FACT CHECK: Gov. LePage's State of the State

STATEMENT: “With a median household income of just under $48,000, Maine families survive on far less money than those in other states.“

FACT: While it’s true that the media household income for Maine families is just under $48,000, Governor Paul LePage is cherry picking facts. According to the US Census, Maine is ranked 32nd in house hold income. So 18 states “survive” on less. In addition Maine’s house hold income is 91% of United State’s average. There is no doubt we need to work to put more money in the pockets of working and middle class Mainers but we need to be realistic and honest about where we stand.

STATEMENT: “We provided Mainers the LARGEST TAX CUTS in history in a bipartisan effort. Despite rhetoric to the contrary: 70,000 working Maine families no longer pay state income tax. Two thirds of all taxpayers are receiving tax relief, easing the burden on middle class Maine families. The average Mainer family is receiving a $300 tax decrease. A 28% reduction in their state income tax.”

FACT: Almost 43% of the income tax benefits go to the top 10% of income earners. The average income tax reduction for 200,000 households earning less than $20,400 in 2013 is $17. For the top 1% or 6,700 households, the average reduction is $2,810. Many of the households earning less than $20,400 will see their property taxes increase as a result of the tax plan, some by as much as $400. (Maine Revenue Service) In addition, for the average Maine family of 4 to see a $300 tax decrease, this assumes the average Maine family has a modified adjusted gross income of $65,000 when in actuality the average Maine family is a little over 2 people and the household income is $48,000. (US Census)

STATEMENT: “Together, we eliminated $1.7 billion, 41% of the existing shortfall in Maine’s pension system, without cutting retiree benefits”

FACT: Retired state workers and teachers lost buying power for 3 years when their COLAs were frozen, while Social Security retirees at least kept pace with inflation. Permanent changes to these retirees’ benefits decreases their pensions for the rest of their lives. (Maine 2012-2013 Biennial Budget). According to Commissioner of DAFS, Sawin Millet, these cuts to our retirees was to fund tax breaks: “The pension savings in this budget allows for taxes to be cut by $203million over the biennium,” (Source: Kennebec Journal)

STATEMENT: “Unemployment is down in Maine, lower than the national average.”

FACT: This is true but to only look at the unemployment rate only tells half the story. According to the Maine Department of Labor, we’ve lost 4200 jobs since Jan 2011. (Source: Maine DOL)

STATEMENT: “Maine’s energy costs are TOO HIGH – and it’s killing economic opportunity.”

FACT: We have the lowest energy costs for businesses in New England. (Source: Department of Energy)

STATEMENT: “Even more discouraging is a law that forced the recent decision by the Public Utilities Commission in favor of Statoil’s off shore wind proposal. The move compels Maine files and businesses to subsidize a global entity to the tune of nearly $200 million dollars.”

FACT: Statoil‘s off shore wind proposal is a $120 million investment in Maine that will create hundreds of jobs, and put Maine at the forefront of a potentially transformative industry. Maine businesses support this project, including Cianbro and Maine State Chamber of Commerce. Statoil has reaffirmed its commitment to Maine, and strengthened its proposal to develop a first-of-its-kind, floating wind energy pilot project.(Source: Portland Press Herald)

STATEMENT: “When I became Maine’s Governor, hundreds of millions of dollars in unpaid bills to Maine’s hospitals were stacked on my desk. My predecessor left no plan to pay them, just IOU’s.”

FACT: Paying our bills is a priority—including paying the hospitals. That’s why Democrats led the change to prevent debt accrual. Maine has already paid back more than $3.7 billion to hospitals over the past decade. In fact, from fiscal year 2005-2010, the combined state and federal settlement payments to hospitals totaled $742 million. Under the LePage Administration, in fiscal year 2011-2013, hospitals will recoup $274.9 million in state and federal government dollars. (Source: Office of Fiscal and Program Review)

STATEMENT: “With the Affordable Care Act, Mainers will face huge tax increases, and regulations that will have a negative impact Maine’s own healthcare reforms”

FACT: The ACA will actually lower the cost of health care and put more money in the pockets of Mainers. In fact, Maine insurance companies were required to pay $2.6 million in premium rebates that will benefit 10,589 Maine consumers just last year. (Source: Bangor Daily News) In addition, in 2010, 12,887 people with Medicare in Maine who hit the prescription drug donut hole received a $250 rebate. In 2011, people with Medicare who hit the donut hole began receiving a 50 percent discount on covered brand-name drugs and a discount on generic drugs. Since the law was enacted, Maine residents with Medicare have saved a total of $13,952,095 on their prescription drugs. In the first nine months of 2012, 7,327 people with Medicare received a 50 percent discount on their covered brand-name prescription drugs when they hit the donut hole. This discount has resulted in an average savings of $535 per person, and a total savings of $3,921,752 in Maine in 2012. By 2020, the law will close the donut hole. Health plans are now required to allow parents to keep their children under age 26 without job-based coverage on their family coverage, and, thanks to this provision, 3.1 million young people have gained coverage nationwide. As of December 2011, 9,000 young adults in Maine gained insurance coverage as a result of the health care law. (Source:http://www.healthcare.gov/news/factsheets/2012/06/young-adults06192012a.html)

STATEMENT: “I speak passionately because education is what saved my life and I cannot accept any child not being given the same opportunity I had. As a homeless child on the streets of Lewiston, it never occurred to me that one day I could be a successful businessman, a mayor or even Governor. Finding my next meal and a warm spot to sleep was my goal. However, through all that hardship I knew that education was the key for me, if I was ever going to climb out of poverty, escape a life in prison, or life on the streets.”

FACT: Education is a key to allowing Mainers to climb out of poverty but once again, LePage’s rhetoric doesn’t match up with his policies. According to the 2012 Maine Kids Counts profile, measures of childhood poverty have gone up under the governor. The only decline in childhood policy measurements has been the number of children who receive help through TANF. The facts shows that Governor LePage has actually made it harder for those families and those children to climb out of the poverty he experienced and into the middle class. (Source:http://datacenter.kidscount.org/data/bystate/stateprofile.aspx?state=ME&group=Featured&loc=21#1564)

STATEMENT: “Education is what brought Abraham Lincoln from splitting rails to leading our country through its greatest crisis”

FACT: Abraham Lincoln was a self-taught Illinois lawyer and legislator. (Source:http://www.history.com/topics/abraham-lincoln)

STATEMENT: “School choice benefits each and ever Maine student who deserves the best education this state can provide.”

FACT: In 2009, its large-scale study showed that only 17 percent of charter schools provided a better education than traditional schools, and 37 percent actually offered children a worse education.