Candidates Agree on School Consolidation Law’s Failings, But Differ on New Beverage Tax, Dirigo Health

By Will Tuell

Downeast Coastal Press, 10/21/2008

The nine Washington County legislative hopefuls seeking office this November gathered for a candidates night at the University of Maine at Machias (UMM) October 16, the only forum to which all candidates were invited. Those attending included Rep. Howard McFadden (R-Dennysville, District 30) and his challenger Dennis Mahar (D-Pembroke); District 32 candidates David Burns (R-Whiting) and Katherine Cassidy (D-Machias); District 33 candidates Marie Emerson (D-Addison) and Dianne Tilton (R-Harrington); and state Senator Kevin Raye (R-Perry) and his two challengers, Karen Johnson (D-Machias) and Dana Kadey (I-Princeton).

The candidates addressed a wide range of issues including school consolidation, the beer, wine and soda tax referendum, and the state of affairs at Down East Community Hospital (DECH) in Machias.

Candidates Repudiate School Consolidation Law

On the issue of school consolidation, the sentiment was unanimously bipartisan—all office seekers came out strongly against the law, advanced by Governor John Baldacci in 2007. Since the original bill was enacted and implementation gotten under way, local sentiment has been building against consolidation, as school planners and community members struggle with concerns about loss of local control and the sharing of political power and costs.

“I believe that we need to look at this school consolidation deal when we go down to Augusta,” said Burns, noting that organizers of a repeal effort feel have gathered enough signatures to put the issue before legislators, and ultimately voter. “[The new law is] not going to work. It's pretty obvious for rural counties. It may work well for Portland and Lewiston—large areas and large districts—but it's obviously not going to work here. We've heard over and over again from the experts that it's going to cost more, cause a lot of confusion, and it's going to result in schools being closed down. I think that's the ultimate goal.”

Katherine Cassidy, Burns' opponent, agreed, saying, “The consolidation law was intended to find efficiencies and bring down the state budget. It just doesn't work and is not right for Washington County We could introduce and legislate charter schools. Maine is one of 11 states nationwide that does not have any room in the state for charter schools. There are 4,100 charter schools across the country—that's something that might work in our very small communities which are losing enrollment and desperately need a solution to stay alive.”

Emerson used her time to urge voters in Western Washington County to turn aside their school consolidation plan and go back to the drawing board. “This law doesn't fit for us,” she said after saying that the original purpose was to curtail wasteful spending in school administrations statewide. “We're having a vote that's coming up on the RSU [regional school unit] in my district. I would say vote it down. You're not going to get punished. You're not going to lose any money. It'll buy you some time, and you can look at alternates. And it will keep your local control for a while. ... Who knows best, who’s in contact everyday with the school but the local school boards? They know where the waste is. They know where the money needs to go. I think local control is very, very important.”

Tilton saidd that the biggest problems with the law are that state officials “ignored Management 101.” “You can't institute change in an organization without buy-in from the rank and file. And that was the first mistake that was made with the reorganization law. If there was a way to scrap it or repeal it or whatever, it needs to be done. I'm of the opinion that people who are working in school districts now have a lot of ideas and have what it takes to find the savings in a way that makes sense in that local area.”

Raye reminded voters of his early opposition to the law and his work to get it changed. “I'm proud to say that I was one of the seven [who voted against the law],” he said. “I've opposed it from the outset. I've been a leading voice in the Senate to repeal it after we tried to repair it. This law is not working by any objective measure. It is a failure. It is part of the governor's strategy to impose upon a rural state an urban model for education. It's part of an agenda to close rural schools, and I will continue to fight it with every last breath.”

Johnson said that the law has a lot of flaws, but that she would take a closer look at the problems in education that led to the law first and foremost. “Obviously there is a lot of improvement needed here at all levels,” she said. “I think what we need to do at the state level is look at the problems as you would do in your family, see what the problems are and come up with solutions that address the problems. To directly address school consolidation, even though we have to deal with that now, it's just looking at a problem that came from a problem.”

Kadey voiced his opposition to the law, and argued that the state should get out of education. “I'm opposed to the consolidation law. I think that the state should get out of education. Education should be left up to the lcoal towns. Let them take care of education. We send a dollar to Augusta for education. It comes back to us minus shipping and handling.”

McFadden, one of three members of the Education Committee to oppose consolidation from the onset, made no secret of his feelings concerning the issue. “The only thing I can say is, repeal, repeal, repeal!” he said. McFadden added that the Essential Programs and Services (EPS) funding formula also needs major overhaul. “It doesn't fit Washington County. It doesn't fit Aroostook County, doesn't fit Hancock County. The only thing it fits is the urban places—Portland, Bangor, Lewiston. It's a reverse Robin Hood. They're stealing from the poor and giving to the rich. We just need to repeal this [school consolidation], go back to the grassroots  and start from the bottom up, and have some local input.”

Mahar said that beyond repeal, which he supports, legislators need to look at education funding. “It appears that this panel is pretty unanimous that the law needs to be repealed and we need to start over,” he said. “Is there room for some consolidation and cost saving in education? Absolutely. There is in every area of state government, and we need to look at that carefully. The EPS formula needs to also be revisited so that it is not punitive to local schools.”

Beer, Wine, Soda Tax Referendum Debated

A referendum calling for the repeal of new beer, wine and soda taxes also figured heavily in the candidates forum. The ensuing discussion quickly turned into a referendum on Maine's controversial Dirigo Health program, which proponents see as a solution to helping “fill the gaps” in the health care system and critics see as another costly state program.

Emerson favors the tax and opposes the repeal effort, seeing the tax as an appropriate way to police people's behavioral choices, an objective she supports. “Soda is a bad food. It's just empty calories,” she said. “It's no good for you. It makes people obese. It makes people have diabetes. It's ruined dairy farming. Soda is not good for people. It's made our health care to go way up in expense. So, what better way to fix and pay for some of the expense? You pay gasoline tax to fix the roads. Why not charge these multinational companies that are paying all kinds of money to have this thing repeal. Why not have them pay for some of the damage they have caused.”

Emerson, while expressing reservations about the way the Dirigo Health law was originally passed in Legislature, said she supports the state’s health insurance initiative. “Do I agree with the the way it was passed? No. There wasn't transparency; there wasn't discussion. But I do believe that Dirigo helps people from MaineCare to real insurance. I think it's a good step that way and I think it [Dirigo] is a good thing, and that this [new tax on beer, wine and soda] is a fine way to pay for it.”

Tilton said that the government shouldn't be in the business of regulating people's behavior through tax policy. “I think that if we've learned anything over the years, it's that you really can't regulate people's behavior by taxing it. I'm going to vote to repeal the law. It's not just because it adds to the tax burden of the consumers, but also because it taxes health benefits. What that will do is increase the cost of health care premiums making them more unaffordable, forcing more people into state programs like Dirigo. I don't understand the rationale of that and I support repealing the law.”

Raye said that he had voted against the law originally, and remained firmly opposed. “Dianne put her finger on it. The supporters of these taxes like to talk about beverages and soda as not good for you. But it is extremely objectionable to me the way this tax was imposed, in the dark of night without a hearing. It is objectionable to me that it includes a 1.8 percent tax on all of your health insurance claims. That is outrageous to increase the cost of health insurance for everybody else, to support a program which I believe was a noble experiment, but by any objective measure has failed to meet its objectives.”

Raye said that Dirigo which was supposed to have enrolled 128,000 Mainers by 2009, but that the program has not even come close to that mark, with little over 12,000 enrollees and a price tag of $100 million since 2005.

Johnson advocated for a universal health care system in her response time, arguing that we need to “send some people to Augusta” that would “address problems and actually get them solved instead of creating more problems. Health care in this country is a disaster,” she said. “We are one of two industrialized countries in the world that does not have universal health care, and the other one has a per capita income of less than $2,000 a year. We are horribly behind the times in health care. Dirigo has worked to fill the gap. It has worked; it has insured people; it has done good for our children. And Dirigo 2 will be even better because they've got cost containment and stuff built into it that's going to make some improvements. As far as funding this, it looks to me we're in another darn mess. Until the feds come through with a national health care plan,” Dirigo is an important stopgap measure.

Kadey said that he is in favor of repealing the neew tax, and that Dirigo “should be removed from life support, given a proper memorial service, and then buried.”

“I'm also for repeal, no question about it,” said McFadden. “I just want to remind everyone when the 123rd [Legislature] started, the Governor made the statement that there would be no new taxes and no increases in taxes. Well, this is a new tax. You remember two years ago they put a $1 a pack tax on cigarettes? That was for Dirigo Health. My question is what happened to that dollar a pack on cigarettes? What are they using that for? That went into a dark hole and we probably won't see it any more.”

Mahar remained uncommitted on how he would vote. “I'm not sure whether I'm in favor of repealing the tax as it stands right now or not,” he said. “It sort of depends on what replaces it. Repealing the law as it stands does not do anything to Dirigo Health, nothing whatsoever. It just changes what the funding is. If this law goes, the funding goes back to what it is now. Changing it doesn't make Dirigo go away. If it goes away, we need to have something to replace for those people who are on Dirigo. The second largest private employer in District 30 uses Dirigo to provide a health care policy for its employees. To take that away means that that employer's employees aren't going to have health care anymore unless they're able to purchase it on the individual market, where prices are really huge.”

Burns said that he would vote to repeal the tax, arguing that Dirigo has cost the state far more than it was ever expected. “I'd vote to repeal it,” he said. “The University of Maine did an independent study recently about this tax. And their figures indicated that it would cost an extra $40.7 million in higher taxes. It's going to reduce sales by $26.3 million, cost us 395 jobs, or $8.8 million in lost wages. Two wrongs don't make a right. Dirigo has been a failure. I think everybody knows that it's dying. Adding another sin tax on to try and bail it out isn't going to solve the problem.”

Cassidy defended the tax, arguing that its impact is inconsequential, and that Dirigo is worth saving. “The tax that we're talking about amounts to about 3 cents on a can of soda, 7 cents on a bottle of wine. I'll pay that so we can have an alternative funding source for Dirigo. It's been a lifeline for many families across Maine—12,000 individuals and 700 small businesses. Our problems in Washington County aren't the same as southern Maine. Our county is built on seasonal labor. One of our problems are that some of our largest employers don't pay a decent hourly wage, they don't have benefits. How do those employers sleep at night? Dirigo allows Washington County families health insurance. It's affordable for our people and it works on a sliding scale.”

Candidates Urge Transparency at DECH, Improved Communication

When asked for their thoughts on the recent controversy at the Down East Community Hospital in Machias, candidates were generally unanimous in urging the hospital to be more transparent and open to the public.

“I think the issues that are confronting [DECH] are of enormous concern to everybody who lives in Washington County. And I think it's basically because there's a question of public confidence in the process,” said Raye. “I've encouraged the board and the administration to institute transparency [measures]. Be communicative. Reach out to the community. Explain, from their perspective, what is going on at the hospital. I also have encouraged the hospital to reach out to those who have led the public concern in the community. Bring them in. Include one or two of the hospital's critics on the board, in a demonstration that the hospital has nothing to fear and can be transparent. It's a vital institution. We can't afford to have this situation go on.”

Johnson declined an opportunity to comment, donating her response time to Katherine Cassidy, one of a group of six Machias-area women who originally organized a group critical of the hospital. Kadey also demurred, saying that the concerns over DECH are “a local issue” and that he lives in Princeton, and consequently doesn't have an opinion on the hospital.

“Since Machias is not in my district, I'm kind of reluctant to say anything one way or the other,” said McFadden, adding that he's heard the hospital's side, but isn't well enough acquainted with the other side to form an educated opinion. “Sometimes the writers in the paper write in good faith, but sometimes we don't read in good faith. So I'll just pass on making any comment at this point. I just hope and pray that it gets worked out because it is a nice hospital. It's one of the best in Maine, I think.”

“DECH and CRH are both integral parts of the well being of Washington County,” said Mahar. “We need to make sure that the public, which is effectively the owner of these institutions, has some knowledge of what's going on. Transparency is the key. I have served twenty years on the board of CRH, and was chair for 10 years. If there was an issue with the public that came up while I was chair, I insisted that we make sure that we have public meetings and gave public information to increase the transparency and understanding of the public. Some of the issues they have are personnel issues and they would not be allowed to discuss those in public without the consent of the people involved. Transparency is what they need to do, and I will continue to encourage the members of the board and administration of DECH to try and reach out to the general public, and to the people who are leading the public charge against the hospital's apparent secrecy.”

“I made a very concerted decision not to make it a political issue because I'm running for political office in the same area this hospital serves,” said Burns. “I did, however, choose to go learn more about the issues, so I met with a lot of people behind the scenes on both sides of the issue. I have friends on both sides of the issue. It's not a simple issue. Transparency is one of the biggest keys. Communication is the other. … I don't think this problem can be solved by one side. It has to be solved by both sides sitting down talking. It's too critical an issue to either make it a political one or to ignore it. If we ignore it it's going to get worse. If we continue to beat it in the paper, it's going to get worse.”

“I agree with David that this is not a legislative issue,” said Cassidy. “The reason this is important to all of us is because Washington County's reputation depends upon it. People think Machias, they think DECH. All the battering in the papers has not been good for the image of Machias, the hospital, or Washington County. If we want Washington County to be a place where older people retire to, they want a place where they know they can depend on the local health care.

“I came to Washington County in 2003 as a reporter for the Bangor Daily News. Several times in those first two years, Wayne Dodwell, the CEO met with the media regularly. He doesn't do that any more, and maybe that's when some of the problems started happening behind closed doors. Others here have mentioned transparency, and that is a key to making changes. From my perspective, I see that the hospital has a tremendous public relations problem. This is something that if they work very hard about public relations, doing the right thing and being responsive to community needs and questions, it can be turned around in about two years.”

“I think this issue is sort of like the consolidation issue,” said Emerson. “What we have here is a national firm, a national management company, that's running a local hospital. They're using a template with the rules and regulations that apply in hospitals around the country in much larger areas than DECH. It doesn't work. It's having its problems. I think with openness, honesty, and transparency these things can be worked out.”

“I just want to acknowledge that it is very frustrating when people in a community are concerned about an institution that has as much importance as DECH, said Tilton, “and to not have any natural access into that process. It's not like with your legislators. You can vote them out of office. It's not like a state agency where you can call your legislator and complain. There is a role for the public in government institutions. In private institutions like this, you really have to rely on the willingness of the institution to welcome and reach out to the public. When that doesn't happen the way people want it to, it can be very frustrating, and can inflame an already bad situation.”

The forum was hosted by UMM professor Jon Reisman and his American Government students as part of the public university's outreach services.