November 16, 2024
Archive

Voters pave way for financing of DOT construction projects

Early returns Tuesday night indicated that voters gave the Maine Department of Transportation more flexibility in financing its construction projects.

The constitutional amendment was being approved 88,027 to 69,835, or by 55.8 percent to 44.2 percent, with 236 of Maine’s 652 precincts reporting.

The amendment was seen as a device to help the state start projects sooner without having to wait for federal funding.

If approved, it would allow the state treasurer to issue short-term notes that would be repaid by federal grants. The grant anticipation notes would be similar to tax anticipation notes now widely used by municipalities to tide them over until tax revenues roll in.

Transportation Commissioner John Melrose emphasized that the proposed amendment was not a request for money but rather a request to use a cash-flow management tool used in other states.

The amendment limits the borrowing by MDOT to one-half of the federal transportation disbursement to Maine for the previous year, a sufficient protection against incurring debt that cannot be repaid. The 12-month repayment requirement will prevent MDOT from piling up debt into future years.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

You may also like