More Anti-Job Growth Legislation from Augusta

As Maine’s economy continues to lag, Augusta should be encouraging job creation by permanently reducing the cost and complexity of doing business in Maine.  However, some in Augusta are again trying to make it even tougher. 

Under current law, workers who are laid off but receive compensation for accrued vacation time must wait until that time expires before receiving unemployment benefits.  The rule prevents people from “double dipping”, i.e. being paid for vacation and receiving unemployment benefits at the same time.

Last week, however, the House passed a bill that would permit workers to receive unemployment benefits before their accrued vacation time has been exhausted.  By allowing workers to “double dip”, employers will have to bear the higher cost of unemployment benefits, which are funded through unemployment insurance.  The result could be increased job loss and slower recovery of our private sector.

Maine already has one of the worst business climates in the country.  It has a punitive tax structure and a regulatory system that is incredibly complex and costly.  Last year, the legislature raised the sales tax and will soon attempt to make employer “sick pay” mandatory.  Now, Augusta is trying a backdoor increase in unemployment insurance.

All this adds up to an even worse business climate in Maine.  It sends the wrong message to employers who are already here and discourages potential investors from coming to Maine.  In short, it is a job killer.

Our next Governor must bring a new, positive attitude toward business formation and job growth to Augusta.  He or she must send a strong signal to the State House that this is the sort of legislation which dampens our prospects for prosperity and should be soundly rejected. 

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