Bonds win hailed as big investment Analysts: $147 million will benefit all

AUGUSTA – Although approved by only 25 percent of the state’s eligible voters on Tuesday, the $147 million bond package was described Wednesday by legislative policy analysts as a significant investment that ultimately will benefit all Maine residents.

With 98 percent of the state’s 661 precincts reporting, all six bond questions before the voters won healthy margins of victory. Question 1, which provides $10 million for affordable housing and $2 million for housing for domestic violence victims, was passed by 57.9 percent of the voters. Question 2, which will authorize borrowing $5 million for biomedical and marine research, was approved by 52.6 percent of the voters.

Question 3, the largest in the package at $61 million, was a transportation bond supported by 74 percent of the vote – the second-highest level of approval ever given to a transportation project. Mainers also gave strong support to Question 4, a $15 million initiative that will beef up the state’s school repair fund. It was approved by 68.6 percent of the voters. Question 5, a $17 million bond that read like a laundry list of environmental and agricultural projects, was approved with 64.8 percent of the vote. Question 6, a $36.7 million bond funding improvements at state colleges and universities, passed with 57.7 percent of the vote.

For Geoff Herman, a legislative policy analyst for the Maine Municipal Association, the voters sent exactly the kind of message that town and city government officials wanted to hear. All of the bonds, he said, will have positive implications for community planners.

“Obviously, we’re pleased,” he said. “This was a very important package, when viewed from the perspective of municipalities.”

Last spring, long before the Legislature’s Appropriations Committee selected the bond initiatives that appeared on Tuesday’s ballot, the MMA’s Legislative Policy Committee drew up its own list of priority initiatives from those submitted by lawmakers and the governor’s Cabinet. Somewhere between the MMA’s offices and the Blaine House, synchronicity was apparently in the air.

“Our priorities matched the governor’s priorities exactly, which ultimately became this package that was approved,” Herman said. “While the transportation bond, which obviously affects so many communities in Maine is the kingpin, the school renovation bond is also important since the limited financial capacities of many school districts make it difficult to keep up with repairs. This bond will bring the [School Revolving Renovation Fund] up to around $87 million toward its $100 million goal. It will especially help urban areas with much older schools that are not members of school administrative district systems.”

Herman said the environmental and agricultural bond was the “big Christmas tree” of borrowing issues since it would affect a range of projects that included wastewater treatment systems, landfill remediation, and the elimination of tire dumps. Also, for the first time since its creation in 1993, Herman said, the Municipal Infrastructure Trust Fund will receive an allocation from the state as the result of the voters’ decision.

“It assists comprehensive planning and growth management, providing money for growth area needs like roads, water and sewer lines, electricity and building rehabilitation,” he said. “There’s real need for targeted capital investment in growth areas and the trust fund was created for that purpose. The $300,000 provided by the bond is like a small sewer project, so it’s not an incredible amount of money. But if we use it right, we will be able to attract more money to the fund in the future.”

By crafting Question 1 in such a way as to address affordable housing needs in Maine and housing for domestic violence victims throughout the state, Herman said, proponents such as the Maine State Housing Authority were able to attract support for two projects that might not have met with success at the polls if presented separately. Michael Finnegan, MSHA director, said his housing agency would start immediately to allocate the funds effectively. In some cases, he said, the housing programs are already established, while in other instances MSHA may have to develop new programs to distribute them.

“When we combine the $12 million in bond funds with other state, federal and private housing funds we can raise, we could be providing up to $30 million in affordable housing funds,” Finnegan said. “This will make an appreciable improvement to the housing available to low-income Maine people.”

Although at first glance, issues such as the biomedical research bond and the university construction bond may not seem like topics that would pique the interest of town and city managers, Herman said the university and technical college systems provide many positive spinoffs in the regions where they are located.

“Our committee supported both of the questions,” Herman said. “The committee really believes there’s a powerful connection between the university system, research capacity and economic development.”

In other areas of the state capitol complex Wednesday, there was a mixed air of adulation and relief with the results of Tuesday’s balloting. Gov. Angus S. King was in Mexico on a trade mission and unavailable for comment. His chief of staff described the vote as sound thinking on the part of voters.

“All of the preliminary polling that was done by the typical polling sources indicated that people were reacting to the borrowing as an opportunity to stimulate the economy and we think that was the right way to view it,” said Kay Rand. “This is the right time to be making those investments and the right time to be borrowing.”