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PRESS RELEASE

JUNE 14, 2013

State Treasurer continues ready to prepare General Obligation Bonds; Calls on Governor to sign budget; Calls on Governor to sign TEFRA sign-offs
AUGUSTA -- State Treasurer Neria Douglass stands ready to issue bonds that were authorized by Maine voters in June 2010 and November 2012 as she has been since being sworn in January 7, 2013. The first step in the process is receiving clear financial information on what is planned and ready. Yesterday we asked agencies what projects are on deck. When we hear back, we can restart the investments that were stopped in June 2012. Yesterday, the Maine Information Statement (IS) on current finances and other fiscal matters was made public on the Municipal Securities Rulemaking Board (MSRB) website through the Electronic Municipal Market Access (EMMA) service. This information is used in preparing bonds, and is up to date right now. Interest rates are beginning to rise. I hope the Governor will encourage quick turnaround of information. And the construction season began weeks ago. I am ready when he gets us the information we need for sound financial planning. The more time passes, the more work is required to update the Maine IS that is current through May 16, 2013, supplemented to May 30th, and is required to issue bonds. The Maine Governmental Facilities Authority (MGFA) used the Maine IS to successfully issue lease revenue bonds that sold yesterday, June 13, 2013. The money will be used to complete the Augusta Courthouse and to renovate the Machias Courthouse. The Maine Judicial System asked to have the funds for immediate work in June 2013. When evaluating the actual repayment schedule, I saw that Maine would save $1.9M in FY 2014-2015 due to lower costs than originally estimated. I notified all members of the Appropriations committee last week. I love helping Maine and those working for positive change, said State Treasurer Neria Douglass. I call on the Governor to quickly sign the budget just passed responsibly by twothirds of the Legislature. The rating agencies and financial markets will not look favorably on his actions if he delays or vetoes it. Ratings on current outstanding

bonds are set and will not change, but ratings on new issues could be negatively impacted by conflict between the Governor and the Legislature. As I said in January, we can fix this by working together. Other projects in Maine are financed by moral obligation bonds that have also been held hostage by the Governor. They need his sign-off. The Maine Health and Higher Education Facilities Authority (MEHEFA), which funds education and hospital projects, and the Maine Housing Authority (MHA), which funds affordable housing projects, are two examples. The Tax Equity and Fiscal Responsibility Act (TEFRA) requires a sign-off, which is performed by the Governor in Maine. This is a ministerial duty he is required to perform just as the Treasurer is required to sign checks for bills that are properly due. (In New York City, for instance, bonds of the New York Industrial Development Agency have a sign-off by the Mayor. See Step 6 at http://www.nycedc.com/nycida/applicationprocess .) Today I call on the Governor to sign the TEFRA notices that have been waiting since last fall. Lets work together to get Maine back to work while interest rates are still low. The Governor has not written to the State Treasurer on these topics. In a veto message to the Legislature he mentions the State Treasurer. A veto message to the Legislature is not the right way to communicate with me, said State Treasurer Neria Douglass. I expect the courtesy of direct, respectful communication on the important financial needs and conditions of the State. Frankly, the ball is in his court, as we asked his people for information yesterday. For further information contact: Neria Douglass (207) 782-1518 (home); (207) 624-7477 (office)