Washington County commissioners are behind a proposed $8 million bailout from the Maine Legislature that is one of a trio of bills aimed at helping Down East officials dig out of its ongoing budget crisis.
Years of budget mismanagement have drained the county’s finances and led commissioners to ask voters for permission to issue up to $11 million in bonds to refinance debts and keep services running. As the November referendum draws near, officials are struggling to figure out how the county may keep itself afloat if a skeptical public rejects the idea.
The unprecedented bailout request is the centerpiece of that contingency plan. If voters decline to allow the bond issue, the county is on track to run out of money by January 2026. The Legislature reconvenes that month. In even-numbered years, new bills can only be considered if a majority of the 10 leaders in both the House and the Senate deem them an “emergency.”
Sen. Marianne Moore, R-Calais, who submitted the bailout measure as well as another that would allow counties and municipalities in Maine to declare bankruptcy, said they were coordinated with county commissioners and stem from concern that the bond will not pass.
“We’re looking down every avenue; we’re kicking every rock we can,” Moore said Tuesday.
The $8 million would be enough to cover most of Washington’s budget shortfall by paying off what it owes to Machias Savings Bank by Dec. 31. In many other states, local governments are allowed to enter bankruptcy, shielding them from creditors and helping them refinance debts. Maine does not have such a law.
Another proposal from Rep. Will Tuell, R-East Machias, would require referendums to approve county budgets that are now within the purview of commissioners. In Washington County, officials have discussed a 40% budget hike that would go hand in hand with the bond proposal, but Tuell and local officials have decried such a large one-time hike.
Maine has a long history of voter-controlled budgets, with many towns and school district budgets approved by annual referendums or at town meetings. Tuell said the budget crisis in his county necessitates extending that citizen control to the county level.
“I think everyone wants to prevent what happened here in Washington County from happening,” he said. “If allowing more public awareness and dissection of the budget, and an up or down vote on the budget creates that, then … I think that’s a good thing.”
The measure seems to have some bipartisan support, with Rep. Allison Hepler, D-Woolwich, voicing approval on Facebook. Rep. David Woodsome, R-Waterboro, has put forward a nearly identical proposal.
Tuell said he’s also in favor of Moore’s bill to allow governments to declare bankruptcy, and is keeping an open mind about the possibility of a state bailout. He added that the bill titles, which currently have no text and must still be approved by legislative leaders, will be able to change. A spokesperson for Gov. Janet Mills said only that she is monitoring the 2026 proposals.
“There may be other needs that come to light in the coming weeks, months,” Tuell said.
Daniel O’Connor is a Report for America corps member who covers rural government as part of the partnership between the Bangor Daily News and The Maine Monitor, with additional support from BDN and Monitor readers.
