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April 2, 2010 Jay Finegan, 287-1445
Rep. Tardy: With Maine Debt at $11.5 Billion, This Is No Time for Bonds

AUGUSTA – State Rep. Josh Tardy says Maine taxpayers cannot afford a Democratic proposal for more borrowing when the next state budget faces $1.2 billion in cuts and state debt already stands at $11.5 billion.

Rep. Tardy, leader of the House Republicans, said the next governor and legislature will confront a “brutal economic reality.” The state budget, he said, “will need to be cut by $1.2 billion. That’s a reduction of more than 20 percent, big enough to generate widespread chaos.”

The remarks were made during the taping of a radio message that will be heard on many Maine stations over the weekend as the Republican response to Governor Baldacci’s weekly radio address.

Late in this legislative session, Democratic House and Senate leaders proposed a bond package of $99 million. Governor Baldacci advanced a plan to borrow $79 million. According to Rep. Tardy, those proposals violate the spirit of an understanding that last year’s $150 million bond package would complete borrowing for the 124th Legislature. “We thought we had a deal with the other side that there would be no more bonding for at least two years,” he said.

According to Rep. Tardy (R-Newport), his objection is not based on the merits of the projects that would be bonded. Rather, he said, the state is now so far in debt that taking on more debt would be irresponsible.

“House Republicans believe the people of Maine cannot be buried deeper and deeper in debt,” he said. “Much has been made about the budget shortfalls that have plagued the state for years, but Maine residents have heard very little about the state’s growing addiction to borrowing. Our debt now stands at a staggering $11.5 billion. It will take years to dig out from this mess, and the taxpayers of Maine are on the hook for all of it.”

Rep. Tardy added that legislators should be focused on weathering the next budget instead of trying to create more debt. The current budget, he said, spent $900 million in one-time stimulus money. The next legislature also will have to find an estimated $300 million to cover investment losses in the pension fund for teachers and state workers. “Add up the figures; we’re looking at $1.2 billion,” he said. “And now Democrats want to throw another big bond debt on the taxpayers. We can’t let that happen.”

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