EXPERTS, POLICYMAKERS AGREE: MAINE NEEDS COMPREHENSIVE BOND PROPOSALS

Effective bond proposals should include research and development, education, infrastructure investments

AUGUSTA—Economic, policy, and business experts testifying before the Appropriations Committee today agreed that the Legislature’s bond proposals must provide funding for research and development, education, and infrastructure improvements to strengthen Maine’s economy, create jobs, and invest in our workforce.

Dr. Charlie Colgan, Maine’s former state economist and current policy expert and economist with the Maine Center for Business and Economic Research at the Muskie School, testified before the committee.

When asked about the timing and types of bond proposals, Dr. Colgan replied, “Now is the time for a broad bonding package to provide the tools to grow our economy. We need more [bonding] sooner.”

During the legislative session there were 33 bond proposals sponsored by Democrats and Republicans addressing issues such as infrastructure, higher education, research and development, and workforce needs. The Appropriations committee is meeting to determine which bond proposals will be recommended for voter approval.

Dr. Colgan added, “It’s the people [in our state] that are critical to the innovation-economy. The one thing we lag behind is the STEM [Science, Technology, Engineering, and Math] workforce. It’s good to build buildings, but it’s the people in them that make the difference. They are the ones who innovate. We need to put as much emphasis on the people-side as we do the building-side.”

Colgan addressed the state’s capacity to borrow by noting that the state is “substantially below the debt per capita compared to the rest of the country. Now is a once in a lifetime opportunity to take advantage of low interest rates. We are not likely to see these interest rates again soon and now is the time to take advantage of the unique circumstances.”

Ryan Low, an official from the University of Maine System, testified about the university system’s “growing backlog” of deteriorating buildings and facilities, citing, “We are going in the wrong direction–nearly 70 percent of the university space has a renovation age of more than 25 years.”

Low added, “Investment is critical. Strategic investments and upgrades lower operating costs” which ultimately impacts taxpayer and tuition dollars.

A number of other higher education officials spoke including Maine Maritime Academy’s President, Dr. William J. Brennan and Gary Crocker from Maine’s Community College System.

Crocker noted, “a bond for community colleges is a triple win for Maine: Our graduates will be put to work as carpenters, welders, plumbers, and electricians; it will renovate existing facilities and construct new space needed to help meet the unmet demand for skilled workers and give us the critical classroom space to enroll an additional 2,400 students; and, by having these facilities we can meet the demand for skilled workers of the future, in turn providing qualified graduates to fill job openings resulting from retirements.”

Other speakers included Ron Phillips, President of CEI, a private, non-profit economic development organization focusing on business funding, development, and financing. Philips advocated for the need to have proper investments that will stimulate job creation and business growth, including in areas like micro-businesses.

Marc Cyr, the lead analyst from the non-partisan Office of Financial and Program Review, also testified before the committee. He told lawmakers that the state could afford a robust bonding package.

Cyr also told lawmakers that the Maine DOT had $57 million in unspent voter-approved bonding dollars still pending action from authorized bonds, of which $41 million is flexible or could be spent on unspecified highway and bridge projects.

“Today’s conversation is a continuation of what we know—our economy is lagging behind much of the country and we have solutions presented before us. We heard economic and policy experts tell us that for our state to recover and become competitive, we need a balanced and comprehensive approach,” said Senator Dawn Hill of York, the Senate Chair of the Appropriations Committee. “It was disappointing that no one from the Department of Transportation appeared before our committee to answer critical questions, especially as the Governor and Commissioner Bernhardt are sounding the alarm in the media about the new and immediate need for a transportation bond.”

In the weeks before the Legislature adjourned, Appropriations committee chairs said on the record that the committee would return in August to consider a bond proposal for the Legislature’s vote in September.

Hill added, “We remain on track to fulfilling our commitment to the people of Maine and we look forward to continuing that work in the weeks that follow. ”

LePage has prevented the investment of $296 million in state and federal dollars into Maine’s economy for more than 796 days. Voters approved the bonds more than two and half years ago in November 2010 and again in November 2012.

A letter from State Treasurer Neria Douglass wrote in a letter to the committee stating that $70 million dollars in voter approved-bonds were approved by the Governor in recent weeks. $35 million voter-approved bonding projects are still outstanding, including $15 million for transportation projects.

No one from the Department of Transportation or representatives from within the transportation industry attended the Appropriations’ bond work session.

DOT officials had previously told lawmakers that the department’s work plan could move forward if a bond proposal had appeared on the June 2014 ballot.

“It is frustrating and challenging to do our work when the administration is unwilling to cooperate, refuses to appear before our committee, and provides conflicting information to the media,” said Peggy Rotundo, D-Lewiston, the House Chair of the Appropriations Committee. “While we heard from experts and industry leaders today about how important a strong investment package is for Maine’s economy, the administration was silent.”

The Appropriations and Financial Affairs Committee is expected to make recommendations on bond proposals for the full Legislature in the coming weeks.

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