Politics & Other Mistakes: The price you pay

7 mins read
Al Diamon
Al Diamon

I recently received a shocking secret recording of statements made by Republican Gov. Paul LePage.

No, not the one uncovered by blogger Mike Tipping in which LePage falsely claims there’s a $47 million budget surplus, that nearly half of able-bodied Mainers are unproductive slugs and that he has a big lead in the polls in his bid for a second term. There’s nothing shocking about the governor saying stuff that’s completely false. He does it all the time.

What makes my recording different is that it contains statements by LePage that are accurate.

“It is our duty as public servants to ensure each taxpayer dollar is spent appropriately to earn the highest return at the lowest cost. That is especially true when we are spending borrowed money – money that has to be paid back by future taxpayers, with interest,” LePage said. “Until our debts and more importantly, our spending are back under control, adding more of a burden would be fiscally irresponsible.”

I can’t reveal the source of this secret statement – otherwise, it wouldn’t be secret – but I can say it bears a close resemblance to a June 2012 letter from the governor explaining why he was refusing to authorize the sale of bonds approved by voters in 2010.

“I cannot personally support any of these bonds and will not vote for them at the polls in November,” LePage said in another surreptitiously recorded remark that closely parallels a statement he sent to the Legislature in May 2012. “Even with the voters’ authorization to borrow this money, my administration will not spend it until we’ve lowered our debt significantly. That could be several years.”

Since making those remarks, the governor has agreed to issue most approved bonds, but only after the state paid off its $186 million debt to Maine’s hospitals – using money it borrowed against future revenue it will receive from a new wholesale liquor contract it hasn’t yet negotiated. So, Maine went from owing the hospitals a load of cash to owing the same amount (plus interest) to a bunch of bondholders, which is either a form of debt reduction worthy of a Nobel Prize in economics or an example of political bull pucky.

All of which brings us to the Nov. 5 ballot, when voters will be asked to approve five bond issues that will produce $150 million (plus $33 million in interest) in new debt. That will add to our current bonded debt of more than $400 million in principal and interest. That doesn’t count bonds that have been authorized but not yet issued, which amount to over $200 million.

Right now, our borrowing is costing us nearly $100 million a year. If all the bonds on the November ballot are approved and the pending bonds are sold, that figure will increase by about $80 million each year. That money will not be covered by liquor sales, because we’ve already spent the next decade’s worth of those profits. So, I guess it’ll have to come out of your taxes.

Here’s what you’ll be asked to approve.

Question 1 is a $14 million bond issue to upgrade and repair Maine Army National Guard facilities around the state and to purchase land for a machine gun training facility. It carries interest costs of $3 million, but it also makes the state eligible for another $14 million in federal funds. There’s no question these buildings are in need of work, but there is some question about whether we need 34 aging Guard facilities scattered around the state. I’d feel a lot more comfortable voting for this if somebody could explain why consolidation doesn’t make sense.

Question 2 calls for $15.5 million for improvements at the University of Maine System, which – given its declining enrollment and elimination of programs – could certainly stand improvement. But before we borrow heavily to do that (this bond will cost us $3.4 million in interest), maybe we should consider merging some of the smaller campuses and unifying the university and the Maine Community Colleges systems.

Question 3 is the biggie, $100 million for highways, bridges, ports and a variety of other transportation projects. While there are certainly boondoggles hidden in this package, much of the work is needed, and the $154 million in additional funding it will allow Maine to grab from the feds and other sources makes it the most worthwhile item on the ballot.

Question 4 calls for $4.5 million for a new science facility at Maine Maritime Academy in Castine. It would open the way to another $10 million in private investment – and nearly a million in interest costs.

Question 5 is for $15.5 million for the aforementioned community colleges. Some of the same objections I raised to Question 2 pertain to this item.

Question 6 isn’t on the ballot, but it ought to be. It should read, “Do you want to reduce the amount Maine owes each year for debt payments by refusing to spend money we don’t have in the vain hope we’ll be rolling in dough when the bill comes due?”

I’d be voting yes on that one.

Secret recordings can be emailed to me at aldiamon@herniahill.net.

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29 Comments

  1. If we all go by the words of Governor LePage (secret recordings or not), I’d first like to ask him about the new business that he has brought to the state? The improvements to the economy… (insert crickets here)

    These new bonds would yes cost Mainers money but they would provide a boost to a sluggish economy in many ways – by creating Maine jobs now and by preparing Maine students for the jobs that are vacant in Maine right now. We can’t pay taxes if we don’t have a job – and become part of that 47% that Governor Page loves so much.

  2. Congratulations Al, That may be your best literary work ever!
    …well except for the first part where you continue to blindly criticize our governor, and then drivel on… and end up agreeing with him.

  3. Al: Crapping on Gov LePage is getting old. Why not start on The Affordable Care Act that our illustrious Prez. is shoving down our throats. Affordable? Not yet. One family who was paying $1200/mo is now going to pay $1800 to $2400, depending on the deductible. I think the discussion of impeachment should be one of your next subjects.

  4. Nancy ~ “One family?” What family? What you say doesn’t make sense to me. Details, please! And what has our duly elected president done that you think he should be impeached for?

  5. Question 6 should read: “Do you favor reducing the size of the state legislature by 50%”…..wait that will never show up because it would pass overwhelmingly.

  6. laura,,,
    my family that’s who.
    we are simply going to pay more for the same or less coverage under the ACA..
    higher premiums and deductables,,what’s the good in this again??
    I hate it already and want it to go away.
    I heard the only people it works for are those that “dont”……..
    I work,,it aint working for me.
    Fact.

    Oh and impeachment,,,Benghazi
    He should be held responsible for that shameful immoral mess.
    His admistration turned their back on our own people and some of them DIED becauseof it.
    Funny how only NOW after he is reelected does 60 minutes or any of the other biased news agencies report all the lies and coverups.
    As Hillary said,,what does it matter?
    IT DOES MATTER.
    Criminals.

  7. EME, goodbye LePage? So you want to toss the guy who’s making us pay off our debt and is against spending money we don’t have. Your right, we should probably follow the rest of the country and raise the debt ceiling. I guess we can’t wait to get back to someone like Baldacci who helped Maine get $183 million in debt to the hospitals in the 10 years preceding LePage taking office. I mean all LePage has done is give Mainers their largest income tax cut ever:

    • The biggest change in taxes on a percentage basis goes to the working poor, a reduction in their income taxes of 83.6 percent. That group is counted as 19,503 “tax families.”

    • The biggest change in taxes on a dollar basis goes to the tax families making $325,974 and above. Their taxes will down $3,021 per family. There are 6,643 families in this group.

    • A broader view comes by looking at the middle: those making from about $33,000 to roughly $87,000, about 40 percent of all taxpayers. Their taxes go down about 8.6 percent.

    2014 here we come…

  8. Have Mainers ever said no to a bond issue? Spend it as if you actually had it; after all your kids are picking up the tab.

  9. Laura
    Operation Fast and Furious, IRS targeting conservative groups, DOJ targeting the AP, NSA wiretapping Americans, Benghazi, Solyndra just to name a few. If these things had happened during a President with an R after his name you would be hollering for his head. Do not let your blind devotion to the party compromise your morals.

  10. Obama won the presidential election – twice. The democracy that we all profess to love worked. The majority ruled. Get over it.

  11. Winning a presidential election does not convey dictatorial powers. Obama’s parade of sycophants evidently believes otherwise. Get over yourselves. If an election were held today, he would lose to PeeWee Herman.

  12. so Laura,,,
    what exactly has king barack actually “delivered” that has improved anyones life..
    besides making you moonbats all giddy for doing nothing?

    his legacy was formed on day one (he simply got elected).
    he hasn’t done anything since.
    get over “that”.

  13. With only a few exceptions here, these comments mirror the talking points of Rush Limbaugh and Fox News. Nothing good can come from that…the aim is to make people hate their gov’t. and their fellow citizens who voted for the WINNER of the last 2 elections.

    G.W. Bush had an ‘R’ after HIS name and what did it get us? The Iraq War, and the greatest economic crisis since the Depression, just to name the worst…what was so ‘moral’ about that?

  14. To all those calling for the president’s impeachment.
    If indeed there is any legitimate basis for these calls for impeachment any member of the Republican controlled house of representatives can submit a bill of impeachment. If there is any legitimate basis then the Republican majority house can impeach the president. The obvious question is why has this not happened. The obvious answer is that despite all of the heated rhetoric and strung together innuendo and speculation there is no legitimate basis for impeachment. Now of course more comments can fly with outraged references to Benghazi, ACA, IRS etc. If those of you advocating impeachment are actually serious I suggest picking out the most sympathetic radically partisan member of the house and spending your time joining together to encourage that congressman to file for impeachment.

  15. The only bond measure I would vote for is one allocating funds be set aside to staff Acadia Nation Park with volunteers operating under the supervision of the Maine State Government in the event the Federal Government feels that it is unable to staff the park. The National Parks were given to the PEOPLE, not to the government, and therefore the government has no right to close them. If public safety is the issue, lets develop a plan that protects the local Maine economy in the event that the Federal Government is unable to fund itself in the way it has become accustomed.
    (Oh, and don’t blame me… I voted Libertarian)

  16. The Democrats voted unanimously for the war in Iraq. Unemployment was at 5% under Bush. A record number of Americans are not now in the workforce. I would argue that the five years under President Obama have been worse economically than most of the preceding twenty. A record amount of taxes have been collected to the tune of 2.7 TRILLION, yet the country is deeper in debt than any time in history. This President has approval numbers that mirror GW as he appears to be just a casual observer of his administration policies rather than a leader. Obama seems to care more about his next round of golf than actually leading the country. Jean why is it that only people on the right are radically partisan? I find Obama, Reid, Durbin, Boxer, Pelosi extremely radical and partisan to the left. As far as someone sponsoring articles of impeachment people in both parties are more interested in re election than representation.

  17. What began as a commentary on Gov. LePage quickly became about Pres. Obama…why is that? Can’t stay focused on a REAL problem? Just confirms my feeling about right-wing naysayers.

    Mike Michaud for Gov. in 2014.

  18. it’s extremely laughable how these libs that railed deleriously against Bush,,,(or anybody other nondemocrat),,,now can only blindly defend baracks every move in AWE of his mastery….

    you dont like anyone criticizing your prez??
    huh,,imagine that….

  19. Criticize the Pres. all you want…but you can’t make up your own “facts”.

    A previous poster did just that, arguing that Pres. Obama “cares more about his golf game than…” Such hogwash! People who “argue” like that will say anything to degrade their subject. When Pres. Clinton left office, there was a SURPLUS…G.W. Bush’s administration went thru that prosecuting a war built on lies that has devastated the country of Iraq, left THOUSANDS on both sides dead, injured and traumatized and WASTED TRILLIONS of $$ in the debacle. The Bush Admin. was still “cutting taxes’ in time of war! The U.S. economy was left in shambles. Everyone should thank their lucky stars that Pres. Obama won the 2008 election, let alone the 2012. Otherwise the GOP would’ve had us back in another Great Depression. Yet today, Nov. 1, there is a cut to FOOD STAMP funding that will literally take the food out of the mouths of the poor. We “liberals” can’t take the credit for that!

  20. Do you have many people saying to your face that Obama is doing a good job? I didn’t think so….

  21. When liberals (or anyone) only listens to ABC NBC CBS or other liberals like Al here, you are only getting one viewpoint, a liberal one. If you listen to Rush or Beck also atleast you get more facts to base your own opinions on. With all the talk about diversity and living in a college town you ‘d think we ‘d be clamoring for more facts and diverse opinions to atleast consider. After all, you wouldn’t marry a guy just going by what his mom tells you about him! After hearing many voices I live conservatively but you bet I am here reading Al ‘s column. I’ve been busy and appreciate hearing about the bond issues, and now I’m primed to learn more so I can decide what I think is best!

  22. Wow! Some strong opinions here from what Rush might call “low information voters”! We should all get some balance: Al and John Frary; Rush and Rachel Maddow; O’Reilly and Jon Stewart; Fox and CNN, then use an open mind to see what seems most credible.
    Health Insurance: Preliminary information is that costs will decrease for our employees about 9% after years for increases at 20% or more.
    Obama: Certainly less successful than we would wish but can’t we remember the Fall of 2008? I’m old enough for Medicare but don’t remember the country in ever being in more peril.
    Bengazi: A terrible tragedy, but compared to Iraq?
    LePage: He should be commended fo his concern about domestic violence. No real jobs have been created in spite of relaxing regulations. I may save about $250 on Maine income tax but my property taxes increased $2,000.
    Impeachment: In Maine we don’t even have a recall provision?

  23. Thank you,”Moderate”. You have lent much decorum to this discourse, not to mention
    common sense.

    You’re right, the yearly property tax has jumped tremendously. No doubt that the schools certainly needed help after the State budget cut funds out from under them.

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