to its Chamber amid the applause of the House, the Members rising. The House was called to order by the Speaker. The SPEAKER: The Chair recog- nizes the gentleman from Cape Elizabeth, Mr. Chase. Mr. CHASE: I present an Order and move its passage. After the Order has been read, I should like to make such procedural motions as will table the Order and assign it for consideration tomorrow morning and have it printed. The SPEAKER: The gentleman from Cape Elizabeth, Mr. Chase, presents an Order. The Clerk will read the Order. ORDERED, the Senate concur- ring, that a joint select committee be created, to consist of 7 members on the part of the House with such as the Senate may join, to consider forthwith the need for revision of the Constitution of the State of Maine either with respect to need Acknowledgments In the House Orders