Bond package to save N. Maine railroad wins in final House round, but loses in Senate

Written by jrood

A borrowing package that includes money to preserve a railroad that's seen as a lifeline to industry in struggling northern Maine was denied final approval by the state Senate late April 7, local newspapers report. As lawmakers worked toward the 2010 session's end, senators debated the $85-million bond package at length before voting 19-16 along party lines for it. But Democrats failed to muster the two-thirds majority they needed to send the bonds to voters. The House earlier gave its final approval by a 100-48 vote.

Nearly $80 million would
go on the June 8 ballot. The remaining $5 million would be voted on in
November.

"This is jobs,"
said Sen. Bill Diamond, D-Windham. "This is our opportunity. This is our
time."

The bill remained alive
as lawmakers decided whether to try to negotiate a compromise on April 8.

The first part of the bond
package includes funds for highways, ports, wind power and water purification.
But most prominent in the debate was $27 million for railroads, $17 million of
which would buy and preserve 233 miles of railroad track that’s being abandoned
in Aroostook County.

The Montreal, Maine &
Atlantic Railway has said it plans to abandon its line in the northern third of
the state because of fallen revenues from shipments of lumber, plywood, logs
and wood chips. Gov. John Baldacci and Democratic lawmakers support the plan to
buy the tracks as well as the rest of the proposed bond-finance projects, which
they say will create 2,000 jobs in the state.

Some Aroostook Country
Republicans, including Rep. Bernard Ayotte of Caswell, also supported the rail
proposal. During the debate, Ayotte compared shutting down the area’s rail line
to "taking a major artery out of a body … it would take years to repair
the damage."

Other bond supporters
said now is a good time for the state to borrow because interest rates are low
and contractors would submit lower bids than they would during better economic
times.

"This is the time
when the money will get the best leverage," said Rep. David Van Wie, D-New
Gloucester.

But opponents pointed out
that the state faces a $1-billion shortfall for the budget beginning in
mid-2011 and warned against borrowing while state finances are shaky.

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