RAINY DAY WOMAN

Nearly every state has a rainy day account and a mechanism that sends revenues its way, just as Maine does. Many of them also have sentry legislation that keeps the money from being used unless a super majority of legislators approve, which Maine doesn’t, but could have under LD 1422. The bill provides a sensible way to build up the state’s savings account and make decisions to spend it down a bipartisan decision.

Introduced by Rep. Barbara Merrill of Appleton, LD 1422 has gone through several modifications this session, the latest of which is a slimmed down version, asking that a constitutional amendment require lawmakers add at least 0.5 percent of revenues to the fund each year until it reaches 2.5 percent, halved from the original proposal of 5 percent. That lower amount equals roughly $150 million based on current revenues, and should be looked at as more a floor than a ceiling. Recall that Maine had $143 million in reserves when the recession of 2001 hit and then suddenly it had next to nothing.

To spend down the Rainy Day Fund below this floor would require a two-thirds vote of the Legislature, which means bipartisan agreement that a true emergency had occurred, or failing agreement in the Legislature, a referendum vote of the public. The requirement makes both Democrats and Republicans responsible for solving Maine’s fiscal problems and means a solution is less likely to become a campaign issue. Rep. Merrill, among the majority Democrats in the House, said she is receiving support from both parties.

Rep. Merrill’s bill further demands a two-thirds vote when lawmakers approve borrowing. This is required for general obligation bonds now but not for revenue bonds, which have become an increasingly popular means to raise money for projects without the usual scrutiny by voters. Again, it makes fiscal accountability a bipartisan practice.

Democrats outnumber Republicans in the House, 76 to 73 in the Senate, Democrats hold 19 of 35 seats. The closeness of these numbers not only shows how divided is Maine in its politics, it also suggests how easily the party in charge could switch. Even if Democrats aren’t thrilled with LD 1422 from their current status, they might concede the bill would look considerably better from a minority viewpoint.