Penobscot County Commissioners oppose bill allowing counties to declare bankruptcy
By Kasey Turman, Bangor Daily News Staff
Penobscot County Commissioners voted Jan. 21 not to support a bill that would allow Maine counties to declare bankruptcy.
The bill, L.D. 2009, would allow counties and municipalities to file for federal bankruptcy “upon exhausting all reasonable alternatives to avoid bankruptcy, a determination by the state auditor that the county or municipality is insolvent and approval by the county commissioners or municipal officers.”
The bill was submitted in December by Sen. Marianne Moore, R-Washington, and is co-sponsored by House Minority Leader Billy Bob Faulkingham, R-Winter Harbor; Rep. Matthew McIntyre, R-Lowell; William Tuell, R-East Machias; and Joseph Underwood, R-Presque Isle.
Washington County Commissioners voted against supporting the bill earlier this month.
The bill was introduced in response to Washington County’s ongoing financial crisis that saw the county accrue $8 million in debt through fiscal mismanagement. The county now has to pay Machias Savings Bank that full amount by Feb. 20 before it can borrow again for 2026.
Penobscot County went through a divisive budget process in 2025 because of a $7 million shortfall created by years of underfunding the county jail.
Penobscot County Commissioners Dave Marshall, Andre Cushing and Dan Tremble voted against supporting the bill because it would make it harder for the county to get the same loans it has received in the past.
“It’s been clear in discussions with our lenders that this is a cloud hanging over them,” Cushing said. “This has created a seismic shift in the lending community here in Maine and has had some impact with our lender who has been a very supportive and faithful partner over the years both to Penobscot and several other counties.”
As of Wednesday, Penobscot County has not received any bids on its $23 million budget loan that would cover the county’s expenses until municipalities pay their share of property taxes this fall. The introduction of the bill has affected lenders bidding on the county’s proposal, County Administrator Gary Lamb said on Jan. 16.
Marshall took stock in Washington County Commissioners voting against the bill despite it being introduced to help Washington County.
Tremble spoke against the bill, saying he didn’t think it would get this far because the ability to declare bankruptcy would make it harder for counties to get a loan.
“I think we need to strongly oppose this, and hopefully it can get killed in committee quickly,” Tremble said. “This is just ridiculous and I can’t believe it was even put in.”
The bill also gives elected officials the ability to more easily not deliver on what they’ve told the public would happen, Cushing said, which he personally opposes.
“As an elected official and business person, I personally don’t think it’s appropriate to allow yourself to make a promise and then give yourself an escape hatch,” Cushing said.