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FOR IMMEDIATE RELEASE:

1/24/12

FACT CHECK: Governor Paul LePage's State of the State Address

AUGUSTA, ME - Governor LePage doubled down on his unpopular agenda in his State of the State address Tuesday night. From dismantling public education to eliminating health insurance for 65,000 Mainers, the Governor showed no signs of adopting a realistic approach to fixing Maine's problems. The Republicans in the Legislature applauded furiously to LePage's speech, but it remains to be seen if they are ready to follow him over a cliff.

LePage also continued a trend of touting misleading facts and cherry picking information.

MDP Chair Ben Grant released this statement:

"Democrats are ready to work on a balanced approach to tackling Maine's problems. Does the GOP want a partner in that project, or are they just going to meekly knuckle under to LePage's threats? People like Sen. Farnham and Sen. Martin went to great lengths last year to criticize the Governor. Now it's time to see if they really meant it, or if that was all just for show when nothing important was at stake."

FACT CHECK:

LEPAGE SAYS: "Two thirds of Maine's hardworking taxpayers will receive tax relief next year. Maine families will have more money for heating oil, for groceries, and gas for their vehicles."

TRUTH: 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. (Mane Revenue Service)

LEPAGE SAYS: "Unemployment is also down, and lower than the national average."

TRUTH: Unemployment is down but according to current employment statistics released today by the Bureau of Labor Statistics, Maine has lost 7,200 jobs from January 2011 to December 2011. (SOURCE: http://www.maine.gov/labor/cwri/ces.html.)

LEPAGE SAYS: "Today we confront the $221 million dollar budget shortfall within the Department of health and Human Services that is fueled by overly generous welfare programs that we cannot afford."

TRUTH: According to the Department of Health and Human Services' analysis, the total cost of increased enrollment in MaineCare accounts for $6.5 million of the shortfall in 2012 and a projected $7.9 million of the claimed shortfall in 2013. Enrollment growth accounts for only 6.5 percent of the total projected $220 million shortfall. According to DHHS, the biggest driver in the 2012 shortfall - $29.9 million - is the result of a new claims system that caused benefit payments that should have been settled last year to be paid this year. The shortfall has been caused by his administration's miscalculations in building the budget, a transition from claims processing from one computer system to another and a change in how we make payments to providers. These are problems related to program administration, not program growth. (Source: http://www.maine.gov/dhhs/budget/MaineCare-Shortfall-Analysis.pdf)

LEPAGE SAYS: "Over the last decade, Maine's welfare program has grown by over a billion dollars."

TRUTH: The total funding for the MaineCare program has been largely flat since 2006. Expenditures for the MaineCare program totaled $2.24 billion in 2006 compared to $2.44 billion in 2011. (Source: https://gateway.maine.gov/dhhs-apps/dashboard/) This is an increase of only 8.9 percent in expenditures over a five year period when medical care inflation has grown at a rate of 19.9 percent during the same time period.

LEPAGE SAYS: "We saved pensions."

TRUTH: Governor LePage gutted pensions for thousands of teachers and state workers. He capped pension income that earns a COLA at $20,000 and pay for retired Mainers living on a fixed income for the next 4 years while at the same time he cut the State Employee Health Insurance Commission by over $13 million causing retirees to pay more for prescription drugs and hospital visits. (2012-2013 Biennial Budget)