Bond package key to state projects

Nearly $2 million in road repairs in Presque Isle and Easton could be delayed; $50,000 in intersection improvements may be pushed back in Millinocket. Likewise, work on a railroad-crossing signal in Milo might not get done in the near future.

These are just some of the $260 million in projects that the Department of Transportation has planned to complete over the next two years. That schedule is now in jeopardy if Republican leaders fail to work with legislative Democrats to pass the latest $55 million bond package that has been proposed to pay for transportation projects, environmental clean up efforts, and money to secure land for Maine’s future.

The latest bond package, proposed by Democrats, includes nearly $12 million in funds to be borrowed for transportation projects. Failure to pass the transportation bond could put in jeopardy another $40 million in matching funds that would be awarded to Maine by the federal government. The bonus federal matching funds are out there to be used, and if Maine does not up its share of the match, then we could lose this money – money needed to fix roads and bridges throughout the state.

Across the state, from Kittery to Portage Lake, millions of dollars in transportation infrastructure projects could all be set back if a bond package is not passed. Nearly $5 million is needed to replace a bridge in Old Town and Milford. Of course you may be riding on a bumpy road to get to that bridge if the almost $2 million needed to resurface part of Route 2 in Old Town is not allocated in a timely manner.

Legislative Democrats continue to demonstrate good faith in their efforts to compromise with Republicans on bonds by agreeing to a $55 million bond issue, less than half the $120 million bond package initially proposed. We can’t do it alone. Under law, Democrats cannot put a bond package on the ballot in November without the support of two-thirds of the Legislature, and that requires Republican support.

This modest bond package will help pay for these projects on the timeline originally proposed. If a bond package is not put out to a vote then two things will happen. Maine people will not be given the choice at the ballot box to decide if these projects are necessary. The other outcome will be that DOT will have to reprioritize $260 million in projects and redistribute the funds it budgeted. One scenario could be that $50 million in projects could be delayed.

The Association of General Contractors has said that for every $1 million spent on new construction, 35 jobs are created. These construction jobs are good-paying jobs, and are needed. In addition, the AGC has also pointed out that bonds stimulate the economy by generating $2 in economic activity for every $1 spent.

While I can’t say for certain which projects out of the 384 that are scheduled will be pushed back, I do know that on our current course we could be down $50 million to pay for many of them.

Maine can afford this bond package. Our debt ratio is small right now and the rates to borrow this money are low as well. Maine people have always been responsible when it comes to bonds, and when the Legislature has proposed bonds it has done so in a way that limits our total tax-supported year debt service under the 5 percent mark.

Maine’s 2005 tax-supported debt ratio is expected to be just over 4 percent – well under our target level. In addition, Maine this year will retire $67 million in debt from previous years. Again, passing this bond proposal will accomplish many goals that serve to invest in our state’s future. Republicans should support the new compromise bond package, which will give Maine voters the final say on this matter.

Stephen S. Stanley, a Democrat, is the state senator from District 3 representing communities in Penobscot and Aroostook counties. He is the Senate chair of the Taxation Committee.