AUGUSTA, Maine (AP) – Maine Gov. Paul LePage and the state treasurer are battling over the governor’s decision to withhold bonds.
State Treasurer Neria Douglass said the governor’s administration signed a financial order in July authorizing $69.7 million in funding for projects that would be paid back with future bond sales. But in an email to Douglass Wednesday, the governor said he would not sign off on bonds until there is $60 million in the state’s rainy day fund.
His administration says a Democratic bill that would take $21 million from the rainy day fund to pay for state aid to the state’s cities and towns will hurt the state’s credit rating and that issuing bonds right now would be financially irresponsible. The bill, approved by the Legislature, awaits action by LePage.