Staff Writer
With a bit of fine-tuning, lawmakers in Augusta agreed to compromise on April 12, settling on a $57.8 million bond package — a cut of about $27.2 million from the original figure presented to them. It will be up to the voters come June to determine the fact of a number of projects, including the future of rail service in Aroostook County. Talks that looked liked they’d reached the end of the line in Augusta with regard to the future of northern Maine’s rail system and ways to fund it picked up steam as the week progressed, with federal officials joining state lawmakers, community and business leaders in Bangor on April 8, to discuss what could be done to keep trains operating between Aroostook and points south. The meeting was held at the Margaret Chase Smith Federal Building.
At the heart of the talks was a proposed $85 million bond package that included $35 million for road construction and maintenance, over $5 million for drinking water and wastewater infrastructure projects and about $5 million for wind energy initiatives, $5 million for a new four-year dental school and dental care programs in rural areas, $10 million for rail projects and $7 million for a deep-water berth for Portland’s harbor. Also included was $17 million to purchase roughly 240 miles of Montreal, Maine and Atlantic’s railroad tracks between Millinocket and Madawaska. MMA is seeking to abandon the line, citing declining revenue as the reason for their decision.
Augusta lawmakers couldn’t reach a two-thirds majority by the end of the week to send the bond to voters in June. With federal officials visiting Maine to discuss the rail line, providing input on the future of Maine’s rail infrastructure, lawmakers opted to gather again April 12, to give ironing out the package another try.
On Thursday, Federal Railroad Administrator Joe Szabo and other transportation officials met with U.S. Sen. Susan Collins, Gov. John E. Baldacci, as well as local and state officials and stakeholders regarding MMA’s request to abandon over 200 miles of tracks — the bulk of which runs through Aroostook County. Szabo was invited to Maine following a March 4 Senate Appropriations Transportation Subcommittee hearing in which U.S. Transportation Secretary Ray LaHood pledged to send federal transportation officials to Maine to help develop a plan to keep the railway operating in Aroostook and Penobscot counties.
Collins shared her thoughts on the gathering during a phone interview just moments after the more than two-hour meeting.
“It was a very productive day — a very useful meeting. It gave an opportunity for all major businesses who use the rail line to talk about the economic impact and negative consequences discontinuing the line would have on them,” said Collins.
Statistics were also provided on the number of jobs that would be affected, should the line be abandoned.
“NMDC officials presented their estimate of job losses (in Aroostook County). About 760 jobs would be directly jeopardized, with an additional 960 jobs indirectly affected,” said Collins. “The impact would be really devastating.”
Collins said those at the meeting were “determined to not only save the line but improve maintenance on it.”
“We also want to see speed improved. It (speed) has been inferior for businesses who rely on railroad (to move products efficiently). The track hasn’t been kept up,” she said.
Collins said what became clear is that it will take a “concerted effort, with the state leading the way, with help from the federal government, with input from the shippers.”
“There was even talk of forming a co-op,” she said. “The governor suggested a smaller group get together to hammer out a specific plan.”
Officials on hand included: Congressman Mike Michaud; MMA’s CEO Bob Grindrod; Walt Elish, Aroostook Partnership for Progress; David McKenney, McCain Foods; Larry Clark, Presque Isle Industrial Council; Denis Berube, Northern Maine Development Commission; Jim Irving, JD Irving Co., Ltd.; and Theresa Fowler, executive director, Presque Isle Area Chamber of Commerce.
Fowler said she was cautiously optimistic about the meeting.
“Discussion was positive, but there’s still lots of work to be done,” said Fowler. “We just want to see the bond package make it to the voters.”
Sen. Olympia Snowe, who was unable to attend the meeting but had a representative present, reaffirmed via press release her commitment to preserving continued freight rail service in northern Maine and urged local stakeholders to continue to work toward a resolution that would guarantee businesses within the region have the capacity to move their products to markets and create the jobs necessary to revitalize the economy.
“We must aggressively seek solutions for those who rely on the railroad for the health and growth of their businesses — and we must guarantee that the rail service offers reasonable rates to the many shippers who depend on freight transportation to compete in an increasingly global marketplace,” said Snowe. “Without an effective transportation system, particularly a successful rail line in a state of good repair, the companies along the 241 miles of the Madawaska-Millinocket corridor will face a stiff challenge to competitively convey their freight across the country and beyond.”
“Thursday’s meeting has moved us closer to a level of certainty that rail service is instrumental to this region and to our future economic growth,” said Snowe.
Fowler noted a handout from a JD Irving representative showed how shipments from Aroostook businesses tied in with other businesses to the south.
“If the rail line is discontinued, it won’t be just Aroostook businesses that will suffer; this decision will have a statewide impact and beyond,” said Fowler.
According to the handout, Aroostook rail line connections provide mills in communities including Millinocket, Lincoln, Old Town, Dover-Foxcroft, Oakfield, Van Buren, Jay, Bucksport and other locations with the wood products necessary to produce goods at their respective establishments.
“What’s most encouraging to me is we presented a united front to the federal railway officials — convinced them that we can’t allow the rail line to be abandoned,” said Collins.
Sen. Collins said losing the line was not an option she’s willing to agree to now or ever.
“This is a very serious issue. If we don’t save this railroad, when the economy recovers, businesses won’t be able to recover,” said Collins. “I left the meeting feeling positive a solution can be found.”
Collins said while the federal government won’t buy the line, officials are willing to help find a solution.
“Federal railway officials pledged their help. Joe (Szabo) said they won’t be the first dollar but could be the last,” said Collins, referring to the federal government’s infrastructure improvement programs and related funding.
“I’m very encouraged, as a result of this meeting, that we can in fact — with everyone working together — develop a plan to save the rail service,” said Collins.
Lawmakers in Augusta helped advance Collins’ vision by passing an amended bond package on April 13. The $57.8 million compromise package was passed by a vote of 102-44 in the House and 30-5 in the Senate. It contains: $24.8 million in highway construction and repair; $7 million to protect ail service in Aroostook County; $5 million to expand rail service in Lewiston-Auburn; $4 million to help restore rail service in Western Maine along the Mountain Division Line; $6.5 million for a new deep-water port in Portland; $500,000 for the Small Harbor Improvement Program; $5 million for advanced equipment for the University of Maine to build a component manufacturing sector for wind power; and $5 million for a community-based teaching clinic operated by a college of dental medicine and for upgrades to community-based health and dental care clinics around the state.
In addition, the agreement includes up to $7 million in cash that was originally slated for the state’s Budget Stabilization Fund to provide the balance of the resources necessary for the purchase of the Aroostook rail line. It also includes language that would immediately place $7 million into the BSF with any year-end surplus.
The governor will also issue an executive order creating an oversight panel to monitor and review elements of the takeover of the Aroostook rail line. The panel will assure transparency and guide policy questions during the transition to a new operator and will include representatives of the executive and legislative branches as well as private sector and nonprofit economic development representatives.
“Once again, we have managed to overcome partisan differences and do what is right for our state,” said Baldacci. “Last week, it appeared as if we had reached an impasse, but through hard work and patience, we have crafted a job creation package that is responsible and balanced.”
