LD 149 LR 922(01)
An Act To Authorize a General Fund Bond Issue To Provide Student Debt Forgiveness To Support Workforce Attraction and Retention
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Sen. Libby of Androscoggin
Committee: Innovation, Development, Economic Advancement and Business
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Current biennium cost increase - General Fund
Bond Issues Term (years) Principal Rate (%) Interest Total Cost
General Fund - Taxable 10 $250,000,000 4.75% $65,312,500 $315,312,500
Referendum Costs Month/Year Election Type Question Length
Nov-19 General Bond Issue Standard
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November.  If the number or size of the referendum questions requires production and delivery of a second ballot, an additional appropriation of $107,250 may be required.
Fiscal Detail and Notes
This legislation establishes the Maine Student Loan Debt Relief Program, administered by the Finance Authority of Maine (FAME), to provide for the payment of student loan debt to individuals who agree to live and work in Maine for at least 5 years and to reimburse employers in the State that make student loan debt payments on behalf on their employees who also make the commitment to live and work in the State for at least 5 years.  The bill also establishes the Maine Student Loan Debt Relief Fund as a nonlapsing fund within FAME from which the payments are made.  If approved by the voters, proceeds from a General Fund bond issue of $250,000,000 will be used to capitalize the fund.  Because this legislation provides that FAME may use money credited to the fund for its administrative costs, no General Fund appropriation to FAME is required.