An average of 135,000 people about one out of every nine Mainers were on food stamps each month in 1995. That was far above levels seen in the late 1980s, before the recession of 1990-92. Government support for welfare and job-training programs is falling despite Mainers' increasing need for assistance. The federal government is making substantial reductions in spending as well, including cuts in programs to retrain laid-off workers and a 37 percent reduction in aid to Maine homeless shelters. Charities cannot make up for the decline in government assistance.
Fewer people can afford to contribute.
The number of donors to United Way of Greater Portland declined from 36,400 in 1991 to only 32,700 in 1995. The Salvation Army brought out its Christmas kettles in February this year to make up for a 16 percent drop in giving during the 1995 holiday season. Falling wages and job insecurity threaten overall economic growth. When people fear for their jobs, they don't make major purchases. The state is already seeing some warning signs of a slowdown.