LePage: No bonds until reserve reaches $60M
Gov. Paul LePage told the state’s treasurer in an email Wednesday he would not approve state borrowing to replenish around $52 million in cash already spent on approved bond projects until the state’s rainy day fund stands at $60 million, out of concern for the state’s credit rating.
The conflict comes as lawmakers sent a bill to the governor’s desk that would tap into $21 million from the rainy day fund, bringing it down to $38 million, in order to stave off $40 million in cuts to state aid to cities and towns. That bill passed both chambers of the Legislature with veto-proof majorities, but it’s not clear if the measure would gain the same support following a gubernatorial veto. At press time, LePage had not taken action on the bill and a request for comment from the governor’s office was not immediately returned.
LePage’s statement that he would not approve more bonds until the rainy day fund reached $60 million came to light in an email exchange with State Treasurer Neria Douglass, part of which was sent to reporters by a spokeswoman for Democratic Senate President Justin Alfond. Mainebiz obtained the full email exchanges from Douglass. In an email Thursday, Douglass told the governor she doubted the state would be able to get back money already issued to entities outside of the state government.
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