Question 5 on state ballot: Bond to improve community college infrastructure
Maine voters will see several proposals on their state ballot Nov. 6 including four bond issues.
One of those bond issues, appearing as Question 5 on the statewide ballot, would provide $15 million, if approved, to “improve educational programs by upgrading facilities at all 7 of Maine's community colleges in order to provide Maine people with access to high-skill, low-cost technical and career education.”
According to the Maine Office of the Treasurer, “the total estimated life time cost is $19,125,000 representing $15,000,000 in principal and $4,125,000 in interest (assuming interest at 5.0% over 10 years).” Furthermore, the Maine Office of Fiscal and Program Review notes this bond issue would have “no significant fiscal impact” aside from the debt service costs outlined.
According to the Maine Office of the Attorney General, the bonds would run for not longer than 10 years from date of issue and “would be backed by the full faith and credit of the State.”
Central Maine Community College, of Auburn, would receive $2,503,755 to “renovate and expand instructional laboratories, upgrade information technology infrastructure, and upgrade heating and ventilating systems in order to improve energy efficiency and achieve long-term savings.”
Eastern Maine Community College, of Bangor, would receive $2,233,082 to “upgrade information technology systems and convert heating systems to natural gas.”
Kennebec Valley Community College, of Fairfield and Hinckley, would receive $2,190,731 to “fund capital equipment for a new program in millwrighting and industrial mechanics, upgrade information technology infrastructure and instructional and library technologies, and replace and insulate aging windows and facades on certain buildings.”
Northern Maine Community College, of Presque Isle, would receive $1,165,199 to “expand the laboratory for the diesel hydraulics program, renovate classrooms, upgrade information technology infrastructure, upgrade heating and ventilation systems, and invest in energy efficiencies.”
Southern Maine Community College, of South Portland and Brunswick, would receive $4,275,100 to “repair and improve facilities, achieve energy efficiencies, and upgrade information technology systems as well as instructional and library services.”
Washington County Community College, of Calais, would receive $885,853 to “renovate and expand instructional laboratories, upgrade information technology systems, and invest in instruction technologies.”
York County Community College, of Wells, would receive $1,746,360 to “upgrade information technology systems and develop an Industrial Trades Center in Sanford.”
A YES vote approves the issuance of up to $15 million in general obligation bonds to finance the activities listed in Question 5.
A NO vote disapproves the bond issue in its entirety.
Maine State Treasurer’s Statement
“The State of Maine borrows money by issuing bonds. General Obligation bonds are backed by the full faith and credit of the State and must be submitted statewide to the voters for approval.
“Once approved, the Treasurer issues bonds as needed to fund the approved bond projects and uses a rapid 10-year repayment of principal strategy to retire the debt.
“If the bond proposals on the ballot in November 2018 are approved by the voters, general obligation debt service as a percentage of the State’s General Fund, Highway Fund and Revenue Sharing appropriations is expected to be 2.83 percent in FY19 and 2.93 percent in FY20.
The following is a summary of general obligation bond debt of the State of Maine as of September 30, 2018
Bonds Outstanding (Issued and Maturing through 2028)
Principal | Interest | Total | |
Highway Fund | $ 22,320,000 | $ 1,405,708 | $ 23,725,708 |
General Fund | $ 465,050,000 | $ 95,662,182 | $ 560,712,182 |
Total | $ 487,370,000 | $ 97,067,890 | $ 584,437,890 |
Unissued Bonds Authorized by Voters: $64,708,697
Unissued Bonds Authorized by the Constitution: $101,000,000
Total Authorized but Unissued Bonds: $165,708,697
The total amount that must be paid in the present fiscal year for bonded debt already outstanding (for FY2019): $106,258,509.
If the bonds submitted here are approved by voters and issued for the full statutory period authorized, an estimate of the total interest and principal that may reasonably be expected to be paid is $255,000,000.00, representing $ 200,000,000.00 in principal and $55,000,000.00 in interest.
2018 Maine State Ballot questions
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