By Dave Choate

Fighting “brain drain” in Maine can be a pain. With a new law in place to give tax credits to college students who stay in the state to live and work after graduation, Gov. John Baldacci and Maine officials are hopeful they can give the best and brightest some incentive to stick around.

The new law was originally conceived by Opportunity Maine, a citizens’ initiative made up of student and community leaders around the state. They brought the tax credit proposal to the state Legislature, where it garnered enough support to pass and end up in the hands of Baldacci.

Department of Education higher education specialist Harry Osgood said students who receive associate’s or baccalaureate degrees from a Maine college will be eligible starting Jan. 1. The tax credits will be based on time spent in college, so incoming freshmen in 2008 will have their entire load of educational loans credited under the plan.

Osgood said businesses will be able to assume the cost of an employee’s loans to get the credit, which will directly reduce the amount of income tax paid.

Out-of-state students who sign a contract saying they would like to stay in Maine after receiving education at a Maine school will also be eligible for the plan.

“The goal here is to make it possible for those who really want to stay in Maine to stay in Maine. We traditionally have had an economy tied to woodlands, open sea and manufacturing, but one of the goals is to overcome those traditions and transform our economy,” Osgood said.

He noted that Maine ranks last of the six New England states in terms of college attainment. A more educated work force will help not only Maine companies, but also the Maine college system, he said.

Maine Department of Labor Commissioner Laura Fortman said the tax credits will help make colleges in the state affordable.

Fortman also rejected the idea that Maine is suffering from “brain drain,” or an exodus of students and workers. She cited a 1998 Finance Authority of Maine study that found more than two-thirds of college graduates stayed in Maine or returned a few years later.

“The mythology that’s out there is that people are leaving Maine, but when we started looking at the data, we discovered it generally doesn’t support that. This is just another step in focusing on making sure everyone in Maine has an opportunity to pursue higher education,” Fortman said.

The bill was signed into law Oct. 1. Gov. Baldacci said he hopes that Opportunity Maine’s newest chance will be one embraced by those it will affect.

Reaction to the law and staying in Maine was mixed among students interviewed at Traip Academy in Kittery.

“I still wouldn’t want to stay here long term,” freshman Carley O’Brien said. “I plan on going into the Peace Corps after school.”

Freshman Caroline Kuliga said she plans to stay in Maine and is thrilled the law might make things easier.

“I love Maine and it would be great if I had less taxes to worry about,” she said.

For junior Chris Tobey, lobstering is in his future and is proof the old industries have not faded out in Maine.

“(The tax credits are) interesting, but I’m not thinking about it because I have a career in lobstering. Maybe if my industry failed I’d go to college,” he said.