AUGUSTA — After swearing off bonds for the first time in two decades last year, Maine lawmakers are hoping the state can resume borrowing for road, bridge and research and development projects. 

However, lawmakers will have to plug the projected $220 million shortfall at the Department of Health and Human Services before Gov. Paul LePage will entertain increasing the state’s debt limit.

“Right now, until the Legislature fixes the shortfall at DHHS and the budget, I’m not contemplating (bonding) anything,” LePage said Friday. “First things first. Let’s fix the hole and then we’ll talk bonds.” 

The Maine Constitution mandates that the state have a balanced budget. LePage, who must sign off on state borrowing before sending a proposal to voters, was asked what size bond package he’d consider, assuming lawmakers meet their constitutional requirement. 

“I haven’t given it any thought because I am 100 percent energized at solving the budget shortfall,” LePage said.

The Legislature typically drafts and debates bond packages late in the session. None was considered in 2011, even though borrowing rates are at historic lows. 

Democrats were critical of the administration’s no-bond position, arguing that infrastructure spending would create jobs and move the state forward with badly needed road and bridge improvements.

House Minority Leader Emily Cain, D-Orono, said “targeted public investment” was important to fix Maine’s roads and support research and development. 

“This will create jobs in the short term and boost our economy for the long run,” Cain said in a statement. “We believe the Republicans left jobs on the table by not making those needed investments a priority in 2011. We are ready to work with Republicans to send a bond to the voters as early as this June to give our economy a much-needed boost.”

Senate President Kevin Raye, R-Perry, said he was hopeful that the state could take advantage of low interest rates this year. Raye declined to discuss the size of a bond package, but said it would be “modest, responsible” spending that addressed infrastructure needs and potentially some research and development projects.

Raye acknowledged that the state needed infrastructure upgrades last year. However, he noted that the governor established from the outset that he wouldn’t support any borrowing.

“I think we were focused on reducing the size of the state’s debt,” said Raye, adding that pension reform and other initiatives put the state in a better position to expand its debt limit.

Any spending package would have to be approved by voters. From past years, voters have authorized $96.5 million in borrowing that has yet to be issued and used by the state.

According to the state Treasury website, Maine’s tax-supported, per-capita debt is $865. The national median is $1,066.

According to Moody’s rating agency, Maine’s tax-supported debt as a percentage of personal income is 2.4 percent. The national median is 2.8 percent.

LePage has long been critical of state borrowing. The governor frequently railed against Democrats’ aggressive pursuit of bonds during their control of the Blaine House and the Legislature. 

Last year was the first time in 20 years that the Legislature did not send a bond proposal to voters. 

Several bonding proposals introduced last session were carried over to this year. Those proposals, which contained spending for road, bridge and sewer projects, could be the starting point of a potential spending package. 

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