$57.8M bond package approved
The Legislature yesterday approved a $57.8 million bond package that will now go before voters in June.
The renegotiated package, which was originally $85 million, was approved by the Senate with a 30-5 vote and achieved the two-thirds majority in a House roll call vote, 102-44, to gain passage, according to the Kennebec Journal. Gov. John Baldacci signed the bond package last night. The package includes $24.8 million for highways, $16 million for railroads, $7 million for the Ocean Gateway International Marine Terminal mega berth in Portland and other small harbor improvements, $5 million for ocean wind energy, and $5 million for improved dental services.
The package also includes funds to allow the state to purchase 240 miles of rail line owned by the Montreal, Maine & Atlantic Railway in Aroostook County. The state would borrow $7 million and take $7 million from the state's rainy day fund to purchase the rail lines, and 20 or so shippers who use the lines will be asked to contribute $3 million. Not included is $12 million for energy efficiency that was originally proposed, in part because nearly $9 million in federal stimulus money is expected.
Legislators were concerned that taking money out of the state's reserves would hurt its bond rating, according to Capitol News Service. Last month, Standard & Poor's Rating Service downgraded the state's bond outlook to negative, in part over concerns about its cash reserves. But lawmakers said a provision that earmarks the first $7 million in extra money for the rainy day fund should satisfy the rating service and prevent the state's credit rating from being lowered.
Go to the article from the Kennebec Journal >>
Go to the article from Capitol News Service >>
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