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ELLSWORTH — A
bleary-eyed Appropriations Committee emerged
from an all-night session at nearly 6 a.m. last
Saturday with a $5.8-billion biennium budget.
The Democrat
majority budget was approved in the
Appropriations Committee by an 8-5 vote along
party lines.
According to a
press release from Speaker of the House John
Richardson, Republicans agreed with more than 90
percent of the majority report.
“Ninety percent
of the Democrats’ majority budget was built by
unanimous votes and with support, contributions
and negotiations of every member of the
Appropriations Committee, and of all
leadership,” according to the Speaker’s report.
“In the end,
Republicans and Democrats were divided on only
about seven percent of the budget.”
Maybe so, but
disagreement on seven percent can bring plenty
of unhappiness.
Hancock County
Republican legislators contacted this week raged
against portions of the budget, as well as the
process that produced it.
Local Democrats
supported the budget package.
One major point
of contention involves a revenue bond, which
Democratic leadership increased from the $415
million initially proposed to $447 million.
The revenue
bond, which does not require a statewide voter
referendum, would be used to balance the
two-year budget.
Approximately
$120 million of the bond would be used to pay
down some of the state’s debt to the state
retirement system.
“The Democratic
budget is loaded with debt and taxes,” said
state Sen. Richard Rosen (R-Hancock
County). “The Democratic majority refused to compromise and now proposes to
borrow $447 million without voter approval,
violating the spirit of
Maine’s
constitution.
“This is an
historic moment,” said Rosen. “The Maine
Legislature has discovered deficit budgeting.”
Sen. Kevin Raye
(R-Washington
County) agrees with Rosen.
“I am opposed to
the $447-million revenue bond scheme that seeks
to circumvent the right of Maine’s voters to
approve bonds,” Raye said.
Raye criticized
the plan for supporting additional spending and
building debt in future years.
“If this plan
passes, more than seven percent of the state’s
general fund spending will be done with borrowed
money,” he said. “Funding general fund expenses
in this way is like running up your credit card
debt to buy groceries.”
Raye also
criticized the process that led to the latest
budget. He said the state budget is
traditionally passed in late April, May or even
June.
The budget, he
said, traditionally follows extensive
negotiation, collaboration and consensus
building to achieve two-thirds support.
“I am deeply
disappointed by the unilateral decision of the
majority Democratic leadership to impose an
artificial and arbitrary April 1 deadline....”
Sen. Dennis
Damon (D-Hancock
County) supports the budget package and believes paying down the retirement
system debt should be done again in the future.
“The
$447-million revenue bond is, among other
things, allowing us to pay down the unfunded
actuarial liability we have in our state
retirement system,” he said, adding that the
state would save $1.3 billion in interest
payments over the life of the debt.
Members of the
House responded in similar fashion.
Rep. Hannah
Pingree (D-North Haven) said the revenue bond
approach is preferable to the Governor’s
proposal to sell off $400 million in lottery
proceeds for $250 million in up-front cash.
“I still have
reservations,” she said. “To borrow for ongoing
spending is a concern.”
Pingree
acknowledged that the “leadership-driven”
process followed by the Appropriations Committee
can give the appearance of secrecy.
Rep. Earl
Bierman (R-Sorrento) is greatly displeased by
the process and the product.
“I don’t agree
with late-night sessions,” he said. “We try to
rush the process here.”
Bierman said
several parts of the budget bother him,
especially fees to register canoes and kayaks,
permits required for bird watchers and hikers
and a six-percent raise for state employees.
Regarding the
$447 million revenue bond, Bierman said, “It’s
tough to even talk about it. It’s like something
my son came up with.”
Rep. Bob
Crosthwaite (R-Ellsworth) also panned the
process and the product.
“I’m pretty
disillusioned with the whole system,” he said.
“A lot of decisions are made late at night with
no public hearings, whatsoever.”
Crosthwaite
calls the budget the “Governor’s re-election
budget” because it contains bragging rights he
will use during his campaign.
“It’s not
addressing the problem,” Crosthwaite said.
“We’re still in debt when it’s all said and
done. There’s just no will to cut spending.”
Rep. Ken Lindell
(R-Frankfort) was willing to support a
bipartisan proposal for a $415-million revenue
bond, but believes the Democrats have gone too
far.
“The bipartisan
plan was somewhat fiscally responsible,” he
said. “This inflates the state’s cash balance
with more than $50 million in borrowed revenue
that can be used for future spending with a
simple majority vote.
“This opens the
door to deficit borrowing.” |
