LePage turns down bond request
Gov. Paul LePage has decided against signing off on a $31 million bond sponsored by a quasi-state government entity that would have directed funds to schools and hospitals in Maine, citing a desire to have voters approve such bonds, administration officials say.
The Maine Health and Higher Education Facilities Authority handles the sale of tax-exempt bonds for educational and health care nonprofits, and had sought $31 million in bonds for Husson University, Fryeburg Academy, Colby College, York Hospital, Inland Hospital in Waterville and Franklin Memorial Hospital in Farmington, according to the Bangor Daily News. The authority earlier this month gave the bond package to LePage, who opted not to sign it because of concerns that the state would be obligated to repay the funds if the institutions and the agency are unable to. Bonds through quasi-government entities, including MaineHousing, include a "moral obligation" for the state to repay them, but not a legal obligation, Robert Lenna, MHHEFA executive director, told the paper.
However, state Treasurer Bruce Poliquin told the paper the governor "doesn't buy that," and expressed the administration's desire to have such bonds approved by voters. Traditionally, Maine residents have only voted on general obligation bonds. "The governor and I are very concerned about the voters having the chance to weigh in on any debt that they may be responsible for," Poliquin said.
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