November 24, 2024
Editorial

Settling on Bonds

When negotiations begin by the governor conceding his position is no longer his position, the best thing his adversaries can do is quickly make an offer that favors theirs. This is partly the case with the debate over Maine’s next bond package – the governor has announced his original $197 million package is too large – but Republicans have yet to say where they are on bonds.

They should, and in the process help improve a legislative session began well with the passage of LD 1, collapsed in the middle over the budget and staggered to a semi-conclusion last week. A solid, bipartisan bond package would strengthen the record of this Legislature, but to negotiate the Legislature must have two sides at the table.

The governor’s bonds include money for municipal drinking water and waste-water disposal, a necessity, and university and community-college renovations that save money long-term by keeping facilities working well. But both of these are small compared with his three major categories: an expansive definition of R&D ($79 million); highways and waterfront ($38 million); and land purchases ($50 million).

Republicans have so far talked about the need for the highway funding, an expenditure that hardly anyone ever objects to, but have been quiet about the rest. Republican Sen. Peter Mills of Cornville, during a press conference Monday announcing the victory for the People’s Veto in the budget debate, said he favored bonding in several areas, with a total of perhaps $100 million.

Just as a person buying bonds as an investment would know what kind of return to expect, Maine has a track record it can use to predict what it will get by raising money for specific projects. Highway funding, for instance, leverages a substantial amount of federal money to at least make a dent in the huge number of road and bridge projects statewide and the money provides work at least for the length of the bond.

The R&D bond not only has better match rates from the federal government, the work it generates produces permanent jobs and new industries for Maine, as expanded research at places such as Jackson Lab, MDI Biological Lab, the University of Maine, Maine Medical Center Research Institute and other facilities have demonstrated. Maine began investing in R&D late and contributes less in these competitive fields than most states, so this line should be the last place cut in negotiations over this year’s bonds.

Both Democrats and Republicans say they want a bond vote this year and both agree that $197 million is too large. They will conclude, if they are sensible, somewhere between $100 million and $150 million, with all areas taking some cuts and investments that raise outside funding taking the least. It is an opportunity for the parties to demonstrate they know how to work together as well as compete.


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