Maine's Democratic political leaders are urging Congress to divert a portion of the federal funds assigned to bail out Wall Street financial institutions toward the creation of a national jobs bill. Supporters say the funds are desperately needed as Maine lawmakers prepare to trim $438 million dollars from the state budget -- a move that that one economist claims could result in the loss of as many as 10,000 jobs. But GOP lawmakers counter the country can't borrow its way back to prosperity.

From Washington, D.C. to the state capitol, leading Democrats are calling for more jobs in Maine to reduce the current rate of unemployment that continues to hover around 8 percent.

"Frankly we need to get a jobs bill to the president as soon as possible," says Maine 1st District Congresswoman Chellie Pingree. "Wall Street, the big banks, they got their bail out and they're doing just fine. It's high time that Congress started focusing on creating and saving the jobs for average Americans."

Pingree says she is supporting the Jobs for Main Street Act because it invests $48 billion in roads and bridges, school renovation, clean water and housing. She says that in addition to the infrastructure improvements, the legislation will provide $27 billion to hire and retain teachers, firefighters and police officers.

Pingree says the bill extends emergency unemployment benefits through next June and extends a 65 percent subsidy for COBRA coverage for laid-off workers, also through June of 2010. Her daughter, House Speaker Hannah Pingree, a North haven Democrat, agrees.

"We are calling on Congress to pass fiscal relief for the states," state Rep. Pingree says. "Again, a bill that has already passed in the House, it may become part of the jobs bill, it may pass as a separate measure. We know Sen. Collins has also introduced a separate bill around fiscal relief for the states, especially in the area of Medicaid funding and funding for our schools. We know the impact of our budget will be significant for the people of Maine."

"Maine is in the middle of a jobs crisis --we all know that, our consituents know that and we get it," says Maine Senate President Libby Mitchell. "And because we get it, here's the second item that's probably not news either -- we're doing all we can as state legislators to try to change that situation."

Mitchell, a Vassalboro Democrat who's also seeking her party's nomination for governor, says that since Wall Street had its bailout, it's time for Congress to help Main Street America by authorizing tax cuts for businesses that hire new employees.

Christopher St. John, executive director of the Maine Center for Economic Policy, says the federal funds are critical. He points to his own organization's analysis that predicts the state could lose as many as 10,000 jobs as the result of state budget cuts. He says the impact of those job losses could be mitigated by a federal jobs bill.

But state Rep. Jayne Crosby Giles disagrees. The Belfast Republican says what Main Street really needs is for Washington ease up on taxes and regulations. "You cannot borrow yourself back to prosperity," she says. "We have got to take more focus on listening to our business community to seeing what it is that is holding them back from creating the jobs that need to be created, from just good business, good healthy business practices. If it's too much regulation in the state, we ought to step back and streamline that, if it's regulation that's taking too long, then let's find a way to get things approved in 48 hours versus 90 days to a year."

"Today's critical issues, I believe, before business and industry are energy, the cost of energy and the cost of transportation and the types of transportation," Gov. John Baldacci said earlier in the day at the Augusta Civic Center, where he also focused on barriers to state employment.

Baldacci and members of the state Department of Economic and Community Development met with business leaders from across the state to brain-storm new approaches to growing business in Maine. While many at the summit agreed with the governor on the obstacles posed by high energy and transportation costs, they also cited access to investment capital and an expedited state permitting process as areas that need to be improved to promote job creation.