Many Maine residents know they’ll be facing a yes-or-no referendum question on bear baiting when they enter the ballot booth Nov. 4.

But the state ballot sheet doesn’t end after Question 1. Voters also will be asked to approve six bond issues totaling $50 million to help finance new research labs, small-business loans, water quality projects and investments in Maine’s marine economy.

The borrowing proposals – featured as questions 2 through 7 on the ballot – face tough competition for voters’ attention during an election year dominated by high-profile races for governor, Congress and the Legislature.

Groups supporting the bond measures have organized various “yes” campaigns to get the word out about their initiatives amid all the other election-year messaging in hopes of avoiding voter fatigue lower down on the ballot.

“We want to make sure people know that there is a question on the ballot that will have direct benefits for clean water and jobs,” said Tom Abello with The Nature Conservancy, which is part of a coalition of nonprofit, government and business groups supporting a $10 million water quality bond on Question 6.

General obligation bonds are one of the ways that state and local governments borrow money to pay for big-ticket projects. In Maine, bonds are typically paid off – or “retired” – within 10 years.

As of Sept. 30, Maine had a total of $449.6 million in outstanding bond debts, including anticipated interest costs.

If voters approve the six measures and all of the bonds are sold, the state projects it will pay up to $11 million in interest on the $50 million debt. That figure is based on a 4 percent interest rate, which is significantly higher than the current interest rates for new bonds, said State Treasurer Neria Douglass.

Douglass, a Democrat who has clashed with Gov. Paul LePage over the Republican’s decisions to delay or withhold bonds, pointed to a Moody’s Investors Service report from May 2014 that placed Maine’s tax-supported debt at $951 per resident, and debt as a percentage of personal income at 2.4 percent. Both of those figures are below the national medians of $1,054 and 2.6 percent per capita.

“Interest rates are certain to rise because they can’t get much lower,” Douglass said. “It’s an environment where we should do all we can to invest in capital projects because they are going to be more expensive in the future.”

Maine voters approve an overwhelming majority of bond measures, but the failure of an $11 million higher-education package in 2012 demonstrates that approval is not guaranteed.

Matthew Gagnon, CEO of the conservative Maine Heritage Policy Center, is among those who argue that the state should pay for projects through the budgeting process rather than by taking on debt that will incur interest charges.

“I think it is an unfortunate trend that … bonding is the go-to solution for large projects,” Gagnon said. “Debt in general is something that we prefer to avoid at all costs.”

Credit rating agencies have noted Maine’s comparatively low debt load as one factor in assigning positive ratings to the state. In June, Moody’s Investors Service cited the state’s “conservative debt structure” among three strengths when revising the state’s outlook from “negative” to “stable” and affirming an Aa2 rating for the state’s general obligation bonds.

“The revision of the outlook to ‘stable’ reflects the state’s stable revenue picture, progress towards structural balance, and actions to address liabilities related to pensions and retiree health care costs,” Moody’s said at the time. “Offsetting these improvements is an economic recovery that lags the nation. Over the long term, weak demographic trends will hinder Maine’s growth.”

Moody’s raised concerns about Maine’s small “rainy day” reserve funds. And earlier this year, LePage ordered Douglass to delay issuing nearly $100 million in voter-approved bonds because the Democrat-controlled Legislature planned to tap into $21 million of the state’s $60 million rainy day fund.

Later in the spring, LePage allowed the water quality and marine bonds to become law without his signature, but he vetoed the bond measure for small-business loans – Question 3 – because he said the loan program “does not yield the highest return on Maine taxpayers’ investment.” The Legislature overrode LePage’s veto of the Finance Authority of Maine bonds.

Ron Phillips, president and CEO of one of the economic development organizations that administer the loans, said the program fills a gap in the lending market by assisting new or smaller businesses that likely could not qualify for loans from banks. Phillips called the loans “patience capital” that are repaid over time and with lower profit margins. His organization, Wiscasset-based CEI, has made loans to about 90 businesses with 1,500 employees.

“They are not earning venture-capital yields or a high yield (on the loans), but we measure the social benefit in a different way than the governor,” Phillips said. “The company is paying bills, paying employees and paying taxes.”

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