AUGUSTA – Saying it’s time to create and sustain good-paying jobs – 2,000 of them in 2006 alone – Gov. John Baldacci outlined a proposal for nearly $200 million in new state borrowing Wednesday.
The package is intended to build jobs, protect the environment, improve higher education, refurbish downtowns and keep youth from leaving Maine, all while keeping the state’s debt burden below the national average, Baldacci said.
One of the initiatives in the package is $2 million for a career center at Lewiston-Auburn College and the potential for millions more coming to central and western Maine communities.
Among major provisions in the bond package are $50 million to buy and protect land, nearly $28 million for highways and bridges, and $22 million for a statewide biomedical research and development fund. Biomedical jobs pay $60,000 a year plus, Baldacci said.
“Today we have the opportunity to bring more good-paying jobs with benefits to every region of the state,” Baldacci said. “It’s time to invest in Maine. It’s time to invest in Maine’s future,” he said at a news conference.
The governor’s proposal will test relations between him, his Democratic allies and Republicans who refused last year to agree to a bond package.
It will be up the Legislature to decide whether to seek voter approval in June or November, Baldacci said.
The governor’s package proposes $10 million for building renovations evenly split between the University of Maine System and the Maine community colleges, and $10 million for wastewater disposal and other environmental priorities throughout the state.
In various areas, $9 million would go toward funding marine research and development and $5 million for research and development in forestry and agriculture.
Proposing $5 million for the New Century Community Program, Baldacci said the state would be investing in museums, libraries and theaters around the state.
Sen. Peggy Rotundo, a Lewiston Democrat and co-chair of the Appropriations Committee, described Baldacci’s proposal as “a wonderful bond package” that would well serve Lewiston-Auburn.
She said the Twin Cities would be strong candidates to compete and win grant money in a variety of areas, including transportation, improvements to art centers and museums, hospice programs, lead removal in homes and creation of walking and bicycle trails.
Rotundo was pleased that Baldacci earmarked $2 million for a new “Careers for Me” center at the L-A College, calling it “an exciting new initiative” to boost Androscoggin County’s percentage of adults that have four-year college degrees. Now, 16 percent of county residents have four-year degrees compared to the state average of 25 percent.
In the information economy, a four-year degree is essential, said L-A College teacher Jan Phillips. Working with schools, other colleges, businesses and workers, the center will try to remove barriers blocking some from a higher education, she said.
“This won’t be just for our students, but for all residents out there who could benefit” from a college degree “and have the American dream,” Phillips said.
Baldacci, asserting that Maine’s state debt per capita is 30 percent below the national average, described his bond package as flat-funding, because the amount of new borrowing is the same as the amount of debt the state will soon pay off.
Republican House leader David Bowles of Sanford said minority party lawmakers would not offer judgment right away. Instead, Republicans have assembled a committee to study borrowing levels.
“For Republicans, the bottom line is this: We don’t think it’s appropriate to look at bonds in a vacuum,” Bowles said.
Last week, Moody’s Investors Service said it had placed the state of Maine’s general obligation bond rating, currently rated Aa2 with a stable outlook, on its watch list for possible downgrading. Moody’s attributed its action to “persistent weakness in Maine’s financial position despite revenue and job recovery following the recession.”
Bond ratings can affect the cost of borrowing.
Baldacci expressed confidence Wednesday that Maine bonds will continue to be popular with investors on the market.
– Staff Writer Bonnie Washuk contributed to this report
Bond highlights:
n $78.85 million to bolster Maine jobs, including $2 million for new career center at L-A College
n $38 million for transportation: new bridges, harbor improvements, waterfronts, trails
n $50 million to preserve land
n $12 million for education, including $10 million to renovate buildings at all USM and community college campuses
n $16.5 million for clean water, the environment and health care initiatives
n $1 million for a statewide hospice initiative
n $1 million to improve Maine National Guard armories statewide
What: Bond proposal totaling $197.35 million
When: A public vote in June or November
Why: “Jobs,” says Gov. John Baldacci.
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