Details emerge for plan to replenish rainy day fund
Gov. Paul LePage plans to use unspent education funds and savings in an account for state employees’ health insurance to restore the state’s rainy day fund, according to Democratic leaders briefed on the proposal.
The Portland Press Herald reported Democrats expressed no immediate opposition to the plan that seeks to restore $21 million taken from the state reserve fund to curtail $40 million in cuts to state aid to cities and towns. After lawmakers approved that bill, LePage expressed opposition to drawing down the state’s rainy day fund, saying it would harm Maine’s credit rating and that he would not approve additional voter-approved bond projects until the fund is restored.
The newspaper reported the bonds held up in the process included $33 million in transportation and infrastructure projects, including $17 million that would, in part, benefit port facilities. It remains unclear how much of the education fund, which stands at $13.5 million, and health insurance savings account would be tapped to refill the rainy day fund.
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