Commentary
State Budget woes: woe to you and me that is
By Rep. Susan Austin

With the Budget passed, Maine will borrow $447 million this year. We aren't borrowing this money to build schools or an East/West Highway. I told my elementary teacher, Mrs. Lucille Stampon who is a valued constituent, "we're taking out a loan so you and I can have supper!" In other words, just to pay for ordinary expenses over the next two years.

This is a first for Maine and sadly historic. We survived the Depression, wars, and natural disasters without borrowing money to cover current expenses. With consumptive spending the budget writers reached deep down to debt trying to borrow our way up to prosperity. Long after the money is spent, taxpayers will be hit with annual $40 million bills repaying this debt. We're expecting our first Austin Grandbaby; God willing that child should be in high school when that debt finally retires in 2020!

Normally, when the state needs to borrow - usually for major road/bridge construction - it creates a bond package and sends it to the voters. That's democracy. Under Maine's Constitution borrowing over $2 million must be approved by YOU.

The state is so strapped for cash that it actually has to borrow money to borrow this "new" money. The "revenue bond," to be sold by August 15, will yield $447 million. From that, bond brokers will take about $5 million and insurance fees will cost approximately $1 million. There's more. The state can't even afford to pay the interest on the loan so we're borrowing that, too - $31 million over the next two years. Obtaining the $447 million will cost $37 million. What a terrible waste of $31million that could have contributed towards two new schools such as one Cumberland-North Yarmouth built recently or several road improvements.
Maine is not lacking revenue. The state took in $100 million more last year than the prior year through economic growth. We're the highest taxed state in the country (again) in terms of state/local taxes relative to income. We're paying truckloads of taxes as Governor Baldacci has also raised taxes and fees by $260 million since taking office - this new budget raises them by $117 million. Our unemployment rate is 4.1 %. If we can't balance the books under these favorable conditions, when will we? You do not deserve this Burden.
A "citizens' veto" process on this $447 million loan portion is being considered. If successful, that loan portion of Budget will be on the ballot in November offering you the final say on this ill-conceived borrowing scheme.
Rep. Austin (R-Gray) represents District #109, portions of Gray, North Yarmouth and Pownal and also serves on the Business Research and Economic Development Committee.