Federal matching funds maximize bond packages

Gov. John Baldacci and the Maine Legislature are now considering several bold measures to promote prosperity and opportunities for our citizens without sacrificing what makes Maine the place we love. As part of this initiative, Maine legislative negotiators have recommended a $295 million bond package in three installments. The June 2007 ballot will contain $131.3 million in bonds, mostly to modernize our aging transportation systems. The November 2007 ballot will have another $134 million in bonds – $43.5 million for higher education projects and other education initiatives, $55 million for the state’s research and development sector, and $35.5 million for natural resources, including the Land for Maine’s Future program. Finally, the June 2008 ballot will have another $30 million, again mostly for infrastructure.

Significantly, this bond package will leverage tens of millions of additional dollars from the federal government which are only available if the state provides matching funds. In many instances, each dollar in state funds draws in two to 10 times as much in federal funding available at no additional cost to Maine taxpayers. The state would not receive this federal funding without matching bond revenue.

Indeed, as the costs of major public investments soar, federal contributions are often indispensable. For example, the cost of replacing aging water treatment and sewage infrastructure and bridges can overwhelm the budget of a Maine town or city. Superhighway construction is beyond the means of the state budget. Similarly, Maine can capitalize on its creative economy, outstanding people and innovative ideas far better if we multiply Maine’s R&D investments with federal funds.

I have been successful in securing federal funding to ensure that such joint projects can move forward. Examples of federal-state funded new construction include the revitalization of Westbrook’s downtown area and the planned Gorham Village bypass. Federal grants for infrastructure repair and replacement have been vital to upgrades to the water and sewer systems in Augusta, Gardiner, Machias, Saco and Sanford, and the replacement of the car ferry that links Vinalhaven and Rockland. The successful Community Development Block Grant program has been used for downtown revitalization in Caribou, historic preservation in Monmouth, and a new sanitary and storm sewer system in Sanford.

Critical habitats and prime recreational areas have been protected from development as a result of combined federal, state and private efforts. Examples include the Maquoit Bay Project in Brunswick; the purchase of forestland and conservation easements along the West Branch of the Penobscot River; the Royal River Coastal Estuary Project in Yarmouth; preservation of open space in Sebago; construction of the Kennebec River Rail Trail in Augusta; and protection of the forest around Mount Blue. Grants from the U.S. Environmental Protection Agency, along with state and local support, have been used to clean up brownfields and other contaminated sites in Maine that are now used for business, recreation, and other productive purposes.

Maine’s economic development has also been enhanced by numerous federal-state research and development grants provided to the University of Maine, the University of Southern Maine, the Gulf of Maine Research Institute, and other prominent institutions. The blossoming of our wood composite and boat-building niche industries, for example, as well as the viability of Maine’s signature agricultural products (lobsters, blueberries and potatoes) owe much to this funding.

This partial list of successes demonstrates how federal-state funding partnerships have helped Maine. But the list of unmet needs is also long. In many cases, a commitment of state money would again leverage significant federal funds. For example, the bond proposal seeks $18.5 million for wastewater construction and drinking water grants to assist water districts around the state; these funds would secure an additional $49.5 million in federal matching funds. Similarly, the $35.5 million to replenish Maine’s Land for Maine Future – the state’s fund for conservation purchases – and other important conservation efforts would be matched by nearly $21.9 million from other sources, mostly federal. State bonds totaling $26 million to support the Maine Department of Transportation improvements to ferry service, intermodal facilities, trails, aviation, transit, park and ride, passenger and freight rail and ports can be matched with almost $80 million from the federal government. The allocation of $100 million from the proposed bond package slated for the State Highway Fund and bridge projects can be matched with $177 million in federal funds. Additionally, a $10 million commitment to fund the University of Maine’s aquaculture and marine sciences research and development would be doubled by federal money.

To build prosperity in Maine, we need to build a better foundation for the future. That means investing in the infrastructure that drives a modern economy and making job creation and research and development a top priority. In an increasingly global economy, Maine is moving forward. An appropriate bond package, with its potential to secure additional federal funds at no additional cost to the state or local communities, can make Maine’s future brighter.

First District Rep. Tom Allen is a member of the House Budget Committee.