“In the short-term, bonds create construction and related jobs, with workers spending much of their earnings at local businesses,” Dan Coyne, MECEP Legislative Director and fact sheet author writes. “In the long-term, bonds create permanent jobs for those who work in the new facilities and businesses the bonds generate and provide infrastructure for entrepreneurs to start and grow their workforce.”
The Fact Sheet establishes Maine’s “solid record of prudent debt management.” It notes that the State of Maine pays off its bonds in ten years, much sooner than most other states. It also emphasizes that Maine uses general obligation bonds only to fund infrastructure improvements, not to cover operating costs and uses available cash to fund approximately half of annual capital expenditures, improving capacity for the state to issue bonds
MECEP quotes a May 2011 Moody’s Investment Service assessment which found that “Maine continues its conservative approach to debt, with an aggressive payout structure and capacity to accommodate unforeseen borrowing needs.”
“For generations, Mainers have supported critical investments in transportation, communication, education, and other infrastructure, as well as in research and development, conservation, small businesses, and public facilities,” Coyne adds. “We all benefit from these investments. Reversing course as we struggle to recover from the Great Recession would jeopardize future prosperity.”
To read or obtain a copy of MECEP’s new fact sheet, click here.