Baldacci proposes bonds
for projects, nearly 2,000 jobs
By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer
AUGUSTA — Gov. John Baldacci proposed a $79 million borrowing package Wednesday that he said would create nearly 2,000 jobs.
The package includes $62 million for highway, port and rail projects, including a deep-water cruise ship berth in Portland. It also would provide $17 million for environmental and energy needs.
"This is not a laundry list of ideas," Baldacci said during the announcement in his office. "Instead, it's focused on investments to build Maine's economic capacity into the future while creating jobs today."
Three bond proposals are already on the June ballot: $33.5 million for weatherization, wind power and education; $25 million for economic development, including projects at the soon-to-be-closed Brunswick Naval Air Station; and $10.25 million for environmental projects.
Baldacci's proposal came a week after Democrats in the Legislature proposed a $99 million bond package. Both proposals will go to the Appropriations Committee for consideration.
Sen. Richard Rosen, R-Bucksport, a member of the Appropriations Committee, said he thought bond negotiations were completed last year when lawmakers agreed on a $150 million package to be voted on in three installments. At the time, Republicans would not go higher because they felt $150 million was a responsible level for the entire two-year budget cycle, he said.
"I thought we had a negotiated agreement for the biennium," he said. "I have to admit, to me, it feels like Democratic gubernatorial primary politics at play."
Nevertheless, Rosen said that if Democrats can prove there is money to pay for additional debt, he will take a closer look at the contents of the proposals -- particularly money for transportation.
Baldacci, who set aside money in the budget to begin paying back the bonds, vowed to work with Republicans to put together a plan. No bonds will move forward without Republican support, because bonds require two-thirds votes in the House and Senate.
"I'm going to build bipartisan support," Baldacci said.
His proposal and the bigger one by Democrats have some similarities.
Both call for $17 million to $20 million to buy and maintain the Montreal, Maine & Atlantic Railway, which has more than 200 miles of track in Aroostook County. The company has told the federal government that it plans to abandon the railroad as soon as this summer.
Both plans also propose $5 million for passenger rail in Lewiston-Auburn and $5 million to $7 million for water and wastewater projects.
One new project in Baldacci's proposal is $8 million for the Ocean Gateway Deep Water Pier in Portland.
"When you talk about the megaberth in Portland, it's going to be critical because they tell me they have the opportunity to triple the number of cruise ships coming in," Baldacci said. "You're talking about tourism and economic development streaming into Maine."
Baldacci also calls for $28 million for highway projects, which is projected to support 750 construction jobs. The money would pay for about 14 miles of highway reconstruction and 31 miles of paving across the state, according to the Governor's Office.
Transportation Commissioner David Cole said the state has spent all of its federal stimulus money for transportation, so it is looking to take on new projects this summer.
"These are all bread-and-butter projects," he said. "They have the added benefit of creating jobs now."
The state has about $508 million in outstanding general obligation bonds and $140 million in bonds approved by voters but not yet borrowed upon, according to the state Treasurer's Office.
Standard & Poor's rates Maine bonds "AA," which implies "very strong capacity to meet financial commitments," according to the company.
Ryan Low, commissioner of the state Department of Administrative and Financial Services, said Maine pays off its bonds in 10 years -- a more aggressive payback schedule than most other states. In the 2012-13 budget, the state will retire $150 million of its debt.
Baldacci said the state must be ready to move forward.
"I know some people are concerned about borrowing, but we can't sit around and hope and wait for the economy to improve," he said.
Senate Minority Leader Kevin Raye, R-Perry, said the governor's plan, while less expensive than what legislative Democrats proposed, concerns Republicans.
"I think it's still too large," Raye said. "It's a step in the right direction. There's significant concern among Republicans in the Legislature about our capacity for borrowing."
The Associated Press contributed to this report.
MaineToday Media State House Reporter Susan Cover can be contacted at 620-7015 or at:
scover@centralmaine.com
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46 COMMENTS
Rocky4 said...
VOTE NO! Bond package = HIGHER TAXES Investment = HIGHER TAXES Borrowing $$$ = HIGHER TAXES Paying INTEREST = HIGHER TAXES STOP THE MADNESS!!!!!
March 11, 2010 at 4:35 AM Report abuse
Felix said...
BOZO AND HIS CRONIES HAVE LIED ONCE AGAIN ABOUT ANOTHER BOND ISSUE, LAST YEAR WAS SUPPOSED TO BE IT FOR THE REST OF 2010!!!! THIS MONEY WILL BE PEED AWAY ON UNPROVEN COSTLY BOONDOGGLES LIKE A PIER THAT NEVER WILL PAY FOR ITSELF, AND ROAD WORK WHERE IT ISN'T NEEDED. IT IS PURE CRAP AND WE TAXPAYERS WILL ONCE AGAIN GET STUCK WITH THE TAB!!! DO YOU TRUST THIS WHINING SPENDOCRAT AND HIS TROUGHMATE HACKS TO SPEND YOUR HARD EARNED MONEY WISELY AND FAIRLY??? I THOUGHT NOT.
March 11, 2010 at 5:04 AM Report abuse
Felix said...
MORE BOND PORK FOR THE UNION RULERS OF DISGUSTA, AND ANOTHER HUGE TAB YOU GET TO PAY!
March 11, 2010 at 5:13 AM Report abuse
mohonk said...
Hey, we are broke -- let's spend some more money.....These new jobs described will be primarily from out of state contractors.....look at the Maine record. See the piglet book.
March 11, 2010 at 5:25 AM Report abuse
DasBoot said...
Is there a bigger idiot then Baldacci. This is a joke. What about the gas tax that gets raised every July 1st for fixing the roads. This state government hasn't created a job in 30 years other than gov jobs. Too bad the next Gov won't be any better.
March 11, 2010 at 5:27 AM Report abuse
UofA said...
That is right, Gov. Taking your words, "we can't wait around for the economy to improve"! Let's borrow some more so it doesn't happen. Why don't you put your salary plus all of your special assistants wages into the Treasury? Do one thing for the State of Maine before you slither to Bangor.
March 11, 2010 at 6:22 AM Report abuse
Govt2Big said...
Stop this madness! We need to CUT spending and stop increasing the MAJOR debt load on our children and grand children. It;s time for all of the pro-tax extreme liberals to find a socialist or communist country to live in. God bless our USA!
March 11, 2010 at 6:44 AM Report abuse
EllenW said...
People who know nothing about long term debt used to finance capital projects should educate themselves or keep quiet. Maine's debt structure is actually quite conservative relative to other states which is why our bond rating remains so good. Baldacci has made great strides in reducing the "hidden" liabilities that were left over from the McKernan and King administrations (mostly to hospitals and the state retirement system). Those two governors both balanced their budgets through totally dishonest borrowing that they called something else. Our bond debt is very, very reasonable even with this new proposal, and Maine government's books are in significantly better financial shape at the end of Baldacci's administration than when he took over from those two shysters who went before him. And he has managed this in spite of the worst recession since the great depression.
March 11, 2010 at 6:45 AM Report abuse
jude said...
Ellen, what are you doing here? As a general rule, people who actually know something stay away from this forum. To the others, read the article. The money to repay any bonds we'll vote on is already budgeted. By voting no on bonds issues, you all believe that crumbling, outdated infrastructure is the way to attract new businesses improve the economy.
March 11, 2010 at 7:10 AM Report abuse
jude said...
Ellen, what are you doing here? Generally people who actually know something stay away from this forum. To the others, read the article. The money to repay the bonds has been budgeted. By voting no on this bond issue, you all must believe that the way to attract new business and improve the economy is to rely on crumbling, out-of-date infrastructure.
March 11, 2010 at 7:18 AM Report abuse
jude said...
Anything worth saying once, is worth repeating.
March 11, 2010 at 7:21 AM Report abuse
bubbagump said...
Thats right, borrow money and send it out of state. How many days until Baldacci is done? Can not be soon enough. LIke ProCon says. Never ever elect a democrat of a liberal!!!
March 11, 2010 at 7:37 AM Report abuse
ModerateOne said...
Most of these bond proposals are a direct aid to business. Business is always telling government to get out of the way. Maybe this is the place to start.
March 11, 2010 at 7:37 AM Report abuse
golf said...
Felix drink some more coffee, the unions will have nothing to do with these jobs. They will be done by non union dirt contractors. I do not support these proposels by Baldacci. What do you except from a former pasta house worker.
March 11, 2010 at 7:38 AM Report abuse
tax22dth said...
HEY BALDY !! How about the rainy day fund !! Or is that been pi$$ed away in the "GENERAL FUND" !!
March 11, 2010 at 7:47 AM Report abuse
SL said...
Welcome to Maine. This is the same as paykng your bills using a credit card. You then have to pay the money back plus create more jobs later, it's a cycle.
March 11, 2010 at 7:53 AM Report abuse
MainenCrisis said...
The real joke is on us. Most people have no idea what a bond is and those are people who vote. they see it as just allocating money we have and DO NOT know its borrowed money with intrest. There should be big bold letters that say " Bonds are loans tax payers pay back with intrest" and give the terms of the loan, after the voter clicks the yes I understand this button then they can vote. These bonds are a joke but its not funny.
March 11, 2010 at 8:07 AM Report abuse
MainenCrisis said...
Ellen - its the "Good Debt" mentality that got us into the financial mess we are in. We may be able to meet our bond obligations but if we had less obligations we could spend les and tax less and that the real goal of many of us in this state. Just because my only debt is my mortgage doesn't mean its a good idea to go buy on a CC. I could easily but its not smart fiscal sense. A balanced budget and fiscal planning is the key not the tradition of indebtedness.
March 11, 2010 at 8:11 AM Report abuse
MainenCrisis said...
Hey Jude....(sigh) if the turnpike and other allocated funds for roads and bridges were not constantly robbed to help the genreal fund we ould have plenty of money but when you pour it all in one jar you get to say "my road jar is empty i need to borow or I will ahve bad roads" Dumb and people like you eat it up.
March 11, 2010 at 8:14 AM Report abuse
RC10 said...
EllenW and Jude are right. All of you naysayers must live in trailers or shacks with dirt floors, and walk everywhere you go, because you clearly would NEVER borrow the money for a decent home or car. Get real. Bonds are how long term capital projects are funded, and Maine IS very conservative with its debt. Or, perhaps you'd like to put up a fence around Maine so we can become a third world wilderness park. But that fence would cost money too, which we'd have to borrow.
March 11, 2010 at 8:17 AM Report abuse
jude said...
Mainencrisis--I agree with one thing you said. Explaining the bond process on the ballot is a good idea. But these bond proposals won't make it to the ballot without bipartisan support, so voting for them makes perfect sense if both Democrats and Republicans support them.
March 11, 2010 at 8:45 AM Report abuse
common_cents said...
Obviously, the Dem's have raided and pillaged the various road accounts filled with gas taxes. Let's look at a key objective measure THE ROADWAY DEFICIENCY INDEX. You'll a nice graph in the 2010 Measures of Growth prepared by the Maine Development Foundation. This Index is a composite measure of the percent of pavement in poor condition, the percent of bridges that are structurally deficient, and the percent of road mileage that has lanes narrower than 11 feet, an indicator of a substandard road." From 2003 to 2008, the amount of poor pavement has tripled! 386 bridges are on a DOT 'watch list; between 16-23% of Maine roads are posted every spring because they "are not built to modern standards and often pose safety and reliability problems...hurt(ing) business and industry."
March 11, 2010 at 8:50 AM Report abuse
Micto said...
Why buy a railroad that is going to be abandoned? Must be because it's making so much money right?
March 11, 2010 at 9:05 AM Report abuse
HARRY said...
VOTE NO !!!!!!!!!!!!!!! NO MORE BONDS. The state can't pay the bonds we already have. The state is bankrupt.
March 11, 2010 at 9:08 AM Report abuse
common_cents said...
Maine's roads are given the equivalent of a 'new coat of paint'...looks great, politicians do photo ops, and a year later the road looks like it did before...DUH! Narrow roads are cheaply widened and went you drive them you notice how the edges 'break off' because there is little support under the expanded road...mile after mile of roads where the edges crumble off leaving you a single lane road. Inspected a bridge over the Cathance river yesterday; and notice the rusty re-bar sticking out of deteriorating concrete. 386 bridges like that and the disGUSTAcrats want to bring the Downeaster to Lewiston!!!!!
March 11, 2010 at 9:31 AM Report abuse
ProConserv said...
liberal a-holes! You can not borrow your way out od debt! The way out of debt is to put more people to work in maine with PRIVATE INVESTMENT! You will not attract private investors with high taxes...so you know what must be done...CUT TAXES not borrow more money!
March 11, 2010 at 9:48 AM Report abuse
ProConserv said...
EllenW ...you should move to new york, new jersey or california where they really, really, really like socialism!
March 11, 2010 at 9:50 AM Report abuse
RC10 said...
common_cents said... Obviously, the Dem's have raided and pillaged the various road accounts filled with gas taxes. WHAT? This is pure, rhetorical B.S. While over the years a few Highway Fund bucks were spent on the Maine State Ferry Service and to "purchase" the Maine DOT building in Augusta, that was only a pittance and would have made no difference on the horrible state of our highway infrastructure. So stop with the B.S.
March 11, 2010 at 10:02 AM Report abuse
ModerateOne said...
You watch. The Maine Chamber of Commerce will support this bill. Even conservatives like spending when they reap the benefits. Notice the state's top Republican, Kevin Raye, didn't object to the bonds in principal, only to the size.
March 11, 2010 at 10:07 AM Report abuse
Iwatch said...
Hmmm, let's see: Borrow money to create jobs. Sounds like payoff/payback time. By the way are any Baldacci family or friends invested in Old Port Portland area? Taxpayers please be wise.
March 11, 2010 at 10:31 AM Report abuse
Kidatheart said...
Pro...You've got to learn to emote more...your message is getting lost...You've become a caricature in the ilk of Oak.
March 11, 2010 at 10:43 AM Report abuse
ProConserv said...
Kidatheart...The message IS the same due to the fact that the problems are the same! SPENDING !!!!...Here is another piece of advice...Never...Ever...elect, trust or believe a democrat, liberal or progressive!
March 11, 2010 at 10:59 AM Report abuse
Kidatheart said...
You've got to become more forceful with your comments, Pro. Again...I'm not sure your anger is coming through. People are unclear as to which side you are blaming for the mess. They're not getting your message. Clarity and purity of message is being lost.
March 11, 2010 at 11:09 AM Report abuse
ModerateOne said...
The liberals have pretty well messed up things here in Maine, and are doing their best to make Washington worse. But, the conservatives took a great situation in 2000 and totally wrecked it. As far as states go, conservative states like Tenn., Mississippi, Alabama, and South Carolina are in worse shape than Maine. The bottom line is extremists on both sides are self serving and have been proven ineffective. Go to the middle where people actually think for themselves.
March 11, 2010 at 11:32 AM Report abuse
RickD said...
You can bet the blonde teenager that never held a job and obviously cannot balance a checkbook will be pushing this bill through the house. No one in Augusta gets it, this is a welfare state thanks to their efforts.
March 11, 2010 at 12:19 PM Report abuse
xcalibur1066 said...
$79 million for 2,000 jobs = $39,500 per job. Something does not seem right.
March 11, 2010 at 12:20 PM Report abuse
Badoog said...
Two thousand people are going to share $79 million. That's $39,500 per person. Where do I buy this lottery ticket?
March 11, 2010 at 12:22 PM Report abuse
ModerateOne said...
xcalibur1066 said... $79 million for 2,000 jobs = $39,500 per job. Something does not seem right. X, There is more to projects than labor. They might have to buy materials...
March 11, 2010 at 12:26 PM Report abuse
xcalibur1066 said...
Yup, if they spend $29 million on materials that would drop the per job $$ to $25,000. The jobs number is a red herring. Are these jobs created? Saved? Touting this as a "jobs" bill is misleading.
March 11, 2010 at 12:34 PM Report abuse
wollydevil said...
Do any of you know how much it cost to build a new road per mile it cost 1,000,000. Do you know the cost of hot top now cost i believe 7,500 a ton plus what about the contractors cost?
March 11, 2010 at 2:14 PM Report abuse
common_cents said...
DisGUSTAcrats screw small maine towns over road repair promises: Maine DOT to cancel most maintenance paving work June 19, 2009 2:59 PM AUGUSTA, Maine (AP) — Citing reduced funding levels, the Maine Department of Transportation says it's canceling about 75 percent of all maintenance paving projects over the next two years. ... the work involves road surface treatments that prevent water and ice damage, extend road life and avert the need for more costly repairs later. ...unless more resources become available, the DOT will cancel nearly 40 percent of this year's maintenance surface treatment projects and all of next year's. Has 38% Paid Back All the Money He "Borrowed" from the DOT Yet? So much for all the municipal promises that spending town money would garner state funds for road repairs and work.
March 11, 2010 at 3:17 PM Report abuse
common_cents said...
Maine DOT to cancel most maintenance paving work June 19, 2009 2:59 PM AUGUSTA, Maine (AP) — Citing reduced funding levels, the Maine Department of Transportation says it's canceling about 75 percent of all maintenance paving projects over the next two years. ... the work involves road surface treatments that prevent water and ice damage, extend road life and avert the need for more costly repairs later. ...unless more resources become available, the DOT will cancel nearly 40 percent of this year's maintenance surface treatment projects and all of next year's. Has 38% Paid Back All the Money He "Borrowed" from the DOT Yet? So much for all the municipal promises that spending town money would garner state funds for road repairs and work.
March 11, 2010 at 3:31 PM Report abuse
common_cents said...
Don't mean to double post, but there is a def. lag on here and some quirky reaction to html code!
March 11, 2010 at 7:03 PM Report abuse
Uvebenhad said...
Do we want the state to go another bazillion dollars in dept at this time to pay a bunch of asphault rakers and steam roller operators to smooth roads that the Maine voters agree to improve every single year with a bond on election day???? Answer = No enough is enough. No more borrowing.
March 11, 2010 at 7:20 PM Report abuse
DasBoot said...
WE PAY A GAS TAX TO COVER THE ROADS. A TAX THAT GOES UP EVERY JULY. THERE'S AS MANY IDIOTS ON HERE AS THERE ARE IN AUGUSTA
March 11, 2010 at 7:29 PM Report abuse
trisailer said...
I think you should save your money to pay to support all the out of work people that Maine will have for the next few decades since wall st has raped Maine for all she was worth. I would suggest that the money be spent for fishing poles so people can eat but the fish are all contaminated with mercury.
March 12, 2010 at 8:17 AM Report abuse