SKOWHEGAN, Maine — A state legislator says Gov. Paul LePage is holding Skowhegan hostage through his refusal to release voter-approved bond money.
Rep. Jeff McCabe, D-Skowhegan, sent a letter to LePage on July 12, urging him to issue a $3.5 million bond as part of the revitalization effort for downtown Skowhegan. The Communities for Maine’s Future bond, which was passed by the Legislature in 2009, was approved by voters in 2010.
“The governor is ignoring the will of the people and holding our local economy hostage,” McCabe said in a statement Friday. “These shovel-ready projects put money into the hands of local contractors and will help employ people in our area.”
The Communities for Maine’s Future program funds are awarded on a competitive basis and require applying towns to provide a 100 percent match for the project, according to McCabe.
“At the time of your unexpected announcement to halt the voter-approved bond authorizations, the town was about to put the construction contract out to bid,” McCabe said in his letter to LePage. “The project is now on indefinite hold and Skowhegan is unable to move forward.
“Delaying this project further will only increase its cost and delay the creation of needed jobs,” continued McCabe.
In a handwritten letter responding to McCabe’s request, LePage said he’s halting the bonds in order to better Maine’s financial position.
“I am working toward keeping and possibly elevating our credit rating. We have been warned that unless we take steps to pay our bills, we will likely lose our current rating, which is less than stellar,” LePage said in the letter, dated July 14. “As soon as fiscally prudent, we will sell the bonds. The town can sell bonds to complete the project and the state could provide the funds at some later time.”
McCabe said LePage’s solution was unacceptable.
“He’s asking the taxpayers of Skowhegan to float the state a loan for a commitment the state has already made with no timeline to pay us back,” he said.
McCabe said the town of Skowhegan signed contracts with the Department of Economic and Community Development in 2010, and began the renovation process of the downtown area. The town spent nearly $40,000 and has entered into contracts and agreements to secure funding for its portion of the project.
Other towns — such as Bath, Belfast, Dover-Foxcroft, Eastport, Livermore Falls, Monmouth, Norway, Rockland, Unity and Winthrop — have been denied funds to support job creation through grants, he said.
“It is senseless choices like these that have put Maine’s economy in a backslide,” said McCabe. “The small businesses and middle class families in Skowhegan and towns like ours across the state are counting on their Main Streets. We should be supporting our local economies, not stunting them.”
Adrienne Bennett, press secretary for LePage, reiterated LePage’s stance on lowering the state’s debt.
“The governor believes that in dealing with the state’s financial situation, we must prioritize our spending,” Bennett said Friday. “He recognizes that this might create a hardship for projects that may be worthwhile. He encourages towns to pursue these projects without debt to the Maine taxpayer.”
So, we can’t afford what we have, and some want to borrow more? Lower bond rating = higer %. Some will try anything to score political points. The Governor is doing this legally. If the good Representative doesn’t like it, then he should submit a bill to change the law. There isn’t much rocket science in this one.
We need to create jobs and to improve our cities and towns. We need to invest in Maine. Only government can focus our tax dollars in a way that creates an inviroment that moves us in a positive direction. The money being witheld is much needed now.
LePage is a job killer. We can afford what we have and need to invest in our future so that our kids will have what they need. How much revenue have we lost in tax cuts to the wealthy or in Republican speak the job creators? Get positive. Move forward.
Government doesn’t create productive, permanent jobs. Those are the ones we need, not another highway improvement that stimulates the immediate area for 18 months, then moves on to another state.
If you stimulate the economy for 18 months by building infrastructure that will stimulate other sectors of the economy. How, you say?
For 18 months you have more people working earning more money. They are going to spend that additional money on purchasing items they need/want. Those items will have to be manufactured causing those businesses to hire more workers who will, in turn buy more items creating more jobs.
That is actually how jobs are created, not by giving tax cuts to the “job creators” so that they can put the additional moneyinto banks in the Cayman Islands or buying villas in France.
“Only government can focus our tax dollars in a way that creates an inviroment that moves us in a positive direction.”That kind of ideology is what got us in the situation we are in today.
No, the “give tax cuts to the ‘job creators'” ideology is what got us to this point.
This bond issue was approved by the legislature and approved by the citizens of Maine. I suppose you approve of a governor who will not follow legally authorized bonds approved by the citizens.
see my original post.
….
“These bonds were voted on and passed by the voters of this state.”
We all know and understand this worn out argument. But you and the trumpeters of this fail to take into account that every single dollar of revenue that Maine has is spoken for and then some. There are no excess funds. How then will Maine pay these bonds back with no revenue to do so? Governor LePage is doing what no one before him has dared to do, he’s saying no and I think it is sensible and reasonable to get your financial house in order before you borrow more. For all of you out there with significant credit card debt, you know what I am talking about.
I paid Off all my Credit Card debt, but I am not an economy all unto myself.
Anyone who thinks that an Government is the Same as an Individual has absolutely NO concept of what an economy really is!
An economy relies on the “Movement” of money not the hoarding or saving of it!
Lepage and his Band of Miscreants either have NO concept of what an economy is as they continually speak of it as only one s segment frozen in Time or they know perfectly well what they are doing and are punishing alot for a few.
Hence the over use of the term (Job Creators)!
Job Creators are nothing without customers, and customers need good paying jobs, so a balance is needed and that balance can be made with Government intervention, Taxing the hoarders and priming the pump so that the middle class can flourish once again. Stimulus can do this but when it is all absorbed and filtered back up to the top because of outsourcing to foriegn countries for the benefit of a few, and by control of wages through deprivation by competeing wages in third world dictatorships.
Lepages Policies are like shuting off the water to the community garden during a drought so that the well won’t go dry!
Great for the well owner,
disasterous for the citezens that need to eat!
Mostly Dlbrt, you make no sense. You rant as well or better than most but in all of those words, you say nothing at all. I know what an economy is, do you? While you and your band of left whacko thinkers believe that we must borrow our way to prosperity, you never ever think of how the borrowing will be paid for. And, then you complain that Bush created this huge deficit but that it is okay for Obama to borrow all that he wants. You complain of the “hoarders” of cash but most of them saved that money with hard work and a conservative lifestyle. You and your band of liberal thinkers wish to “take” all of that money by taxing those rich good for nothing jerks and spending it to create what? What jobs will be created that will still be here after the money runs out? Think, for once in your life, think!!
Ten years of giving tax cuts to the “job creators” has resulted in very few jobs being created but those “job creators” have increased their wealth immensely.
Look up the paradox of thift!
If we where ALL conservatives we would all be be living in caves in loin cloths strokeing a little gold ring mumbling (My Precioussssss!)
LOL
…..
You are correct. Austerity does not create revenue…..but it does prevent default
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I don’t know if you noticed, but those austerity measures in Europe were only put in place after those socialized economies were in the midst of collaspe, unable to pay their bills and seeking bailouts to prevent total default. You think the right answer was to spend more? No, the answer was to be fiscally responsible a decade ago so they wouldn’t have gotten into that situation.
…..
Austerity may prevent default or it may not.
Austerity can and does cause the situation to deteriorate.
I guess then we will have to be satisfied that we will continue to bore each other with worn out arguments.
This rabid state legislator should be aware that in the last
administration, the Maine Maritime Academy spent is share of the
education bond on a $1.6 million 6 acre estate for its president to call
home and to wine and dine it’s connected supporters. Lepage is doing
the right thing.
WE ARE BROKE. Well that’s what the tea party parrots keep telling us. Of course we weren’t so broke that we couldn’t come up with $300k for a study for a private road or $850,000 for a new boat ramp in Ellsworth.
Or a tax cut for the truly needy 1%… Paid for with money taken from retirees. With friends and neighbors like this, I don’t need thieves..,
Notice how McCabe, a Democrat, is concerned about middle class Mainers,that is people who work for a living in Maine, and not just the welfare class most Democrats focus all their attentions upon
Rep. Jeff McCabe,at some point, will be a Maine Governor someday
-SkowR
————–
Really… who would have thought!!!!
Democrats represent the middle class much more than the “cut taxes for the ‘job creators’ and cut spending for the needy” Republicans.
Between Pingree and McCabe it’s gonna be a dead even heat at the Caucus. But since Angus is out of the running, and Charlie’s seriously out of GOP Candidate’s considering the last election’s GOP-inspired result’s, a moderate and fiscally responsible, Democrat is gonna be a huge improvement.
I’am sick of angry Republicans,many of them are just plain angry people that like to fight and argue for the sake of fighting and arguing
Jeff, You are right. I should live beyond my income means and expect others to pay for it. I am all for jobs but they need to be supported by NOT borrowing money we dont have.
Everyone borrows money that they don’t have. If they had it, they wouldn’t borrow it. This borrowing has been authorized by Maine voters. To not go ahead with these projects is criminal.
But paying it back in a timely manner with money not appropriated and we may not have, is a problem.
Do you really take out loans and don’t make payments?
When Maine’s roads and bridges are no longer capable of moving your businesses products, how are you going to feel then?
You need to be able to have money set aside to pay it back before you borrow. It needs to be in the budget. Its really dumb to borrow before you know how to pay it back.
Every Administration prior to the LePage Administration has had no issue repaying all Bonds taken out by the People.
Is the LePage Administration incapable of making payments on time?
Yes , he is incapable!
He has to pay his rich constitutency back for the Campaign Funding first!
So, you paid cash for your trailer?
Brilliant!
So we should Borrow Money that we DO have!
Absolutely %^%^@* Brilliant!!!!!!!!!!!!!!!!!!!
You do need a plan on how the borrowing is to be paid back so explain how that will happen given that Maine’s budget is always underfunded and in need of cuts.
“Maine’s budget is always underfunded and in need of cuts”
You do need a plan on how the borrowing is to be paid back
Its call Tax!
There, now we know what the liberal left is all about, TAX!!
infantile response.
All government income is a tax, even if the Republican’s support it.
Yes, it doesn’t frighten us!
We actually believe in ” paying “our bills!
You know ———–Individual Responsibility?
Accusations of holding people hostage yet much ado about calling the IRS Gestapo. I don’t seem the freaking difference.
It was holding the ‘economy’ hostage.
I’ve seen dictators that do more things for their subjects than the governor does for his constituents.
Political favoritism? LePage finds funding for Livermore Falls project after spurning Skowhegan.
lepage won skowhegan in the elections, now he says thanks by dumping on skowhegan
how come skillings is not sticking up for skowhegan? a tad short on courage ?
Skillings=lepage
I read the article but did not see where Maine is selling some voter approved bonds to fund a Livermore Falls project. So if that is the case, how does your link relate to this article?
“The Maine unemployment data has been slowly ticking higher over the past several months. ”
http://www.onlinesentinel.com/news/Maine-unemployment-june-jobs-rate.html
http://news.yahoo.com/unemployment-rates-rose-27-us-states-june-145624936–finance.html
King LePage won’t issue bonds..What a power trip this loser of a man is on..Record low interest funds available.. and King LePage sits in his office laughing at Mainers as the State unemployment rate goes up..This is what the tea party is all about folks..
In the battle of witts,
Lepage is unarmed!
“Austerity” is a failed policy that’s destroying Europe and will destroy America if we let the Republicans get away with it.
Remove LePage next election…. He is an insult to the people of Maine …
I don’t know if Mr. McCabe or any other Skowhegan officials will read this, but my advice is to file a lawsuit against Governor LePage and the state of Maine for breach of contract. This may not be quite right, but I think that if you enter into an agreement with another party, offer and acceptance, and you subsequently spend money in fulfilling your part of the agreement, the other party is obligated to fulfill its part of the agreement. Otherwise, it’s a breach of contract.
The Livermore Falls rep said that they definately are getting their grant money. Favoritism? Perhaps that rep knows how to kiss whose butte…
The Republicans are intent on strangling our government and economy they all but destroyed the private sector now they’re pulling the pin on the public sector in hopes of blowing it up too.
SwampDonkie, You are wading in a swamp of Kool-Ade from which you have been drinking too much.
Apparently those who are on the clown squad are only capable of personal attacks?
I would like to see how many permanent jobs will be created once this project is complete. We listen to the complaints that we are losing jobs but never show the numbers. If the funds for this project are for a meaniful amout of permanent jobs then i agree that the funds should be released to continue the project. If they are for temporary and or sustainment then we are throwing good money after bad as the question what happens when these funds are gone.
The buck stops where it does.. The poor financial condition of our state needs to be addressed, which our Govenor is doing and thats his no. 1 job!!.
Unlike other politition, who are more interested in reelection, we have a Govenor who is committed to bettering the state for all of us and our future. We need more state officials like him to serve the general public and not their special interest and desires or opinion.
As any head of house hold will explain that we can not afford what the Jones do or over spend and go belly-up.
do not create bills. If not necessary.
Why should anything Bubba LePage does suprize anyone…….I would be willing to bet Marden’s wont even take him back at the end of his one and only term!! All I can say is if this is how the Republicans are going to run things it will be another 40 years before you will ever get another chance to run/run it into the ground. Jeff keep up the good work and dont let the Bastards wear you down!!!
I disagree with LePage on a lot of things, this one I can agree with, however it was voted on and approved and towns were already looking forward to this money. Yup it is the burden of the tax payer like with other bond foolishly voted on. Maybe for future bond votes he can do this, this state has a serious spending and borrowing problem, and to constantly borrow bonds year in and year out and having everyone cry in the state we can’t pay it back, the majority of this states residents is contributing to making this state go broke
You nailed it!! The people who vote for these stupid bonds are seldom the people who have to pay for them. I know most of the lefties and democrats will say “everybody pays taxes”. Oh no they don’t, at least not their share. Although most people do pay some ‘sales tax’ or gas tax, that’s where it ends. There are way too many people who pay no property tax and little or no income tax (these are the taxes which really count) yet they vote ‘yes’ everytime there is some inane bond issue on the ballot. These bond issues often are described as “job creators” to get mindless suckers to vote for them. If the were really job creators, every Maine citizen would have three fulltime jobs.
You won’t believe this. Probably you won’t even read this. But the proportion of total taxes paid is amazingly close to the proportion of income earned by income level. A research group called Citizens for Tax Justice came up with these figures. The top 1% in income with average income of $1,254,000 earns 20.3% of total income and pays 21.5% of total tax. The bracket from the 80th to 90th percentile earns an average of $100,000, earns 14.3% of all income and pays 15.1% of all taxes. For the 40th to 60th percentile with average earnings of $40,700, the percent of total income is 11.6% and this group pays 10.3%. Even the lowest 20% of earners with average earnings of $12,500 and earning 3.5% of total income pays 2.0% of total taxes.
You might dismiss Citizens of Tax Justice as just some lefty outfit, but I haven’t seen any study disputing their findings.