How to save Millions of $’s - Bond Less $

By paula sutton | Sep 13, 2018

A person asked me today how I feel about bonding to pay for certain projects and to help explain I told them this story.  When I was in my mid 20’s I bought my first  new car , a shiny dark blue Chevy Camaro and took out a 5 year loan and made monthly payments for 3 1/2 years.  My business was seasonal and at the end of summer I found myself sitting on what was a decent pile of profit considering I had worked pretty much every day from Memorial Day to Columbus Day at my roadside seafood restaurant.   Budgeting out ahead for the coming winter I realized if I paid off my car loan early I would save a few thousand dollars and promptly did so.  I will never forget the pride I felt at having known I saved myself money by simply avoiding additional  interest payments.  Maine can do the same thing.  Instead of bonding every project (just some) we ought to build the cost of more projects into the budget and NOT pay interest on them which would save us millions of dollars in interest payments. Last year alone Maine spent around 21 million in interest alone on exiting bonds.  Think what great things Maine could have done with an extra 21 million or imagine paying less in taxes.

Comments (1)
Posted by: Catherine Cooper | Sep 13, 2018 11:08

Great advice Paula, for other lawmakers to take into account!

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