Maine Gov. Paul LePage vetoed one of five bond proposals approved by the Legislature and will let the other four go to state voters in November without his signature.
“While I have agreed to let some of the bonds go to the voters, their approval provides authorization to issue the bonds at sometime in the future,” the Republican governor said in his veto message. “As governor, I will not agree to issue them until we get our spending problem fully under control.”
Even if the voters authorize the bonds in November, LePage said his administration will not issue them until Maine’s debt is lowered significantly, which could take several years.
Earlier this month lawmakers approved five bond issues totaling $96 million, which would provide funding for projects involving transportation, drinking water, research and development, higher education, and a state land program.
LePage vetoed a $20 million bond sale that would fund research and development, saying he had issues with those specific bonds.
First, if Maine is going to use debt to pay operational costs, then they should reduce spending elsewhere in the budget and pay for the costs out of the general fund, he said.
Second, the majority of funds from bonds in the past have gone to government programs and not-for-profits.
“Taxpayer dollars should go towards R&D only when we can demonstrate a specific return on that investment,” LePage said. “That return must be measured in taxes and jobs. Both of those rightly come in the private sector.”
Democratic leaders in a statement called the governor’s veto “shortsighteded and bad for business.”
“The governor is shortchanging future job growth and innovation in our state. Investments in R&D have paid off. They boost business, create jobs, and help our fisherman, farmers and boat builders,” said Rep. Emily Caine, D-Orono, the House Democratic leader.
The governor also vetoed two other measures related to gaming opportunities for fraternal organizations and municipal bonding authority.
The vetoed bills will return to the Legislature on May 31, where a two-thirds vote would be required to override the vetoes.
On Thursday, Maine will issue $53 million of bonds that lawmakers and voters approved in previous years.
Moody’s Investors Service recently revised its outlook on Maine’s general obligation bonds to negative from stable, while Standard & Poor’s revised its outlook to stable from negative.
Moody’s and S&P rate the bonds at Aa2 and AA, respectively.
The bonds will be offered competitively and will be used to fund capital projects, such as road and bridge construction and repairs.
