By Kristi Ceccarossi

The state of Vermont, which is losing its young people at an alarming rate, wants them back.

So on Wednesday, a crew of state employees and headhunters boarded a bus in Montpelier headed for The Living Room, a swanky bar in Boston’s North End. There, they hosted a party for 75 young professionals who live and work in Boston, all of them alumni of Green Mountain colleges and universities.

Vermont is not alone. In recent years, Maine, Rhode Island, and Connecticut have made efforts to woo graduates to stay.

But all this effort prompts the question: Does it work?

We know more and more of our graduates have started to stay,” said Melissa Withers, spokeswoman for the Rhode Island Economic Development Corp., rattling off the names of Brown University alums who have taken advantage of tax credits to set up their businesses in Providence.

She says social networking events, like the monthly meeting of “Providence Geeks” for young tech employees, regularly bring together 200 people or more. And her job, which includes work at “The Innovation Factory,” a center that works with Providence colleges, has recently gotten a lot busier.

“But that’s all anecdotal,” Withers said. “The best we’ve learned so far is that you can’t over-engineer this sort of thing. You have to let some of it happen naturally.”

Rhode Island plans to look at statistical data behind its effort, Withers said, but only after a few years of working on the issue.

So far, that’s about the best any state can offer.

The $33,000 networking event is the latest strategy by Vermont’s Department of Economic Development to woo college-educated twenty-somethings. Since 1990, the number of 20- to 34-year-olds in Vermont has shrunk 19 percent, according to US Census data. To stanch the outflow, the state has allocated roughly $5 million in the last seven years for events like the North End gathering.

This summer, Maine passed a landmark bill to address the loss of its young people. It has a particularly urgent cause: Maine’s workforce, according to a 2006 study by the Brookings Institute called “Charting Maine’s Future,” is aging rapidly. The state has the highest median age in the country, 41.2 years. In the next 20 years, that could spell trouble for the economy.

“Opportunity Maine” is meant to stave off the potential slump. The law will give any resident who attends a state college a tax credit equal to what they paid on their student loans in a given year if they continue to work in the state.

The proof of that plan’s success will be how many students sign up for it, said Tony Giampetruzzi, communications director for the program.

“We suffer a lot from the flight of our young population,” he said. “But there’s not going be one magic spell to fix the problem.”

Four years ago in New Hampshire, Fidelity Investments, which employs 5,500 people in Merrimack, came to higher education leaders with a complaint: They couldn’t find enough qualified candidates to fill the company’s jobs.

“That was the ‘a-ha’ moment for us,” said Matthew Cookson of the University System of New Hampshire. “At the same time we were hearing from students that there weren’t enough jobs here for them when they graduated. We had to figure out where this became a perception versus reality issue.”

Now, Fidelity is recruiting directly from the state university system for entry-level positions that require at least a bachelor’s degree. Meanwhile, the state is working on a survey this year, asking college students what it would take to keep them around.

When that’s complete, the state will have some concrete ways to measure its improvements, Cookson said. Until then, he points to recent changes in Manchester, where an active group of young professionals has banded together to make the community its own and hopes to draw others in.

Kate Benway, 28, has been a leader in that undertaking. She works for the city’s economic development office, which is currently leading a public relations campaign to attract recent college grads to the area for work.

Benway is also a founder of the Manchester Young Professional Network. Four years ago there were 10 members. Now there are 2,000. She says the group is successful because it presents an honest picture of Manchester.

“You can’t promise something you don’t have,” she said. “So many young people have their heart set on being part of a big city. We aren’t going to be able to keep them. But there are some people who don’t necessarily want that, and they’re going to be open to us. We just need to show them they can get a great first job here, and a second and a third.”

In Montpelier this week, officials said they’re feeling a real sense of momentum around their work, and they’re using the turnout at The Living Room party as a yardstick of their progress.

An hour into the event, the cocktails were flowing and an impressive spread of hors d’oeuvres and business cards was being passed around to the persistent beat of a jazz trio.

And employers were happy because, for a change, they didn’t have to sell people on the state.

Kevin Dailey, human resource director for Mack Moulding, an Arlington, Vt., manufacturer, said the first thing he looks at on a resume is a person’s interests and hobbies.

“If I don’t see some kind of outdoor activity listed there, I know they won’t make it here,” he said. “We can offer a great job, but it’s only a great job for the right kind of person.”

Later, in a quiet corner of the bar, he chatted with Colleen Harty, a 24-year-old who works as a process engineer at Inte. She seemed well on her way to getting an interview with the company, but when she asked Dailey if there were any decent hiking trails near the firm’s headquarters, that clinched it.

“Are you kidding?” he said. “You can hike to your heart’s content.”

OpEd by Cliff Ginn and Justin Alfond

As the legacies of two of the best-known business leaders and philanthropists in the state, we both now live, work and play in Maine because of its people, its unique sensibility, and because our roots here run deep.

From an early age, we learned from our families that education is a pathway to future choices and success. Our family legacies are firmly planted on the foundation of giving to improve education and encourage students to excel in Maine. Educational philanthropy is one the highest expressions of our families’ values.

It’s a legacy of which we are proud, and a tradition that we have committed ourselves to continue. That’s why we are among the founders and leaders of Opportunity Maine, scheduled to hold a Bangor-area open house Oct. 11 at the Children’s Discovery Museum.

By now, most people in the state have heard about the Opportunity Maine success story. Almost two years ago, concerned community leaders and students came together to address what was becoming an epidemic in Maine and throughout the nation — the rising cost of tuition, the downsizing of loan assistance programs, and massive amounts of accumulated student debt. In Maine’s rapidly changing economy, those barriers deny economic opportunity to laid-off workers, mothers wishing to enter the workplace, and those who simply need training to compete in our traditional and emerging industries. At the same time, Opportunity Maine’s founders and many other Mainers recognize that an educated workforce is the No. 1 predictor of economic growth and high incomes.

The program’s founders believed that the best way to address these problems is to make the prospect of loan repayment less daunting. And we succeeded! After collecting 73,000 signatures and gaining the support of business, labor, educational and civic leaders throughout the state, we were ready to put the question before Maine voters. Instead, Maine lawmakers recognized that our bill couldn’t wait any longer. With a unanimous vote in the Maine House, a three-fourths vote in the Senate, and the Governor’s enthusiastic signature, Maine’s elected leaders committed themselves to a long-term investment in Maine’s people, workforce and economic future.

Now anyone who attends a Maine college (public or private) and lives and works in Maine after graduation is eligible to claim a large tax credit to help pay their student loans. What’s more, businesses who pay an employee’s loans can take the credit for themselves.

Opportunity Maine will help Mainers of all ages to earn college degrees, and will attract people from other states to attend our colleges and settle here afterward. As the proportion of degree holders in our work force increases, businesses will increasingly start up, grow and locate here. Meanwhile, Maine businesses can offer employees a substantial benefit, at no cost, that is unavailable from out-of-state competitors.

Far too often, good programs become law but then stagnate. That is not happening with Opportunity Maine. When it comes to giving back to Maine, one of the important things we have learned is that it’s not enough to pledge support; you must follow through. The work of Opportunity Maine is far from done.

In the coming weeks, Opportunity Maine and its supporters will engage people throughout the state about the importance of supporting our higher education program. From an event next week featuring a trifecta of Maine governors — Baldacci, King and McKernan — pledging their bi-partisan support for Opportunity Maine, to the Bangor open house featuring University of Maine System Chancellor Richard Pattenaude, we’re marketing Opportunity Maine to make sure that it succeeds. Chambers of Commerce, labor unions, educational organizations and others are all reaching out to their members to inform them about Opportunity Maine and to invest them in its success.

But it’s not just politicians and business leaders who recognize the importance of implementing this first-in-the-nation program effectively; a vast network of students is currently spending their days and nights talking to other students about Opportunity Maine and how the program will benefit them for years to come.

Just like our parents and our grandparents, we believe that Maine is the best place in the nation to work, raise a family and have fun. But we also know that Maine can be a challenging place to do so.

Opportunity Maine will make living in Maine easier by expanding educational opportunities, reducing debt for students and families, and building a skilled work force that reflects the unique aspects that Maine has to offer. As we begin to raise our families here in Maine, we look forward to encouraging our children to consider Maine their home. With the success of Opportunity Maine and other programs designed to make college more affordable and to grow the economy, we’re confident that Maine will become an even more appealing place to plant their roots.

Clifford Ginn is a lawyer and president of Opportunity Maine.

Justin Alfond is the state director of the League of Young Voters and treasurer of Opportunity Maine.

PORTLAND, Maine (AP) — A student-led group Tuesday announced a campaign to initiate legislation that would provide state income tax credits to offset student loans to graduates of Maine colleges or universities who stay and work in the state.

Opportunity Maine said it will soon begin to gather the roughly 50,500 voter signatures needed to place the question on the statewide referendum ballot in November 2007.

Backers of the initiative said it would help Mainers meet the rising costs of higher education and enhance the state’s economic prospects by enabling more graduates to work in their home state.

“I have spoken to so many other students who are struggling with the increasing cost of education and who have to look out of state for a job that can help them pay their student loans — even if they want to say and work in Maine,” said Andrew Bossie, president of the University of Southern Maine student body and president of Opportunity Maine.

The proposal was detailed at a news conference at Lewiston-Auburn College.

The amount eligible for tax credits would be capped at the cost of tuition and fees for the University of Maine System or the Maine Community College System. Thus, credits for graduates of Maine’s more expensive private colleges may cover only a portion of their loans.

Under the proposal, employers would have the option of paying the student loans of an employee and taking the tax credit for their business.

While programs elsewhere have been targeted at specific occupations such as teachers, nurses and doctors, campaign director Rob Brown said “no other state is doing anything nearly this universal.”

Nearly half of all college graduates in Maine leave the state after they get their degrees, Brown said, and one of the primary reasons is the inability to land a job that provides a high enough salary to pay off student loans.

Opportunity Maine made an informal presentation to the University of Maine System trustees last weekend, and the chancellor and trustees were interested, said John Diamond, university system spokesman.

A formal presentation will be made in November or January, at which time trustees will consider endorsing the proposal.

“The idea of expanding education and affordability is something that the board is wanting to do with its own agenda. That’s why they’d like to get more information about the specifics of the students’ proposal before they take a formal stand,” Diamond said.

The initiative, which has drawn support from labor unions and chambers of commerce, was rooted in discussions among student leaders that began last November, Brown said.

They decided to bypass the Legislature and launch a petition campaign in order to promote sustained public debate on the issue, he said. Because an educated work force is a key element in economic development, he suggested that the discussion could prompt businesses to look at Maine as a potential site to locate or expand their operations.

Other measures to provide financial help with student loans have gone before the Legislature but either died in committee or on the floor, or were passed but did not receive funding, he said.

Opportunity Maine has projected that its proposal would generate more than $80 million in increased tax revenue and spillover economic benefits by the 10th year. Annual costs to the state would run several million dollars during each of the first few years, but there would be a net gain as more people enter the work force, the group said.

The group projected that the legislation would enable an additional 25,500 Mainers to earn degrees over the 10 years, boosting their earnings by an average of at least 15 percent.

“By making education affordable to students and laid-off workers, Maine will entice the type of industry that is critical to a sustainable economy,” Bossie said.

Organizers planned to seek 1,200 volunteers, including students, parents and teachers, to gather signatures at polling places on Nov. 7.

On the Net: http://www.opportunitymaine.org

LEWISTON – Maine-educated college students who agree to stay in Maine after they graduate would get tax credits on their college loans under a proposal being pushed by a group of Maine students.

The group, Opportunity Maine, began a petition drive on Tuesday to gather the required 50,519 signatures from registered voters by Jan. 25 to put their proposal on the November 2007 ballot.

Proponents said the measure is designed to boost the number of college graduates in the state by easing the financial pain of getting a degree. They also hope to raise Maine’s average income, which lags those of other New England states, and reverse the so-called “brain drain” that results in 50 percent of the state’s college graduates leaving Maine for work.

“It’s not just about college but about jobs,” said Andrew Bossie, student body president at the University of Southern Maine and president of Opportunity Maine.

But some tax policy experts said that it is unclear whether the measure would bring about its intended goals, and that it could create an unfair playing field for new out-of-state college graduates who want to move to Maine.

Under the measure, any Maine resident who earned an associate’s or bachelor’s degree at a Maine college or university and signed an agreement with the state could get a tax credit for college loan payments for each year that person lives and works in Maine.

The tax credit would also be available to the person’s employer, should the employer pick up the employee’s college loans. The amount would be capped at the cost of tuition and mandatory fees for a bachelor’s degree in the University of Maine System. That works out to about a $2,100-a-year tax credit at present prices, Bossie said.

The average debt of students who graduate from Maine public universities is about $21,000, said Rob Brown, campaign director. Brown said the tax impact of the proposed measure is still being worked out by his group.

But, he said, an initial analysis shows the state could lose about $3.4 million in revenue because of the credits, which he said would be offset by additional income tax paid by residents who are added to the Maine’s tax rolls rather than some other state’s.

The measure is the brainchild of a bipartisan group of students and others who spent the past year meeting with students, educators, legislators and business people. Brown said it is unique to Maine, although other states have used similar measures to lure health care workers or other highly skilled workers to underserved areas.

Tax policy specialists gave the proposal mixed reviews. State Rep. Richard Woodbury, an independent from Yarmouth and chairman of the Legislature’s Taxation Committee, said he did not know whether the loss of tax revenue from the credits would be offset by taxes generated by the retention of more Maine-educated college graduates in the state. But he called the proposal intriguing.

“It is addressing two of the really big challenges we have identified Maine needs to work on: encouraging more of our high school graduates to go on to college, and keeping our highest-skilled young people in Maine,” Woodbury said.

He said he provided some advice to Opportunity Maine but is not affiliated with the group.

Rep. Harry Clough, R-Scarborough, said the issue is too complex to put before voters in a referendum. He said Opportunity Maine should have approached a member of the Taxation Committee to sponsor the bill.

“It deserves a full and fair hearing to find out the ramifications,” he said. “There are a lot of people involved in it and it deserves a complete hearing.”

Rep. Herbert Clark, the ranking Democrat on the Taxation Committee, gave the proposal a thumbs-up, even if it results in some lost tax revenue.

“It is a good idea, a creative idea. A tax credit would be a step in the right direction of many steps to help our kids stay here,” he said.

Charles Colgan, professor of public policy and management at the University of Southern Maine’s Muskie School of Public Service, said the proposal has positives and negatives.

He said a $2,100 tax credit would significantly lower the state income taxes paid by most recent college graduates in Maine. The measure could also entice more students to attend college in Maine.

But Colgan said the proposal could wind up benefiting people who were planning to stay in Maine after college graduation anyway. And he said it would do little to entice highly paid college graduates, such as those in engineering and computer science, who can fetch salaries as much as 50 percent more in some metropolitan areas outside of Maine.

Colgan also said the measure would be unfair to students who attend college outside of Maine but would like to live in Maine.

Students who spoke at Tuesday’s news conference said their lives would have been transformed by the measure. Leah Malave of Greenbush said she never considered college after high school, but when she found herself at age 30 as a single mother of two sons, she went to college out of economic necessity.

She now holds associate’s, bachelor’s and master’s degrees in criminal justice from the University of Maine System. But she said she is also $50,000 in debt and she wonders how she will ever pay off her loans.

“I have a son in high school and I won’t be able to financially help him” in college, she said.

Staff Writer Beth Quimby can be contacted at 791-6363 or at: bquimby@pressherald.com