Last week, Maine’s legislature failed to use the opportunity to right some wrongs and put forth a set of solid fiduciary – not arbitrary – reasons to withhold the issuance of voter-ratified bonds.
If you haven’t been following this issue, Maine’s chief executive was withholding voter-ratified bonds from being sold in exchange for approval of wholly unrelated policy initiatives, including paying back Maine’s hospitals in 2013 and increasing the timber harvest on state-owned lands currently. In both instances, it was made public that these bonds were not being held for reasons pertaining to the state’s fiscal health, rather as political leverage.
The fiduciary criteria that L.D. 1378 put forth for the non-issuance of general obligation bonds include: the debt service being greater than initially budgeted, an adverse impact on our credit rating, by holding out Maine’s people could get a more advantageous interest rate, the project was not proceeding, or alternate funding was available. All were arguably good reasons. Had anyone wanted additional criteria, it was certainly within their ability to add it through the amendment process.
So what do we have today?
• Uncertainty that Maine’s government will follow the voters’ will with regard to general obligation bonds.
• Uncertainty in our entire bonding process as we’ve chosen politics and leverage over conducting our work in a fair-minded, businesslike manner. In fact, Standard & Poor’s lists “political stability and pressures” as one of their principal analytical considerations when rating government issuers of bonds.
• Uncertainty for approved Land For Maine’s Future projects, the people who put many volunteer hours into them, and the donors – people who give their treasure for Maine’s people – who are generally an integral part of the funding equation.
I based my decision on Article I, Section 2, of the Maine Constitution. It reads:
“Power inherent in people. All power is inherent in the people; all free governments are founded in their authority and instituted for their benefit; they have therefore an unalienable and indefeasible right to institute government, and to alter, reform, or totally change the same, when their safety and happiness require it.”
I find it worthy of mention that “power inherent in (Maine’s) people” is found in our Constitution plainly before those powers granted to the government. As an elected official, I will never view the people’s power as a roadblock intended to be driven around.?? Though, not always perfect, the Legislature has the “….full power to make and establish all reasonable laws and regulations for the defense and benefit of the people of this State…” as written in our State Constitution. Generally, the need for alterations in our laws and regulations are inspired by times when they’ve been exploited or an unforeseen consequence reveals itself.
Maine’s voters have time and time again decidedly voted in favor of LMF bonds, therefore this issue should be treated as such…the will of the people. When we set the precedent that the “will of the people” is something with which we are willing to bargain legislatively, where do we go from there? Voter-ratified economic development bonds in exchange for Medicaid expansion or raising the minimum wage? Democrats, Republicans, and unenrolleds should all agree that these types of politics should be considered to be bottom of the barrel. I shutter when thinking about it.
Before being vetoed L.D. 1378 – a bill about good governance – enjoyed wide bi-partisan support. In fact, the veto was overridden in the Senate and was sustained by a narrow margin in the House, which is surprising considering that it received a two-thirds vote initially in the House.
I tirelessly wrestle with these issues during the day so that I can sleep at night. With a few nights to sleep on the decision I made last week to override the veto of L.D. 1378, or really any of the decisions I made this session, I can and will hold my head high because I’ve always chosen Maine’s and Windham’s people over politics.
State Rep. Patrick Corey is a Republican representing District 25, part of Windham.
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