Four bond proposals that would make needed investments in Maine’s colleges and universities, research and development, land conservation, and waste water and drinking water treatment gained initial support in the Maine House late this afternoon. Additional votes on these proposals and other public investments in improving roads and bridges are expected tonight.

Democrats urged strong support for the total $95.6 million in bond proposals before the House and Senate.

“A jobs bond will give our economy a much needed shot in the arm,” said Rep. Emily Cain, the House Democratic leader. “The best way to improve our economy is by making more investments that will help small businesses, job training and public education.”

Maine has lost more than 1,000 jobs since 2011 and was recently rated 50th for personal income growth according to the U.S. Bureau of Economic Analysis.

Earlier today, Republican lawmakers rejected two Democratic bond proposals that would have made investments in revitalizing Maine’s downtown communities and increased energy efficiency.

According to the non-partisan fiscal experts from the Legislature’s Office of Fiscal and Program Review, the state has the capacity to make public investment in a bond package for voters to approve. Debt service payments from 2013 to 2015 will decline by nearly $30 million, lowering the state’s payments on debt and increasing the capacity to borrow.

“It’s clear we can afford to invest in a jobs bond,” said Rep. Peggy Rotundo the lead House Democrat on the Appropriations committee. “If we don’t make these public investments now, we will be missing an opportunity to create jobs. Public investment will create jobs now and grow good-paying jobs for our future.”

The Association of General Contractors said the state lost 500 construction jobs from February to March this year alone, according to Department of Labor statistics.

Democrats support a comprehensive jobs bond, including public investment in roads, bridges and rail; research and development; educational infrastructure; water and wastewater treatment; and land conservation.

Maine has a track record of conservative bonding and has historically paid down its debt quickly. The state typically bonds for 10 years, not 20 or 30 as other states do. Debt service is typically between 4-7 percent of the General Fund.

Bonds require two-thirds support of the members present and voting to pass.

“Conserving Maine’s land and natural resources is an investment in today’s jobs and tomorrow’s prosperity for our children and grandchildren,” said Senator Roger Katz, a Republican from Augusta who sponsored the legislation. “Our natural resources are what set Maine apart – they are our biggest competitive advantage. Preserving and conserving them has got to be a top priority as we develop and grow. This is a value shared by families and businesses across the state.”

LMF has been extremely popular with voters, who have passed bonds in 1987, 1999, 2005, 2007, and 2010 by two-to-one margins. Since its inception, the LMF program has conserved land in each of Maine’s 16 counties, including working farms, commercial fishing waterfronts, timberland, and important tourism and recreation sites. Nearly 200 projects have been completed statewide, ensuring more than 500,000 acres of land remains open to the public for hunting, fishing, hiking, and other outdoor recreation.

“Land for Maine’s Future is an innovative method of conserving wildlife habitat and public access, as well as farming and fishing opportunities,” said Carole Dyer, a hunter from Bowdoinham. “Hunting supports 4,000 jobs, generates $217 million in retail sales, and over $81 million in salaries and wages. Investing in land that supports these activities is what LMF does.”

A recent study by the Trust for Public Land quantifies how these efforts have benefited the state’s long-term economic health in terms of both jobs and revenue. The report found that Maine’s natural resources support at least 62,000 jobs and generate billions in economic value for Maine businesses. It calculated that every $1 invested in land conservation through LMF returned $11 in natural goods and services to the Maine economy.

“This is an investment we’d be foolish to turn down,” stated Representative Jeff McCabe, a Democrat from Skowhegan. “LMF creates important new conservation and economic opportunities through partnerships with landowners, towns, and state agencies. Since it began, the LMF program has leveraged nearly $100 million in local, federal, and private matching funds. LMF is a win-win for Maine communities.”

“We’d all like to leave behind a fully-paid home to our children and grandchildren,” said Dave Ramsey, sportsman and President of the Brownville Snowmobile Club. “But that doesn’t happen overnight. It takes well-planned investing and a long-term commitment. And that’s what LMF is all about. Lawmakers can help us leave an important legacy to our families and communities by voting for the LMF bond and putting it on the ballot in November.”

A continuing economic focus for LMF will be its role in conserving wildlife habitat, including for white-tailed deer, a mainstay of Maine’s rural economy and way of life for at least the past 125 years. In 1996, Maine had 160,000 deer hunters, and they contributed $200 million to the economy of the state. Today there are fewer hunters and far fewer deer to enjoy.

“Investment in deer wintering areas today can help restore healthy deer numbers and also benefit countless other wildlife species in the northern half of Maine,” said David Trahan, Executive Director of the Sportsman’s Alliance of Maine and former Republican Senator from Waldoboro. “LMF guarantees that our outdoor heritage, the very thing that defines our state and makes it special, will be conserved and handed on to future generations.”

The LMF bond would also provide funds to help purchase development rights in order to preserve and protect key properties on the coast that provide access to and support commercial fisheries activities.

Melanee Osier-Gilbert, owner of Maine Fresh Lobster Inc. in Bremen, stated, “With six generations of the Osier family firmly attached to commercial fishing from this waterfront property, we believe that the Working Waterfront Access Protection Program not only preserves an important asset for our descendents and their neighbors in the community, but it also helps our present business invest capital into much needed improvements to the wharf and buildings, enhancing the twenty jobs that depend on access across this property.”

Katz added, “We owe it to Maine families and businesses across the state to send them a bond package that includes investments that protect the good jobs and good health that our natural resources provide to all of us. That package should include Land for Maine’s Future.”

The record of LMF projects shows it has helped establish and guarantee public access to thousands of acres and dozens of ponds, streams, lakes, and rivers for hunting, fishing, hiking, snowmobiling, biking, camping, and many other recreational pursuits. It has helped protect mountain summits, working forests and farms, salt marshes, and coastal shoreline.

Supporters of LMF cite the following examples of LMF’s positive impact on Maine’s economy and way of life:
• conserving 25 working farms – supporting family farmers producing dairy, vegetables, meat, and flowers;
• helping to conserve more than 250,000 acres of working forestland – guaranteeing continued sustainable forest management and public access for hunting, hiking, fishing, and many other uses;
• working with communities across the state to establish hundreds of miles of snowmobile trails, including critical links in the statewide snowmobile system that would be difficult to replace;
• protecting more than 1,000 miles of shorefront – guaranteeing access for canoeing, fishing, and boating;
• protecting coastal sites to ensure clammers and wormers have access to mud flats, ensuring their economic future;
• serving all Maine citizens and visitors – those who fish, hike, farm, raft, bike, boat, hunt, snowmobile, camp, and picnic; and
• leveraging nearly $100 million of local, federal, and private matching funds.

The Maine Land Bond Coalition is comprised of more than 350 supporting organizations, including sportsmen, business leaders, citizens, health organizations, conservationists, recreational enthusiasts, and environmentalists.

“These public investments will create jobs now and grow good-paying jobs for the future,” said Rep. Peggy Rotundo of Lewiston, the lead House Democrat on the committee. “The state could afford to do even more to create jobs but there was little political will from our Republican colleagues to do so.”

The governor has said he won’t sign any bond proposals if he doesn’t get his proposed changes to the outstanding budget for the Department of Health and Human Services for 2013.

The five separate proposals include $51,000 million for transportation improvements; $7.9 million for water and wastewater treatment; $20 million for research and development grants; and $5 million for the land conservation.

Republicans and Democrats split votes on an $11.3 million bond to improve higher education facilities and competitiveness. Democrats offered a proposal that would give an additional $3 million in funds to local campuses in the university system.

“Democrats think students at the local campuses from Aroostook to York should have the same opportunity to have improved laboratories and classrooms,” said Rep. John Martin, of Eagle Lake. “No campus should be shortchanged.”

The committee voted out five separate proposals, breaking with the traditional process for crafting one single bipartisan bond package for the Legislature to consider sending to voters.

“We are concerned that the separate vote will set-up one or more of the proposals to fail,” said Senator Dawn Hill, of York. “If all five bonds pass the Legislature, the Republicans have given the governor a menu of options to reject rather than a single bipartisan package that was negotiated in good faith that we could all stand behind.”

Hill added, “All five proposals will create jobs and give our economy the shot in the arm it desperately needs.”

Maine has lost more than 1,000 jobs since 2011 and was recently rated 50th for personal income growth according to the U.S. Bureau of Economic Analysis.

The Association of General Contractors said the state lost 500 construction jobs from February to March this year alone.

Fiscal experts from the Legislature’s Office of Fiscal and Program Review told lawmakers earlier this week that the state had the capacity to borrow more than $200 million in the next two years, paying debt service at a conservative levels of between 4-6 percent of the state’s two-year budget.

According to the fiscal office’s analysis, debt service payments from 2013 to 2015 will decline by nearly $30 million.

Maine has a history of paying down its debt quickly. The state typically bonds for 10 years, not 20 or 30 as other states do.

The bond proposals will now be considered by the full House and Senate and could still be amended by legislative leaders.

Democratic state lawmakers on the Appropriations and Financial Affairs Committee expressed strong support for a jobs bond package today following a briefing from fiscal experts on the state’s capacity to bond.

“A jobs bond will give our economy a much needed shot in the arm. We can’t continue delaying job creation,” said Sen. Dawn Hill, of York, who serves on the Appropriations committee. “In the last year, Maine people have seen a continued drain on our jobs and income. Responsible bonding is a sure-fire way to get people back to work immediately.”

Maine has lost more than 1,000 jobs since 2011 and was recently rated 50th for personal income growth according to the U.S. Bureau of Economic Analysis.Fiscal experts from the Legislature’s Office of Fiscal and Program Review told lawmakers that the state had the capacity to make public investment in a bond package for voters to approve.

“Before I can accept any bond proposal we must address the shortfall in the 2013 budget. Our welfare programs have become unaffordable and structural changes must be considered to reduce out of control spending,” said Gov.Paul LePage in a prepared statement.

According to the fiscal office’s analysis, debt service payments from 2013 to 2015 will decline by nearly $30 million, lowering the state’s payments on debt and increasing the capacity to borrow.

“It’s clear we can afford to invest in a jobs bond,” said Rep. Peggy Rotundo, of Lewiston, the lead House Democrat on the Appropriations committee. “If we don’t make these public investments now, we will be missing an opportunity to create jobs. Public investment will create jobs now and grow good-paying jobs for our future.”

The Association of General Contractors said the state lost 500 construction jobs from February to March this year alone, according to Department of Labor statistics.

“We have a great problem in Maine, it’s called an infrastructure deficit and every day we let it continue, we put our businesses and families at risk,” said Maine Better Transportation Association President Randy Mace. “It is not fair to leave this kind of debt to our children and grandchildren. Our citizens desperately need the jobs that a transportation bond will provide.”

MBTA represents 700 Maine business and transportation leaders statewide. Maine’s Department of Transportation estimates that 32 percent of the state’s major highways are rated “poor” or “unacceptable.”

According to the Maine Development Foundation’s Measures of Growth in Focus 2012 report, Maine is falling behind in its infrastructure investments to the tune of $150 million a year.

Democrats support a comprehensive jobs bond, including public investment in roads, bridges and rail; research and development; educational infrastructure; water and wastewater treatment; and land conservation.

Maine has a track record of conservative bonding and has historically paid down its debt quickly. The state typically bonds for 10 years, not 20 or 30 as other states do. Debt service is typically between 4-7 percent of the General Fund.

The Appropriations committee will continue to consider a bond package in the coming weeks.

The vote was along party-lines of 75 Republicans to 71 Democrats.

“This is among the worst affronts in a series of Republican attacks on working people this year,” said Rob Hunt, of Buxton, who serves on the Labor, Research and Economic Development Committee, where the bill was first considered.

The bill initially passed late today not only caps benefits for almost all injured workers at 10 years, even if their injury still prevents them from returning to work. It also makes it harder for injured workers to qualify for benefits.

“Nobody goes on workers comp to get rich,” said Rep. Anne Haskell, of Portland, “After 10 years, a permanent ailment doesn’t get better.”

The current law provides a safety net of benefits for severely injured employees who must deal with permanent loss of earnings. The system prevents workers who are injured on the job from suing their employers for negligence.

Tension flared during the debate as representatives shared personal stories of injuries.

Rep. Herbie Clark, of Millinocket, was severely injured on the job at the Great Northern Paper Mill and was unable to work for two years.

“What you’re doing today is unconscionable,” said Clark. “None of you have the gumption to stand up and protect the worker who earns a living.”

Rep. Mark Bryant,of Windham, who worked for Sappi Fine Paper Company for 20 years added, “I’ve seen the injured workers and they deserve better.”

Democrats also pointed out that the Maine’s Workers Compensation System has proven to work. Insurance premiums have declined 56 percent since 1993 when the system was first set-up while health insurance costs have been increasing.

In 2011, premiums decreased by 7 percent. According to the annual report for the Workers Compensation Board for 2012, the frequency of claims and injuries are down.

“Where will injured workers go when they stop receiving benefits and are unable to work?” asked Berry.”Many will be forced to general assistance, social security disability, or other taxpayer funded programs. Workplace injuries are fundamentally the responsibility of employers and these costs should not be shifted to the public.”

The bill faces more votes in the House and the Senate, which will likely take up the measure later tonight or tomorrow.

GoLocal of Providence RI also gave Portland top marks for its quality of life, economic prosperity and environment. The online magazine used sixteen criteria for its ranking of thirty New England cities, the five most populous of each state. The criteria included median household incomes, unemployment rates, crime statistics, public school qualities, weather, wifi hotspots and walkability.

“Portland’s unique quality of life continues to garner welcome national attention,” remarked Mayor Michael Brennan. “It’s pretty clear that our community values have helped shape a city that is diverse, unconventional and inviting. From the city’s creative economy to its vibrant food scene, Portland is earning its place on the map as a great community to live and work.”

A TABOR-like measure that raids Maine’s rainy day fund to provide tax cuts to the wealthiest Maine people passed the Maine House of Representatives by a narrow party-line vote of 74-71.

Democrats fought against what they described as irresponsible and unfair proposal, which failed in the House in a vote late last month. A new version of the bill, which was amended last week in the Senate, passed the House late on April 5th.

“Maine has rejected TABOR measures like this one three times before by increasing margins,” said Rep. Seth Berry,of Bowdoinham. “Republicans have now voted against the will of the Maine people and that fact will not be lost in November.”

An analysis by Maine Revenue Services shows the Republican TABOR bill, would give an average tax reduction of only $1 to the bottom 20 percent of income earners. Meanwhile, the tax cut would give an average reduction of over $21,000 to the wealthiest 1 percent of Maine residents.

Berry added, “This attempt to resurrect TABOR is fiscally irresponsible, unfair to the middle class, and hurts property tax payers and schools.”

After the House rejected the bill last week, the Senate resurrected it with a few minor adjustments, which apparently were enough for several lawmakers to switch their vote from no to yes. But these adjustments did nothing to change the fact that this bill will create a near-permanent budget crisis in order to pay for tax cuts that mostly benefit Maine’s wealthiest.

The bill, LD 849, would ratchet down state revenues by gradually lowering Maine’s income tax rates to a flat 4 percent, with 75 percent of the benefit going to the top 20 percent of taxpayers. Combined with the inevitable tax shift to property tax payers, LD 849 guarantees that low-income and working class Mainers will pay significantly more in state and local taxes.

Over time LD 849 will ratchet down State revenues by over $600 million per year. This likely means that an increasing share of the costs for education and other public services will be shifted to property taxpayers, municipalities, individuals, and businesses. Effectively, proponents leave the tough decisions about how to cut spending or find revenues from other sources in order to pay for this proposal to future Governors and Legislatures.

Maine people have voted against this kind of reckless budget policy on three separate occasions by voting down Taxpayer Bill of Rights (TABOR) and Palesky tax cap referenda.

The amended proposal uses 20 percent instead of 40 percent as originally proposed, of one-time surpluses that would typically be put in the state’s “rainy day” fund to make permanent cuts without paying for them in future years. The surplus only pays for the cuts in the first year.

In a floor speech during tonight’s debate, Rep. Bob Duchesne, of Hudson, who was critical in winning over Republicans in the prior House vote said the amended proposal was “just haggling.”

“Last week, the House declined to abandon fiscal responsibility and financial prudence by skimming 40% of the money intended for the Rainy Day Fund and long term obligations,” said Duchesne. “We wouldn’t compromise our principles for 40%…I say we hold out until they throw in a toaster oven.”

According to the nonpartisan fiscal office of the Maine Legislature, full implementation of LD 849 as written would cause losses to Maine schools, roads, bridges, and towns totaling over $1.2 billion per biennium.
“The whole point of this bill is to trigger budget crises in the future, putting the squeeze on the Appropriations Committee,” said Duchesne. “In each one of those crises, they’re not going to find it any easier to cut vital services than we have. Even if it passes, LD 849 will have the statutory shelf life of a ripe banana. Dead bill walking.”

The bill faces more votes in the House and Senate and also in the Appropriations and Financial Affairs Committee.