Gov. Paul LePage this week directly linked his contentious proposal to address an estimated $89 million budget gap at the Department of Health and Human Services with his willingness to send a bond package to voters.

At a glance, the governor’s comments signal yet another round of political brinkmanship with Augusta lawmakers. However, there are rising fears that LePage will pressure lawmakers to fully commit to his controversial Medicaid reforms or he’ll veto a borrowing package for infrastructure projects.

“I think the governor is using the bond package as leverage over Republicans,” said Rep. Mike Carey, D-Lewiston. “He’s shown before that he’ll pressure Republicans to do things that they otherwise wouldn’t want to do.”

If no bond package emerges, it will be the first time since 1962 that a biennium will pass in which voters won’t consider a borrowing proposal. The consequences surpass the historic novelty, say advocates for a robust bond deal.

Maria Fuentes, executive director of the Maine Better Transportation Association, said foregoing bonding will have devastating consequences for Maine roads and bridges, improvements to which are already lagging from insufficient state funding. The transit system was recently red flagged as an impediment to economic growth by the Maine Development Foundation, a group representing business leaders.

Attached to the transportation projects are desperately needed construction jobs, according to the Associated General Contractors of Maine.

“The situation is very bleak,” said the AGC’s John O’Dea, who cited U.S. Department of Labor statistics showing that Maine lost 500 construction jobs between February and March.

Sen. Justin Alfond, D-Portland, said a bond package was vital to the economy.

“Every year we don’t bond, we miss an opportunity for job creation,” Alfond said.

Greater Portland has its share of roads and bridges in need of repair, according to the Maine Department of Transportation 2012 list of 73 projects in design but unfunded. The list includes:

• $7.8 million for preliminary engineering plan to replace the Bar Mills bridge between Buxton and Hollis.

• $1.7 million for highway reconstruction on Cummings Road in South Portland.

• $1.2 million to replace the North Elm Bridge in Yarmouth.

Replacement of the Martins Point Bridge in Portland is not on the list. However, the span was recently cited by the National Transportation Research Group as one of the state’s top 10 projects needed to improve the state transit system and increase economic growth.

Ted Talbot, a spokesman for the Maine Department of Transportation, said state transportation needs far surpass available funding.

The LePage administration, Talbot said, is attempting to do more with less. Meanwhile, the administration is touting new projects, such as the Municipal Partnership Initiative, which creates a funding partnership between towns and MDOT so that priority projects are completed.

John Melrose, the former MDOT commissioner, said the program has helped. However, he said, it mostly benefits communities with a higher tax base which can be called upon to float municipal bonds.

“There’s really no option for the rural communities that need a road fixed,” Melrose said.

Lawmakers have indicated that transportation will be favored in a bond package. However, the list of interests advocating for borrowing is long and ranging. The Maine Community College System is seeking an infrastructure bond to chip away at a 4,000-student waiting list. Gary Crocker, with MCCS, told lawmakers this week that the list includes aspiring machinists who could fill an estimated 900 job vacancies statewide.

LePage has cited training for such trades as a priority of his administration. In September the governor told a group of employers in Augusta that Maine had plenty of jobs, just not enough skilled workers.

Meanwhile, the Portland legislative delegation is pushing for a series of spending proposals that it believes will bolster economic vitality of the city and the region, including funding to hasten the development of a multi-modal transportation in Thompson’s Point and money to advance Mayor Michael Brennan’s proposal to encourage interaction between local research and higher education institutions.

Such projects may be viewed as Portland-centric, but advocates for another — an estimated $5 million bond for the Portland Fish Exchange — could have far reaching economic impacts.

Bert Jongerden, general manager of the exchange, said the proposal includes about $1 million for a new roof and other weather efficiency upgrades. More importantly, Jongerden said, is an estimated $4 million to expand permit banking to allow bigger fishing trawlers to fish for an extended period. Jongerden said the permit program is a “life-ring” for a struggling groundfish industry.

“This is a job creator,” Jongerden said.

Alfond agreed. He said the Legislature should take advantage of record low bond rates and send a strong package to voters.

That philosophy runs counter to LePage’s crusade for debt reduction. Last year, the GOP majority in the Legislature went along with the administration’s no-borrowing directive. However, this year, an election year, Republican lawmakers have expressed a willingness to negotiate a modest spending package. The GOP claims its decision to forego bonding last year has put the state in a better borrowing position.

Sen. Richard Rosen, R-Bucksport, said that the spending package will likely focus on the traditional bonding needs, transportation, infrastructure and landbanking programs.

Democrats like Alfond say it’s in Republicans’ self-interest to do so. Subpar roads and infrastructure, others argued, could jeopardize Republicans’ legislative majority when voters hit the ballot box in November.

Republicans are also sensitive to the electoral ramifications of removing thousands of Mainers from Medicaid, or MaineCare, as proposed in LePage’s DHHS budget.

In recent weeks the GOP has signaled a willingness to craft a bipartisan compromise on the DHHS plan. However, a consensus may prove elusive if LePage demands adherence to his original budget plan — a plan that Democrats universally oppose.

Adrienne Bennett said Wednesday that the governor is open to compromise. However, LePage’s comments and recent actions have many concerned. Earlier this week the governor said he wouldn’t consider signing a bond package until lawmakers addressed the state’s “out of control welfare spending.”

His line item veto to reinstate general assistance cuts after lawmakers resoundingly rejected the reductions has added to the tension.

Rosen said he and members of his caucus were still supportive of a “reasonable, responsible” borrowing package. He declined to read into LePage’s comments.

Carey reiterated his view that Republicans will have to make the difficult choice between accepting the governor’s DHHS proposal as is or risk a bond package.

“They’ve been under tremendous pressure to do things they don’t want to do,” he said.

Steve Mistler — 791-6345

smistler@mainetoday.com

Twitter: @stevemistler

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