AUGUSTA — Gov. Paul LePage vetoed a $20 million research and development bond and let four other bonds go to voters without his signature.

LePage said he personally opposes the four bond measures, which would total more than $75 million and pay for wastewater and water investments, economic development, higher education and roads and bridges. Even if those bonds are supported by voters, LePage said he would delay spending the money until the state lowers its debt load.

“While these bond proposals were authorized by Legislators, it does not mean that we need to spend the money. I cannot personally support any of these bonds and will not vote for them at the polls in November,” LePage said in the written statement. “Even with the voters’ authorization to borrow this money, my administration will not spend it until we’ve lowered our debt significantly. That could be several years.”

In vetoing the $20 million research and development bond, LePage said that the expense was better suited for the operating budget.

“If the Legislature truly believes we should spend $20 million on research and development, then we should reduce spending elsewhere in the budget and pay for it out of the General Fund,” LePage wrote.

“Second, the majority of the funds from these bonds in the past have gone to government programs and not-for-profits. Taxpayer dollars should go towards R&D only when we can demonstrate a specific return on that investment. That return must be measured in taxes and jobs. Both of those rightly come in the private sector,” LePage said.

A recent report by prepared by the Maine Development Foundation for the Maine Economic Growth Council, however, found that the majority of R&D expenditures went to industry and higher education. Industry got 55.5 percent of Maine’s R&D expenditures, followed by 28.8 percent for universities and colleges, and 15.7 percent to non-profit organizations.

Lawmakers are expected to meet next week to consider the R&D bond veto and other vetoes.

Democratic leaders criticized the governor for blocking the research bond.

“This veto is shortsighted and bad for business,” Rep. Emily Cain, D-Orono, the House Democratic leader, said in a written statement. “Investments in R&D have paid off. They boost business, create jobs, and help our fisherman, farmers, and boat builders.”

The Democrats said Maine has lost more than 1,000 jobs since 2011 and ranks fifth in the nation for personal income growth.

“Why is the governor turning away opportunity? Blocking targeted investments in R&D will keep Maine at the bottom,” said Assistant Senate Democratic Leader Justin Alfond.

“Maine businesses are already among the least well capitalized in the nation. The R&D bond, while modest when compared to our $46 billion dollar GDP (gross domestic product), would have provided much needed investment capital to the companies that are the future to the state’s economy,” said John O’Dea, chief executive officer of the Associated General Contractors of Maine. “A lack of investment in Maine businesses is one reason why Maine’s rate of growth is expected to be about a third lower than the rest of the nation as a whole over the next few years.”

As a percentage of GDP, Maine’s R&D investment is about 1 percent, which trails the national average of 2.6 percent and the New England average of 4.7 percent, O’Dea said.

A 3-percent benchmark was the necessary investment to expand Maine’s economy and improve competitiveness, according to the Maine Economic Growth Council report.

The Maine Center for Economic Policy said it had been an advocate for a “robust” bond package and called the R&D veto unfortunate.

“R&D was a big part of that effort — to get the economy going and create jobs,” said Mark Sullivan, communications director for the Maine Center for Economic Policy. “These bonds are critical to fueling the economy and creating jobs. We’re still trying to recoup the jobs lost in the recession.”

Each bond has a ripple effect on the economy, Sullivan said.

“Roads and bridges are essential to Maine’s businesses to get their goods and services out into the market,” Sullivan said.

LePage also vetoed two other bills: An Act To Increase Gaming Opportunities for Charitable Fraternal and Veterans’ Organizations and An Act To Limit the Bonding Authority of the Maine Governmental Facilities Authority to Court Facility Projects.

Portland Press Herald Staff Writer Jessica Hall contributed to this story

 

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