Dems urge “jobs bond” for economic shot in the arm

Fiscal reports show debt service payments decline by $30 million over three years, capacity for borrowing set to increase

AUGUSTA — Democratic state lawmakers on the Appropriations and Financial Affairs Committee expressed strong support for a jobs bond package today following a briefing from fiscal experts on the state’s capacity to bond.

“A jobs bond will give our economy a much needed shot in the arm. We can’t continue delaying job creation,” said Sen. Dawn Hill, D-York, who serves on the Appropriations committee. “In the last year, Maine people have seen a continued drain on our jobs and income. Responsible bonding is a sure-fire way to get people back to work immediately.”

Maine has lost more than 1,000 jobs since 2011 and was recently rated 50th for personal income growth according to the U.S. Bureau of Economic Analysis.

Fiscal experts from the Legislature’s Office of Fiscal and Program Review told lawmakers that the state had the capacity to make public investment in a bond package for voters to approve.

According to the fiscal office’s analysis, debt service payments from 2013 to 2015 will decline by nearly $30 million, lowering the state’s payments on debt and increasing the capacity to borrow.

“It’s clear we can afford to invest in a jobs bond,” said Rep. Peggy Rotundo, D-Lewiston, the lead House Democrat on the Appropriations committee. “If we don’t make these public investments now, we will be missing an opportunity to create jobs. Public investment will create jobs now and grow good-paying jobs for our future.”

The Association of General Contractors said the state lost 500 construction jobs from February to March this year alone, according to Department of Labor statistics.

Democrats support a comprehensive jobs bond, including public investment in roads, bridges and rail; research and development; educational infrastructure; water and wastewater treatment; and land conservation.

Maine has a track record of conservative bonding and has historically paid down its debt quickly. The state typically bonds for 10 years, not 20 or 30 as other states do. Debt service is typically between 4-7 percent of the General Fund.

The Appropriations committee will continue to consider a bond package in the coming weeks.