AUGUSTA, Maine (NEWS CENTER) -- Gov. Paul LePage and Attorney General Janet Mills appear to be locked in another battle over money and control Friday.
On Thursday, the Maine Supreme Court heard oral arguments in the dispute between the governor and attorney general over the use of outside legal counsel. On that same day, the governor issued a press release criticizing the AG's handling of a $21.5 million court settlement. The AG, on behalf of the State of Maine, won the settlement against the financial rating company Standard and Poor's. Nineteen states and the Federal government had sued S&P for misleading consumers about investment ratings prior to the 2008 financial crisis. The settlement states that the Attorney General will have "sole discretion" over how the money is used. Gov. LePage said that's wrong, and said the Legislature should have control over the money, as it controls the rest of the state budget.
Attorney General Mills said the settlement language is common in consumer protection cases, and said it is also similar to a settlement made three years ago by Republican Attorney General Bill Schneider in an $8.1 million settlement of the National mortgage suit. Mills said Gov. LePage did not complain about Schneider's control of that money.
Gov. LePage was in Florida Thursday and Friday, but his press secretary said LePage believe Mills has exceeded her constitutional authority by taking control of spending, and he wants a bill passed to have the Legislature assert control.
Mills said she intends to consult with both the LePage administration and the Legislature on how to best allocate the money, but that the court settlement requires she have the ultimate authority. Mills also said she intends to form a task force to provide advice on how to use the funds to enhance consumer protection and education efforts, potentially including assistance to homeowners fighting foreclosure. Mills said the actions of S&P contributed to the national mortgage crisis that led to the 2008 recession.
The issue will now apparently be decided in the Legislature. Democratic Speaker of the House Mark Eves told NEWS CENTER the Governor's criticism is wrong, but also said the Legislature and the Governor should have a voice in how the money is spent. House GOP leader Ken Fredette and Senate President Mike Thibodeau both said they support the governor's position, but Fredette also said "we need to put political battles aside," and work for the best interests of Maine people.
Attorney General Mills said of the dispute with the governor, "I'm waiting for the phone call that just says hey thank you on behalf of the people of Maine."
