AUGUSTA, Maine - One of the big items of unfinished business for state lawmakers is a state borrowing plan. Legislative leaders are working on details of a bond package for the full Legislature to consider when it reconvenes next Tuesday. But the negotiations appear to be shaping up like a replay of the battle over the state budget.In every legislative session, after the state budget is approved, lawmakers have a battle over bonds, specifically what bond proposals they will send to the voters for their approval. Budget passage is key because it determines how much money can be spent on those bonds that the voters approve.
This year is no exception. House Speaker Mark Eves, a Democrat from North Berwick says his caucus has some clear priorities. "Roads and bridges are a top priority," he says. "We have been pushing the affordable senior housing bond proposal, which is part of the Keep Me Home proposal that we have been talking about, Maine being the oldest state in the nation and really needing do right by those seniors that want to live independently in their homes."
The dozens of bonding requests far out-strip the state’s ability to pay for all of them. The total, which includes some duplicate bonding proposals, comes close to $1 billion. The individual proposals range from a few million dollars to over $100 million, but the budget only has enough debt service money to pay for about $140 million in new borrowing.
Senate President Mike Thibodeau, a Republican from Winterport, says his caucus is divided on borrowing, but he says most of his members will support a small package that includes money for roads and bridges.
"That is our focus," he says. "The Republican caucus is very committed to a roads and bridges bond package. Here you see the dynamics of divided government. We will have a conversation with our colleagues from the other side of the aisle about what their priorities are. But, it has to be about job creation."
Senate Democratic Leader Justin Alfond of Portland says leaders have to decide on an overall borrowing level and set some broad parameters on how the bonds will be structured that are sent to voters. He says the issues are well known and have been discussed broadly by lawmakers.
"These bonds have been around all session," Alfond says. "They have been heard in front of Appropriations. Individual sponsors have been talking to me, have been talking to folks on the other side of the aisle, so people are ready for the conversation. Now that the budget is almost done, it is time to get this done for the state."
House Republican Leader Ken Fredette of Newport is less optimistic about a bond package. He says there is little appetite in his caucus for a big borrowing package but he acknowledges the need for a highway bond. That's because without additional funding the Department of Transportation will not have any money for capital improvements a year from now when the current bonds have been expended.
"Looking at what the needs are, in terms of the transportation budget, you know I think they are looking at about eighty, eighty-five million dollars," Fredette says. "I think that is probably a good place to start, and stop, quite frankly."
The leaders hope to work out the broad framework of a borrowing plan in the next few days so the Appropriations Committee can meet and vote out the various bond bills, as amended, in time for the full Legislature to consider them on Tuesday.
It takes a two-thirds vote of the House and Senate to send a bond to the voters for their approval.
