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STATE HOUSE

April 13, 2010

Reduced bond plan approved

Deal worked out with Republicans

By Susan M. Cover scover@mainetoday.com
State House Bureau

AUGUSTA -- The Legislature gave final approval to a $57.8 million bond package Monday after Republicans forced Democrats into weekend negotiations by balking at a larger borrowing scheme last week.

click image to enlarge

State Sens. Libby Mitchell, D-Vassalboro, Philip Bartlett, D-Gorham, and Bill Diamond, D-Windham, right, laugh with Rep. John Martin, D-Eagle Lake, second from right, Monday before the Senate voted on a compromise bond package. The Senate voted 31-4 to approve the $57.8 million package.

Staff photo by Andy Molloy

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The bonds approved Monday are different from last week's proposal.

Original/Revision

Highways: $34.8 million/$24.8 million

Aroostook Rail: $17 million/$7 million

Lewiston/Auburn Rail: $5 million/$5 million

Mtn. Division Rail: $5 million/$4 million

Portland Megaberth: $7 million/$6.5 million

Small harbor fund: $1 million/$500,000

Drinking water: $2 million/$0

Wastewater projects: $3.2 million/$0

Wind projects: $5 million/$5 million

Dental: $5 million/$5 million

Total: $85 million/$57.8 million

Changes to June bonds:

Weatherization $12 million/$0

Enterprise fund $5 million/$4 million

Historic preservation $1.5 million/$1.25 million

Land for Maine's Future $2 million/$1.75 million

Source: House Speaker's Office

The package received strong bipartisan support in the Senate -- earning a 30-5 approval vote -- and got just enough votes in the House on a 102-44 roll call to reach the supermajority needed for its passage.

The bond proposal, most of which will go to voters in June, includes $44.3 million in new borrowing and $13.5 million from pending bonds that were approved by lawmakers last year but have not yet been before voters.

The reconfigured package includes $24.8 million for highways, $16 million for railroads, $7 million for the Ocean Gateway Deep Water Pier in Portland and other small harbor improvements, $5 million for ocean wind energy, and $5 million for improved dental services.

Gov. John Baldacci signed it into law shortly after the Legislature adjourned for the year just before 5 p.m.

Part of the proposal asks for approval to float bonds to help preserve 240 miles of rail line owned by the Montreal, Maine & Atlantic Railway in Aroostook County.

The proposal approved Monday directs the state to borrow $7 million and take $7 million from the state's rainy day fund to purchase the lines. Also, the 20 or so shippers who use the lines will be asked to chip in $3 million.

The rail company has informed the federal government it intends to abandon the lines as soon as this summer.

Sen. Peter Mills, R-Cornville, said the rail line deal is structured so that the state can back out if necessary.

"If money in the bond cannot be put to good use in a sensible and business-like way, the state should walk away from the deal," said Mills, who is also a Republican candidate for governor.

A week ago, the Legislature's Appropriations Committee split along party lines on an $85 million bond package that Democrats said would create jobs, but Republicans described as too big. Democrats brought it forward and got just enough votes to get it through the House, but Senate Republicans held their ground and unanimously rejected it.

Democrats then delayed a final vote, saying they wanted to give people more time to think things over.

During Monday's Senate debate, two Senate Republicans said they were "targeted" over the weekend by phone calls from those trying to win their support. Sen. Gerald Davis, R-Falmouth, said the lower amount meant he could now support the bill.

"It is the American tradition to compromise," he said.

Senate Appropriations Committee Chairman Bill Diamond, D-Windham, said the new package is something few are happy with, but that is the essence of compromise.

"What we tried to do was find every little penny we could find to make this work," he said.

 Susan Cover -- 620-7015

scover@centralmaine.com

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