State of Maine Prepared to Invest in Transportation, Education

June 13, 2014

For Immediate Release: Friday, June 13
Contact: David Heidrich, Assistant Director of Communications, DAFS (207) 624-7800

AUGUSTA – Governor Paul R. LePage issued a statement today about the sale of the State of Maine’s general obligation bonds. The sale of these bonds includes projects to support the University of Maine, Maine Maritime Academy, National Guard armories, and transportation infrastructure projects. It is estimated that projects funded through the sale of these bonds will put as thousands of Mainers to work.

“Earlier this year, I demanded that the Legislature replenish the State’s Budget Stabilization Fund to its $60 million balance,” said Governor Paul R. LePage. “When they were unable to do that, I introduced my own plan to replenish the fund and restore fiscal responsibility to state operations. Last week, that fiscal discipline was rewarded with positive ratings from both Moody’s and Standard & Poor’s. This week, the state was rewarded with low interest rates.”

The $127 million in general obligation bonds will finance both tax-exempt and taxable projects. Bonds for tax-exempt projects were sold to Raymond James at an all-in rate, or total interest cost, of 2.019 percent. Bonds for taxable projects were sold to J.P. Morgan at a rate of 0.925 percent.

“This is good news for Maine,” continued Governor LePage. “The projects funded through the sale of these bonds will put hardworking Mainers to work and make critical investments throughout our local communities.”

“The fiscal reforms of the LePage Administration helped drive interest rates down,” said Richard Rosen, commissioner of the Maine Department of Administrative and Financial Services. “The State of Maine has a strong reputation in the bond market, and the positive ratings received from the rating agencies helped ensure we could get the best deal for Maine taxpayers.”

Standard & Poor’s assigned its ‘AA’ rating and Moody’s Investors Services assigned their ‘Aa2’ rating to the State of Maine’s general obligation debt. Both ratings received a stable outlook from the rating agencies.

The State of Maine is scheduled to close on the bond sale next week.