Governor to Introduce Bill Addressing Attorney General’s Overreach of Authority

AUGUSTA, Maine – Governor Paul R. LePage yesterday announced he is introducing legislation to prevent the Attorney General’s overreaching of authority.

The Governor’s proposed bill clarifies and restricts the scope of the Attorney General’s authority as it pertains to the receipt and spending of public dollars. Governor LePage initiated the bill as a result of Attorney General Janet Mills taking unilateral action after the State of Maine received a $21.5 million settlement.

In a letter to Legislative leadership, Governor LePage cites McGraw-Hill and Standard & Poor’s litigation in which an agreement of the settlement allocates to the State of Maine $21.5 million – “the largest ever one-time settlement in Maine history,” according to the Attorney General.

The settlement stipulates the amounts allocated to the State are to “be used or expended in any way permitted by applicable state law at each State’s sole discretion.” Instead, Attorney General Mills has reserved to herself “sole discretion” over how the money would be used within a list of specified purposes related to consumer protection, the Governor explains in the letter.

“She does not have the authority to take settlement proceeds on behalf of the state and unilaterally make policy decisions about how that money should be spent,” the Governor wrote to legislative leaders. “Not only does her action overstep her authority, but it is also repugnant to the constitution. As you well know, the constitution clearly asserts that the power to appropriate revenue is held exclusively by the Legislature and checked by the Executive.”

Governor LePage to Sign his Bill Restoring Rainy Day Fund

Augusta, Maine - Governor Paul R. LePage announced today that he will sign LD 1807, the bill he submitted to replenish the state’s rainy day fund and restore fiscal responsibility to state operations.

The Governor will inform the State Treasurer Neria Douglas to move forward, with all due haste to release bonds to fund infrastructure projects, mostly for roads, highways and bridges. The projects will put up to 25,000 Mainers to work.

“It was irresponsible to raid $21 million from the state’s rainy day fund to avoid making tough choices on the budget,” said the Governor. “This short-sighted move would have left the state with only three days of cash flow to operate in an emergency. There was a high risk of a downgrade in our credit rating, which would have cost Maine taxpayers millions in higher interest rates on bonds.”

“I’m grateful to the Senate and House Republican leaders Kenneth Fredette and Michael Thibodeau, as well as the Republican members of the Appropriations Committee for standing firm on passing a bill without additional spending.”

While the Governor is pleased that his bill passed with no strings attached, he said the real winners are the people of Maine. “My plan to replenish the rainy day fund has averted millions of dollars in extra interest fees that hard-working Maine taxpayers would have had to pay, and it will put thousands of Mainers to work,” he said. “This is what it’s all about: doing the right thing for the people of Maine.”