MILLINOCKET, Maine — The revised state budget Gov. Paul LePage signed Wednesday doesn’t end his feud with town leaders over $216,000 in withheld education aid despite its funding the item that set off the fight, officials said.
The budget includes $320,000 to fund operations of the state-owned Dolby landfill in East Millinocket — which includes enough money to cover a $50,000 payment that Millinocket pledged to pay — but doesn’t add $216,000 to the $504,000 in Sudden and Severe Impact funds the town already has, officials said. LePage signed the budget on Wednesday, LePage spokeswoman Adrienne Bennett said.
An amendment to the Department of Health and Human Services budget that Rep. Herb Clark proposed during Tuesday night’s session, which would have allocated $216,000 to Millinocket, was defeated in the House by a 72-71 vote, officials said.
“The governor and the state owe Millinocket taxpayers a check. I’m just fighting to keep our schools open for the children of Millinocket,” Clark, D-Millinocket, said in a statement. “The governor of a state should never blackmail the people of one small town. But that’s exactly what [the governor] is doing to my town of Millinocket.”
“ It has become a high-stakes game of chicken that must end,” Clark said.
Clark added in an interview that the Republican support his amendment drew showed that members of the governor’s party side with Millinocket.
Sen. Doug Thomas, R-Ripley, who led the Dolby funding effort with Clark, expressed regret that the education aid controversy hasn’t been settled.
“What do we do? We have the governor and Town Council in Millinocket and nobody seems willing to give,” said Thomas, who twice arranged meetings between town and state officials to settle the dispute. “Between them they are going to have to settle it. What do any of the rest of us do?
“They planted their feet and there they are,” Thomas added. “We sat down and we talked about it and there is no middle ground.”
Bennett, who has said that state education officials have assured the governor that $504,000 would meet the town’s educational needs, said Wednesday that state officials are continuing discussions with businesses interested in running the Dolby as part of a private initiative. The business representatives toured the landfill in late March.
A successful conclusion to those talks would end the state’s need to fund Dolby at all, Bennett said. She declined to comment on the $216,000 dispute.
The fight began when LePage claimed that town leaders broke their pledge to pay $50,000 annually toward the landfill’s estimated $250,000 costs. He issued $504,000 on March 7 instead of the $720,000 the town is owed in Sudden and Severe Impact funds.
As part of the $250,000 deal state officials were engineering, East Millinocket pledged another $50,000 in cash and services to complement the $150,000 the state would have offered.
Sudden and Severe Impact funds are state monies given to municipalities to cushion against steep tax losses ― in the towns’ case, the closure of their paper mills. The LePage-engineered sale of both mills to a New Hampshire investor was crucial to the East Millinocket mill’s restart last October, restoring more than 200 jobs.
Millinocket officials angrily denied LePage’s claim. Saying LePage had connected unrelated issues and acted illegally, town leaders produced a string of correspondence that showed they never agreed to more than one $50,000 payment.
During the state’s budget deliberations, legislators upped the landfill allocation from $250,000 to $320,000 to cover Millinocket’s $50,000 and all unanticipated landfill expenses to June 30, Clark said. The budget signed Wednesday includes provisions for the state to continue funding landfill operations starting July 1.
Millinocket Town Manager Eugene Conlogue said he was pleased that LePage didn’t veto the Dolby funding but saddened that the town is still short money.
Conlogue called the budget “an opportunity for the governor to put aside whatever personal feelings he had and help a small town that needs the money.”
The Town Council and school committee will meet in a special session at Stearns High School at 4 p.m. Wednesday, May 23, to discuss whether to sue the state for the withheld $216,000. LePage has professed indifference to the threat of litigation.
The schools, which receive their funding through the town as a department of municipal government, haven’t yet felt the lack of the money, Conlogue said. The town’s second-half tax payments in April are sustaining town coffers.
“We are going to be close on that. It will become an issue down the road,” Conlogue said.
I stated this before if Millinocket has a case against the Governor then procede if not then take what you have been given and move on. Regardless of how things go in the Millinockets the taxpayers have a lot invested in your communittees and are getting tired of pouring money into them.
The Governor of this state should be above lying and budgetary blackmail to get something that he did not secure in good faith negotiations. The Governor’s actions are beneath contempt, and whether or not they are legal does not mean that the Millinockets should stand down and allow him to take a pass on reprehensible behavior. Requiring a town to either contemplate suing him or let him force a town to make local budgetary choices at his direction says a great deal about his character and respect for our state’s history of home rule. He is appalling.
You are just now figuring out that Penguin is a bully? Really? Where have you been for the past year?
Worse, he’s a corporate thug.
It’s actually even worse than that. Penguin is a tea party puppet/joke who doesn’t even understand what a ‘corporate thug’ is and is far too dim to recognize that he’s being used as a tea party puppet/joke.
I knew this guy in 10th grade when we elected him to be Student Council President as a joke. Except Penguin believes that we actually meant it. He doesn’t seem to understand that he was the punch-line
You elected him to be student council president as a joke? Looks like you were the small-minded bully even back then, luv. Stephen King, anyone?
Yea, and look how electing Carrie prom queen worked out for them.
Bangorian would have been the guy who plants the bucket of pig’s blood above the prom queen Carrie’s head. I wouldn’t put it past him.
Can you say Dirigo health.
Actually LePage has kept Dirigo Health funded fully and his administration has been advertising incessantly on the radio stations I listen to in an attempt to INCREASE enrollment!
He campaigned on a promise to IMMEDIATELY completely eliminate Dirigo Health but then found out ir=t works and many Maine small businesses depend on it!
He has been very quiet about that because it clearly demonstrates 1) Like most of the truth about how government works, he knew nothing about the program while he was demonizing it and 2) that he does not keep his promises.
and it demonstrates is is not stupid because he kept the program once he learned more about it and saw that it made economic sense
Then don’t stand down take him to court that is the point if you deserve the funds and he won’t pay. All this talk about he said and she said is not resolving the problems. Sometimes it is worth the effort to prove the point. That is what is not happening here.
You misunderstand the law. Even if they clearly “deserve the funds” there still may be no course of action to legally sue the Governor to secure payment. The law does not provide a remedy for every bad, wrong, unethical thing that anybody does. Millinocket can be absolutely right that they are owed the full amount, but not have legal recourse. We rely on our public servants to do what is right, not just what the law makes them do. In this case, LePage is proving that his word is not worth much, but it is a pity to have to resort to a lawsuit rather than decency.
When the legislature flips to Democrats in November they will vote to pay this money that the state legally owes.
You assume the governor lied and is committing blackmail. It appears to me it’s a case of “she said, he said” where a misunderstanding concerning each party’s obligations occurred during negotiations. All in all, the town of Millinocket has been well served by the governor who managed to reopen the mill and get a lot of local citizens back to work. Personally, I think the town mayor should stop his whining and finger pointing, admit to the possibility of a misunderstanding, thank the taxpayers for coming to the rescue, and start growing up. Right now much of the mayor’s efforts seem to be designed to protect his own image as an administrator who could not possibly be partially responsible for a misunderstanding. To the Millinocket mayor I would advise: hey, relax; we’re all human.
I assume nothing. The written record between the two parties apparently clearly establishes that the town and the Governor’s office communicated about a one-time payment, and that nothing else was ever mentioned. If there were any other smoking gun, I think the Governor’s office would have released it. It sounds as if the 50K going forward was not part of the series of email exchanges or communications at any time, and the misunderstanding is entirely on the part of the Governor.
If I were a Millinocket taxpayer, there is no way I could support having my town’s arm twisted to the tune of 50K a year forever without a serious negotiation. The mayor is doing his job. No matter what the Governor has done for Millinocket, his behavior, grandstanding, and bullying is beneath his office.
When the two parties met my understanding was that there was no written agreement, just a verbal one. From your comment it sounds like you have not personally seen the written record in the governor’s office. That being the case how can you assume the existence of an agreement between the two parties establishing a mere one-time 50k payment? Also, what does his behavior you characterize as “grandstanding, and bullying” have anything to do with the disagreement between the two parties?
If I recall, the mayor’s attitude just before and during negotiations was less than friendly while he was making his own set of fiery demands for Maine taxpayers to dish out money to a town they are not responsible for helping beyond their legal obligation. Ironically, as I recall, many liberal posters on this site criticized the governor repeatedly and ad nausea for being too generous with taxpayer money; to wit, calling the state’s agreement to assume most of the costs of operating the landfill a “bailout” for the polluters who created it. Now many of them are supporting the mayor’s demand for more money. People have short memories don’t they?
PS: The governor strongly believes the state should help people help themselves and no more. I along with many conservatives share that value. The fact the governor wanted the town of Millinocket to pay part of the landfill operating costs over the years was to be expected. It’s hard for me to understand why he would have back away from this request only to reaffirm it at a later time.
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what does his behavior you characterize as “grandstanding, and bullying” have anything to do with the disagreement between the two parties?” Thus we see that there is just no point in trying to find common ground with you?
I have posted no comments to this site previously about Millinocket, so pardon me while I do not stand up as your whipping boy on those. The basic basic basic point is – there were plenty of communications that occurred. No, I have not seen them. However, those released by Millinocket – and NOT REFUTED BY the Governor’s office – show an agreement for a one-time, 50K payment. After the town refused to agree to endless annual 50K payments, saying that they had never agreed to them, and with evidence that says that they are being honest – the Governor resorted to withholding money that has nothing to do with the landfill – money that is clearly owed the town for education. You have no problem with what amounts to blackmail? Um, OK. You think not liking the mayor (and liking LePage, I assume) excuses the Governor’s bullying? Um, OK. I’d say you have an ethics challenge, but hey, it’s your problem, not mine. If you think the town should pay despite having no such agreement, fine. But please, please try to see that withholding state aid to education to get your way is beneath contempt. The end does not justify the means.
What you are saying is this: If we have an agreement whereby you pay me “x” amount of money each year for something while I pay you “y” amount of money for something else, then I have no right to withhold some of the money I agreed to pay you when you fail to live up to your end of the agreement. If this is how you deal with agreements, then forget about negotiating any deal with me, ever.
The governor is only acting in accordance to what he believes is a failure of the town of Millinocket to live up to its end of the bargain. As I implied earlier, the state has been more than generous with the town. The town manager’s failure to recognize this generosity and his rejection of diplomacy in order to come to terms with the governor should be a wake-up call to all town residents. After all, the governor in this case is in the driver’s seat, not the foolish mayor (town manager) who appears to be more concerned about himself than the town’s people.
Maybe you should rephraise that from taxpayers to taxpayer.
I seem to remember Governor LePage making a special effort to recruit new business for this region and to re-open the mills…..and this is how the entrenched Democrats repay his efforts?
Aside from the school children of Millinocket, the biggest loser here is whomever Rep. Clark is running against. After this, Mr. Clark’s reelection is a lock if he’s running again.
Don’t you just love it when LePage and his press secretary think they know more than the town about their education system?
In other words, if your not in the other guys shoes they know more about their situation then YOU do?
Remember that.
Try applying it before you hit send on occasion.
That is exactly what I mean, however, if I have personal knowledge about something, I will continue to share it.
My point is that it doesn’t apply exclusively to people you like.
Don’t you just love democracy in action!
Aw come on,it’s only a quater million dollars.Every town should be able to come up with that.The govenor knows best what is best, not only for our young people ,but our poor and elderly as well. Starve them all , that will solve all our problems..But then who wil he have to blame for everything?
OBAMA
You mean that guy who has LOWERED taxes from when he took office and who has a lower deficit as a % of the GNP too?
Did he do that, or simply cave in to the House Republican versions of tax bills?
the should because the education in millinocket dont no what they are doing .70 percent of the school are failing atleast on class this year . the school board spend money they dont have just like the town s .the town government lies every day they are open for buisness . Thus isn’t a big surprise .there word doesnt meen anything .
“Blackmail” from within the Blaine House. Yep, that’ll surely draw businesses and jobs to Maine. When no one comes bearing taxes and jobs then where will Mr. LePage turn? Yep, at every small town taxpayer in the State. Someone’s going to have to pay to keep three LePages off the couch!
nice job Herbie – Millinocket is lucky to have you.
well its time for those 2 towns to pay their own bills, great northern spoiled both towns. after the northern left you could see the writing on the wall,, maybe the council should go after the paper unions, after all they’re the ones that overpriced themselves out of jobs and business…
I think you may be projecting your dislike of unions onto this situation.
According to the Maine Pulp and Paper Association, “Maine’s paper production has consistently increased since 1990, and in recent years Maine has produced more paper than ever before.”
http://www.pulpandpaper.org/
In other words, as old paper machines have become obsolete, newer high-tech machines have been installed somewhere in the state but not in Millinocket.
I don’t think it was the union that decided not to put up-to-date machines in the Millinocket and East Millinocket mills.
Up-to date technology was installed in Bucksport, Westbrook, and other still operating mills with union workers making union wages making more paper.
Not fair. You are throwing facts at a troll. That makes them shrink and disappear!
Why don’t you point out that the union in Millinocket and East Millinocket negotiated the wages for the highest paid paper workers in the state and the employers invested elsewhere where labor costs were lower ! You’d think that the papermakers union was for all the paperworkers in the state. Perhaps that’s one area the unions could improve on , if they are not united they will fall apart !
Again democrats,money,children. All the money is going to the school. Right we have all heard this one many times before.
enjoy the 1 term of this lying toad of a governor
Dream on………
oh, ok gomer
Yup, now we know. Gov. LePage kept it. Wonder what he’s doing with it: paying his daughter and his brother-in-law?
—–
LePage stands to lose every voter in Millinocket because a loss of state revenue is going to come out of every Millinocket pocket. And that simply is no buy votes.
If you don’t want to pay for your trash , just go put it on the school playground.
Millinocket should consolidate the High/junior high school and the Granite Street school even if this matter comes out in their favor. The cost of running 2 facilities when one is more than ample is just plain wasteful. And what about the raises for town employees , they work for the public , most of which are struggling to make ends meet. Mr. Clark , can’t you talk some sense into the council and school board ? Oh and by the way , I’ll vote for him again !
You have to remember vast majority of the council are Democrats, not sure about the school board lol
The loud mouth bully will become a silly lame duck after the fall elections. And all the Republicans who lose their seats can thank the fool on the hill for their ouster.
Pillar of the community…. Keep up the great work Mr. LePage…
yeah governor- we see the kind of people that support you.. i wonder what the 61% that didnt vote for him are doing tonight? counting down the days until this lying governor is gone probably (ya know , when a national business magazine calls lepage a liar, its hard to disagree
Well, we all have a choice come November if we don’t like the way things are going. If you don’t vote you must be satisfied. One thing good about what is going on is that it has made the choice very clear. No need to name call or gripe; make some changes if that is what you want. We are fortunate to live in a democracy that allows that. We are a “Can Do” state and hope we never forget that as we move ahead.
So much for children coming first for this stinky Governor.
It’s all “pie in the sky ” anyway. Our kids are getting dumber. We don’t appear to have any ideas to reverse the trends and we’re making no attempt to make changes in our school systems. Might as well throw good money after bad.
Take away the Xbox and other tech that keeps them rooted to the coach.
Who said anything about sports , don’t blame the coach blame the spelling teacher !!
Please oh please just sue the Penguin already. It is no wonder NOTHING ever gets done in the DEAD ZONE.
So did the town default on a promise or not????
He said, She said. you can go to Millinocket.org site and read the paperwork though nothing was in stone. Unfortunately the monies are 2 differnt issues. Or suppose to be.
When you are in a leadership role it is impossible to make everyone happy.I say make the hard decisions and stick by them.
Regardless of who said what or when,the fact remains.
Paul Lepage illegally got us into a $17 million dollar obligation with no way to fund it.
Then he took on a $320,000 yearly maintenance expense without getting anything in writing.
Paul Lepage, worst Governor ever.
I love Paul Lepage. cleaning up years of BALDY’S mistakes and bad debt is certainly a challenge, and I for one am prowd that he has the berries to make the tough choices. You go Paul
He goes alright… Right to Lame Duckville.
His bully tactics and oh so obvious direction coming from the Koch Brothers he continues to alienate most of Maine and even members of his own party.
When is the last time you have seen members of the GOP coming out in public in disgust and criticism against one of their own?
The best thing about LePage is that he is sealing the fate of his own party with his ignorance and tea party tirades which will be seen in the coming election when many GOP lawmakers will be gone.
Keep going Paul.. You do indeed go!
Lame duck soup for you!
The Town may need to make some tough choices as well like cutting or consolidating some of thier services with other local communites to help fund the landfill
Why should the town “make tough choices” in deference to corporate welfare? I wondered about this “deal” from the get-go. Company moves in, pays workers $11 per hour, which is supposed to fund schools, town functions AND Cate Street’s costs?
I used to work in Economic Development. How on Earth is this supposed to work? Corporations, during our post-war prosperity paid $3 in taxes for every $1 paid by a worker; today it’s $0.22 — and THEY have more of the money in this country!
“But we create jobs!!!!!!” Right. At what cost to taxpayers? How are we going to make corporations pay a decent wage, AND pay their taxes?
I’ll give 50,000 if i will get 502,000.00 in return this seems like a nobrainer but greed, I can’t imagine the town thinks the rest of the state owes them jobs every few years when the mill closes again. If this is the mentality of the reps in millinocket you may think of takeing roxannes offer.
Two completely different issues. The money on S&S is allocated, and it was around 720,000.
What is the point of “creating” $11/hour jobs, when each of those jobs costs taxpayers untold sums?
How long does Millinocket get this fund. Is it sort of like unemployment, forever.. The unions did this to themselves and the town.. When I was a contractor I did some work in Millinocket in the 80’s.. These people were the worst to work for. Always wanting extra’s for nothing. Talk about a vain bunch.. They rode high on their horse like they were the better then the rest of us. I had to stop doing work for these people.
The people who are running the town seem to have the same mentality of What can you do for us?.. Just think if the unions would have included in their contract that the Mill would invest X amount of dollars in updating the equiptment instead of year after year of large raises, the mills would be running fine today… They’re is a bunch that would say thats the owners problem to update equiptment, well I guess not.. Bucksport should be doing this in their contracts, they lost a paper macine last year because it’s not productive enough and to old.. The unions next contract should be to update that machine with a new one in order to bring that part of the mill back to life which would employ a couple hundred people… But NO they will all want Raises and triple time. Then when the mill closes they will have no one to blame but themselves.. The State will then have to give money to Bucksport and buy their landfill. It just proves Dems are Greedy and all about themselves… I’ve seen some of them destroy things instead of donating them and say I bought it and I’ll be dammed if someone gets it for free…..
Failing to invest in equipment is a failure of management not unions; middle-class wages do not “destroy” businesses or economies
You bring up an interesting point, though. You want unions to be responsible for business investment? O.K. This has been done successfully in Europe, where, by law, corporate boards of directors MUST reserve a certain portion of seats from labor and the community. If you hold them responsible for the degree of re-investment in a corporation; a public institution after all…. Then, give them the power to influence those decisions! Such a board would be less likely to liquidate, take the money and run etc.
Unions have given, given and given…. Cate Street starts new hires at $11 per hour. (Open up your wallet, taxpayer, because those families are going to be needing food stamps, Maine Care etc.) They give, hoping that shareholders will get sick of money and reinvest it. Doesn’t work that way.