Baldacci breaks the bank ~ unveils $197M bond package

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Baldacci breaks the bank ~ unveils $197M bond package

Dave in Augusta, You ask what happened. The answer is very plain. The Federal Reserve happened and our federal government and every state government encorporated. Crazyfemaledoctors can do business as private corporations without worrying about the people.

Baldacci breaks the bank ~ unveils $197M bond package

Baldacci unveils $197M bond package
Thursday, February 10, 2005 - Bangor Daily News AUGUSTA - Declaring that much-needed infrastructure improvements are vital to ensuring Maine's competitive edge, Gov. John E. Baldacci unveiled a $197 million bond package for the state's next two-year budget cycle Wednesday and urged lawmakers to support the borrowing proposal. "This bond package will create good-paying jobs with benefits and grow Maine's economy," the governor said. "It's fiscally sound. It's equal to the amount of principal being retired by the end of the (next two-year budget cycle), and it's well within the state's five percent debt-to-revenue goal."
Baldacci said his bond package would leverage more than $250 million in federal and private matching funds to deliver a punch to the state's economy valued at nearly a half-billion dollars."A half-billion in construction, real estate, finance, research and engineering will create and sustain more than 2,000 jobs in 2006 alone," he said.Reasoning that Maine will retire about the same amount of debt over the next 29 months, Baldacci said the package would not adversely impact the state's borrowing profile. Maine's debt-per-capita is already 30 percent lower than the national average."Our future is bright and we have made significant progress," he said. "This bond package will continue strategic, targeted investments that will keep Maine on the path to becoming a national leader in providing opportunities for all of its citizens."Job creation programs ate up the largest segment of the seven-tiered borrowing plan at $78.85 million, followed by $50 million for the Land for Maine's Future Program, $38 million for transportation projects, $16.5 million for clean water, environmental and health initiatives, $12 million for education, $1 million for a new statewide hospice program and $1 million for homeland security to make improvements at the Maine National Guard Armory.The proposal was particularly welcomed by University of Maine System Chancellor Joseph W. Westphal, who said $25 million of the bond package would have positive implications for several system programs including biomedical research and development at the University of Maine and the University of Southern Maine."The bond package recognizes the tremendous success and potential of the three-way partnership between the university system, the state and the private sector," Westphal said. "Maine knows from experience that investment in university-based research produces jobs and economic growth."Democrats at the State House were supportive of the governor's proposal while Republicans remained circumspect in their reaction.Republican leaders indicated last week they would be more likely to support a bond package in the $130 million range.But any support from the GOP is a huge improvement for Baldacci. Last year, Republicans rejected a November bond package in retaliation for a Baldacci-backed majority supplemental budget. Any state bonding proposal must receive a two-thirds vote in the House and Senate before it can be sent out to the voters.Senate GOP Leader Paul Davis, of Sangerville, and Assistant Senate Republican Leader Carol Weston of Montville agreed that more must be done to reduce state spending before launching into a new plan for borrowing more money. When factoring in all of Maine's outstanding debt, Republicans maintain the state currently owes more than $5 billion including all debts and unfunded liabilities."We don't think it's appropriate to look at bonds in a vacuum," said House GOP Leader David Bowles, of Sanford.To that end, Republicans have formed a working group consisting of some of the GOP's best economic analysts in the Legislature to evaluate Baldacci's proposal. The panel includes Sen. Richard Rosen of Bucksport, Sen. Peter Mills of Skowhegan, and Rep. Sawin H. Millett, a Waterford resident who served as Gov. John R. McKernan's chief of finance.Republicans are very concerned over last week's announcement by Moody's Investors Service declaring Maine had been placed on a "watchlist" for a possible downgrading of its bond rating.Should the Wall Street firm reclassify the state's financial status, Maine would be forced to pay a higher interest rate for any new debt assumed during the next two-year budget cycle, which begins July 1.Moody's was particularly concerned over what it described as the "persistent weakness in Maine's financial position despite revenue and job recovery." The firm also said the state must do more to replenish its depleted reserve accounts designed to help Maine weather the next economic downturn.Baldacci said he and members of his administration were working with Moody's to provide the firm with more information in hope of reaching some agreement that could stave off any downgrade.

Thomas O
Last seen: 11 years 2 months ago
Joined: 09/20/2003 - 12:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

It's a great time to risk higher interest on a couple hundred mil---my life for you, John!

Last seen: 2 years 5 months ago
Joined: 01/08/2003 - 1:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

The state's in huge debt - so his answer is to
Borrow MORE Money????[i]I know this is a stupid question...[/i] Don't Democrats ever, EVER consider spending cuts?Not Caps,
Not Limits,
Not Plans,
Not Guidelines... [i][b]Real CUTS???[/b][/i]

Hadley E. Smith
Last seen: 4 years 8 months ago
Joined: 05/17/2003 - 12:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

Remember that Mr. Baldacci also proposes to borrow $250 million from some retirement system or other to meet the 55% school funding requirement. The real figure is $447 million.The GOP should loudly and adamantly oppose both of these borrowing proposals which, if passed, have the effect of increasing the budget with borrowed money and avoiding the spending cap.[ 02-10-2005: Message edited by: Hadley E. Smith ]

Dave in NY
Last seen: 6 years 8 months ago
Joined: 09/29/2003 - 12:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

In a related frame of thought (borrowed from mail someone forwarded to me). Some good hmmm-generating material...TAXESAccounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines
(indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax
(42 cents per gallon)
Hunting License Tax
Inheritance Tax Interest expense
(tax on the money)
Inventory tax IRS Interest Charges
(tax on top of tax)
IRS Penalties
(tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
Road Usage Taxes
Sales Taxes
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Income Tax
State Unemployment Tax
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and
local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines
(indirect taxation)
Trailer registration tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft registration Tax
Well Permit Tax
Workers Compensation TaxCOMMENTS:Not one of these taxes existed 100 years ago and our nation was the most
prosperous in the world, had absolutely no national debt, had the
largest middle class in the world and Mom stayed home to raise the kids.What the hell happened !!!!!!!!!

Doug Thomas
Last seen: 4 years 6 months ago
Joined: 08/29/1999 - 12:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

If somehow we could get an accurate accounting of what is really owed by the State of Maine it would scare us to death. A few approximates no one wants to talk about:
Government Facilities Authority $200,000,000
Unfunded Retirement Liability $3,000,000,000
Unfunded Retiree Health Insurance $1,200,000,000
Hospital Medicaid Payables $200,000,000Then there's Maine State Housing
School Constuction Bonds
Etc, Etc, EtcPeter Mills has written a paper "A Broader View of Maine's Public Debt Background" in which he estimates "the total spent on debt is much closer to 17% of annual revenue" than the 4% the Governor talks about.

Last seen: 8 years 11 months ago
Joined: 08/19/2004 - 12:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

I would like to know one thing from our flatulent head of state who emits gas that increases our state's wealth daily, when someone lights a match, are we going to implode or explode?

Last seen: 9 years 11 months ago
Joined: 02/16/2004 - 1:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

Baldacci, and corrupt socialists like him, don't care that they're selling out our children's future with their insane borrowing measures. If anything, it is part of their intention, for if our heirs are indebted by his corruption, they will be forced to rely on government for survival, because to pay off the interest on the debts all of their income will be confiscated by Moscow... I mean, Augusta.Too many voters aren't going to get the message until the system collapses and they are starving to death because the government they've become indentured to will no longer be able to supply them with the welfare funds via "bond packages."

Mike G
Last seen: 8 hours 7 min ago
Joined: 02/17/2000 - 1:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

Can't understand how borrowing 50 mil for taking land out of production is going to stimulate jobs?The remainder is less bogus then that one.

Michelle Anderson
Last seen: 2 years 11 months ago
Joined: 11/03/2003 - 1:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

The saddest part of this whole story is that Maine voters will quite likely vote this in. :(

Last seen: 9 years 11 months ago
Joined: 02/16/2004 - 1:01am
Re: Baldacci breaks the bank ~ unveils $197M bond package

Maybe we should use liberal scare tactics leading up to the vote, tell the people that their children will be starving to death and marched into ovens if they vote for the bond issue. Hey, it's worked for the Dems in this state for half a century. Why don't we give it a shot?

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