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STATE HOUSE

House passes bond package

Measure approved by one vote after spirited debate

By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer

AUGUSTA -- An $85 million bond package passed by one vote in the House late Wednesday as lawmakers weighed in on a plan that includes money for Aroostook County rail lines and a major expansion of a Portland pier.

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PAYBACK: Rep. Sawin Millett, R-Waterford, speaks against a proposed $85 million bond package Wednesday on the floor of House of Representatives. Following lengthy debate, the bond measure passed on an initial vote 94-53.

Staff photo by Andy Molloy

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The package passed 100-48 on the final House vote, which required support from two-thirds of those present and voting. It was then sent to the Senate, where its future was uncertain.

Debate in the House focused largely on $17 million in the proposal earmarked for the purchase of more than 230 miles of rail lines in Aroostook County.

Representatives from northern Maine made their case during morning and afternoon debates.

Rep. John Martin, D-Eagle Lake, who has played a role in the Legislature since 1964, said Aroostook County has lost a lot over the years and that it cannot afford to lose more.

He said if they don't save the rail lines, it would be the "death knell of Aroostook County, as far as being able to produce jobs for even our own people."

Rep. Bernard Ayotte, R-Caswell, asked members to put aside geographical considerations and vote for the bill to avoid the abandonment of the lines this summer.

Rail service gives more than 20 businesses in Aroostook County a way to ship goods, he said.

"I would therefore ask the people of southern Maine to understand we need each other," he said. "Do not the people of southern Maine eat potatoes? Do not the people of southern Maine use timber to build their homes?"

The package includes nearly $70 million to pay for for rail and highway improvements and the Ocean Gateway Deep Water Pier in Portland. There's $5 million for ocean wind energy sites, $5 million for water and waste-water improvements, and $5 million for a new dental clinic and to expand access to dental care statewide.

Borrowing $85 million is estimated to cost nearly $19 million in interest, bringing the total cost of borrowing to almost $104 million, according to the state's fiscal office.

Such debt is unacceptable, given the state's current financial picture, said Rep. Sawin Millett, R-Waterford.

He said the state is facing a "cliff" in the next budget cycle that could total more than $1 billion. The state accepted more than $728 million in federal stimulus money that will run out, and it took $166 million out of the working capital fund, he said. There's also an estimated $350 million increase in the retirement system debt, he said.

"You're adding back $25 million of brand new debt service on the heels of a $1 billion gap and obligating the next five Legislatures to honor that obligation," he said.

In the Senate, Republicans attempted to offer alternatives that included spending less or renegotiating bonds already scheduled to go before voters in June and November; but Democrats rejected all those options.

That led to a reaction from Sen Earle McCormick, R-West Gardiner, who said he and other Republican senators would have been happy to support a smaller bond.

"I get it, you want $85 million," he said. "You don't get it. Don't blame us, blame yourselves."

Sen. Roger Sherman, R-Houlton, agreed, saying he wanted to support funding for the railroad but the Democratic proposal was too expensive.

On an initial Senate vote, the bonds won a 20-14 majority, but that was short of the two-thirds needed for enactment.

"I'm just disappointed we dug our heels in," Sherman said. "This is more than a big deal. It could be the end-all for some of these folks."

Yet Democrats said the package keeps the state within an acceptable level of borrowing and will create jobs over the summer in construction, an industry that needs the help.

"These companies will bid very aggressively," said Rep. David Van Wie, D-New Gloucester. "I hate to take advantage of them, but this is the time when this money would get the best leverage."

Ayotte, the Aroostook County Republican, said the loss of the rail lines would have "a very devastating effect on the people and the industry of northern Maine."

"Can you imagine Aroostook County, the largest county east of the Mississippi, without a railroad?" he said. "Use some common sense. It's a vital part of our economy."

Susan Cover -- 620-7015

scover@centralmaine.com