Mills unveils transportation borrowing plan for Maine

(The Center Square) – Gov. Janet Mills wants to pour more than $100 million into upgrading Maine’s transportation system under a newly unveiled borrowing plan.

On Friday, Mills unveiled a proposed bond bill that would fund bridge repairs, upgrades to the state highway system, resurfacing noninterstate highways and safety upgrades.

Maine Treasurer Henry Beck said with interest rates at historic lows, now is the time for the state to borrow to update its roads, bridges and other transportation infrastructure.

“Interests rates are at historic lows to the benefit of issuers,” he said in a statement. “Maine bonds are a quality investment now more than ever and will finance vital projects to benefit Maine people.”

Bruce A. Van Note, commissioner of the state Department of Transportation, said because the bond would be used to match federal pandemic relief funds headed for the state, the impact of the borrowing will be “amplified.”

Maria Fuentes, executive director of the Maine Better Transportation Association said the borrowing to help improve roads, bridges will have a “ripple effect” on transportation investment.

“Transportation impacts everyone in Maine every day, and we know investments in infrastructure pay off in terms of safety, economic prosperity, and quality of life,” she said.

Under the plan, which requires legislative approval, the state would leverage the borrowing and federal relief money to resurface more than 300 miles of highway resurfacing, at a cost of $109 million, spend $169 million on 68 bridge projects and hundreds of millions on other highway and transportation upgrades, according to the Mills administration.

The Biden administration recently gave New Hampshire a C- grade on infrastructure, saying there are at least 315 bridges and nearly 1,438 miles of highway in poor condition. The state’s commuting times have increased by 1.9% annually. Meanwhile, the average New Hampshire driver spends $543 a year in auto repair costs, according to the statement.

James Gardner, Jr., president of Maine Municipal Association, said upgrading the state’s roadways is crucial for its economic health and pandemic recovery.

“Good roads ensure that locally grown, harvested and processed products are delivered to businesses throughout Maine and across the county,” he said.

Mills’ proposal also includes a request to borrow $40 million to replenish a state land conservation fund that is nearly depleted.

The plan is scaled back from one Mills touted in February during her state of the budget address, which had called for borrowing vastly more money to pay for the upgrades.

Maine expects to get more than $1.1 billion in federal funds from the $1.9 trillion American Rescue Plan, a pandemic relief package signed by President Joe Biden in March.

Mills outlined plans to spend the money in her Maine Jobs & Recovery Plan, which was submitted to the Legislature last week, which includes about $50 million for fixing roads, bridges and transportation systems.

Mills is also expected to soon release a proposed supplemental budget that is anticipated to include other pandemic-related spending plans.

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