Gubernatorial Candidates Respond to Bond Proposal
This week, Maine’s Democratic leaders released their proposal for a $99.2 millions “jobs bond package.” The package would seek to put new construction projects into motion this summer. “Without more work for our construction industry from engineers to the people moving the dirt, we are looking at a dire situation this summer,” said House Speaker Hannah Pingree (D-North Haven). Democrats will have to gather support from House and Senate Republicans to forward the measure to a June vote. Candidates for governor have provided us with their opinions on the bond proposal. You may read their responses after the cut. We will be adding more responses as we receive them.
Bill Beardsley
The State of Maine should not increase its debt when revenues are down and budget support to local schools and municipalities is in decline. The future annual cost of paying down this debt will only worsen the shortfalls.
Borrowed money isn’t free. We need to pay it back, and we need to pay interest on the debt. That is why I believe that every cent we invest in roads, rail, and other infrastructure projects – whether from tax revenues, from Federal funds or from the proceeds of bond issues — should reflect decisions made in the context of a capital budget that sets priorities and that seeks to leverage Maine’s competitive advantages. That is the way to maximize job creation and economic development. And that is the kind of disciplined stewardship of their tax dollars that Maine people need and want.
Sen. [Libby] Mitchell and the Democrats haven’t told us very much about the projects that they want to fund with this bond issue. I know as well as anyone that many of Maine’s roads and bridges need repair, and the threatened loss of rail service in northern Maine is a grave concern for all of us. Yet, many Maine cities and towns have projects in mind that they would nominate for consideration in a special bond issue, but I suspect that they have not be included in this process. That’s the problem, and that’s a real issue.
There may well be elements of this proposal that deserve support, but I would want to be assured that they have been carefully considered in terms of priorities and impact. I don’t see any rational, disciplined process behind this proposal. Frankly, I wish that the Democratic leaders would also put a real effort into making Maine a more affordable and inviting place to do business. That would really create lasting jobs.
I also want to be assured that this new proposal is fully aligned with the bond package approved by the Legislature last June, the first installment of which was approved by the voters in November, and not simply added on top of that package for short-term political gain.
Matt Jacobson
The one good thing I can say about the effort is that the Democrats in the Legislature finally heard that we have a jobs crisis in Maine. Unfortunately, their approach to the problem is just more Washington/Augusta undisciplined spending. The next budget will have to deal with the loss of $600M of one-time Stimulus money that they used to balance the budget; we’ll have a $300M pension liability due; and did something happen in the last month that makes you believe that we have somehow gotten better at revenue forcasting and we will not have any more monthly revenue short falls? If you add these up, we are looking at a $1B reduction in the next budget. That this group thinks the best way to solve that problem is to take on another $100M in debt is legislative malpractice.
As a professional railroader, the solution they advocate, throwing money at the tracks, misses the fundamental problem. This particular railroad has been in bankruptcy – or abandonment – three times in the last 20 years. The problem is not that the railroad is hurting. The problem is that the policies of this group of legislators has run off the heavy industry in Maine that uses the railroad. The same can be said of our telecommunications and power grid companies. If we don’t bring jobs and businesses back, we can install platinum rails and it won’t do anything except put us further in debt. There are MUCH better solutions than to throw money at the MM&A.
This is policy designed by people who learned everything they know in a legislative briefing room in Augusta or Washington. This is why this election is so important. We need new leadership – leadership with experience operating industrial businesses here in Maine. We need someone who can innovate to solve problems. We need a leader.
Bruce Poliquin
The central question is whether Maine can afford to keep borrowing. We already spend millions every year to service existing debt and we certainly don’t want to pursue a course that puts Maine’s credit rating at risk. We can’t borrow our way to a prosperous private sector economy, so we shouldn’t be taking on additional risk without first reducing and prioritizing spending.
The more fundamental question is how this money is being managed. We know that the bulk of the “stimulus” funds went to cover social service programs. Instead of reforming these programs to bring expenditures in line with national averages, Augusta pumped in $300 million to fill the hole without making substantive changes to the programs. We also know that the Highway Fund has been continually raided to fill past budget gaps. Again, if Augusta had better managed those funds then, we wouldn’t be trying to borrow money to patch our streets now.
Lynne Williams
I think it is admirable that the Governors office recognizes the job losses that Mainers are experiencing, and want to address the issue. However, the jobs that this bond would create will mainly be construction jobs and while those are good jobs, they are short-term jobs. What we need to do is support those sectors of the Maine economy that produce long-term, well-paying employment. A good start would include health care jobs, including physical, speech and occupational therapy, dentistry, pharmacy, and similar jobs. And, the benefit would be that these job openings already exist – what we need to do is funnel this “jobs bond” money into an “educational bond”, so that we have an educated work force that can fill these jobs. It is time that we assess what jobs the state needs to fill rather than create make work jobs that are temporary.
