Cuts also impact drug costs and Head Start funding

By Susan M. Coverscover@mainetoday.com State House Bureau

AUGUSTA — Republican lawmakers in the House and Senate, despite pressure from groups opposed to MaineCare cuts, passed a budget Tuesday that eliminates health care coverage for more than 20,000 people, cuts prescription drug coverage for senior citizens and reduces funding for Head Start.

click image to enlarge

DOING BETTER: Protesters chant Tuesday as Democrat Senator Chris Johnson, of Somerville, walks to a morning session at the Statehouse. A variety of groups, united as Maine Can Do Better, chanted between the House and Senate in opposition to a proposed budget.

Staff photo by Andy Molloy

Supporters say the cuts are necessary to cover an $83 million deficit at the Department of Health and Human Services and to put the state on a more stable financial path going forward. Opponents packed the State House hallway, creating a gauntlet for lawmakers to pass through as they entered the Senate chamber. They held signs — “Working Parents Need Safe Child Care” — and chanted “you work for us!”

The Senate voted 19-16 along party lines on an initial vote and the House voted 74-69, also along party lines. More House and Senate votes are needed before the bill goes to Gov. Paul LePage for his signature.

Appropriations Committee member Sen. Roger Katz, R-Augusta, said Republicans could have passed on the problems to the next Legislature, but they felt compelled to bring Maine more in line with what’s common in other states. He said Maine spends $1,895 per MaineCare enrollee, while the national average is $1,187. MaineCare is the state’s version of Medicaid.

Also, Maine is in the top five in the U.S. in terms of the percentage of population on MaineCare, he said.

“It’s easy to say don’t cut,” he said. “It’s hard work to make targeted, precise reductions.”

After passing five previous budgets with bipartisan support, the parties split on the final budget of the year. House and Senate Democrats went on at length to decry the impact of the cuts, saying that children who benefit from Head Start, and the elderly who need help paying for prescription drugs, are going to be hurt.

“It’s a bean counter budget,” said Sen. Dawn Hill, D-York, an Appropriations Committee member. “It’s all about the numbers. It’s not about the people. It draws a line at a certain number with callous disregard for a person’s medical needs.”

Rep. Seth Berry, D-Bowdoinham, said he’s particularly concerned about cuts to Head Start and the home visitation program, which sends social workers into the homes of new parents.

“I oppose this irresponsible budget because every child in Maine deserves a good start,” he said.

The Legislature returned to Augusta on Tuesday for what’s expected to be a three-day session to finish business for the year. While the budget was the main order of business, lawmakers are also scheduled to vote this week on five separate bond bills that total more than $96 million. If approved, they will go before voters in November.

One of those who came to protest the budget was Kim Sprague of South Portland, who said she and her husband get $215 a week to help pay for childcare for their 1-year-old. She’s worried that they will lose the subsidy if the budget is approved, which means she will have to stay home to care for the child.

“If we lose the subsidy, I will not be able to work,” she said.

Rep. Lance Harvell, R-Farmington, said Democrats exaggerated the impact of the cuts, and reminded fellow House members that taxpayers are important too.

“If we continue to act in the same manner, the only thing we’re going to harm is that most endangered of species, the Maine taxpayer,” he said.

The budget:

* Reduces the number of low-income parents who receive MaineCare, which is estimated to affect 14,500 people.

* Eliminates MaineCare coverage for 19 and 20 year olds, which is about 7,000 people. The state must get federal permission to make the cut, and Republicans note that Maine is one of only 15 states to provide this type of coverage.

* Reduces funding to two programs that help senior citizens pay for medication, which will mean about 1,500 Mainers will lose coverage. The change means those with an income of more than $19,000 a year will not be eligible. This also requires federal permission.

* Cuts $2 million in state funding to Head Start, which will continue to receive more than $45 million in other state and federal money. Democrats asked how many children will be cut off from the program as a result of the cut, and Republicans said they hope administrative costs, not services to children, are reduced. Head Start officials said about 200 children will lose services as a result of the cut.

During Senate debate, Katz said Head Start is a federal program and the cut is only 7 percent of the total funding.

“If Head Start can’t serve the same population with population with a 7 percent cut, I’d be surprised,” he said.

In the House, Rep. Peggy Rotundo, D-Lewiston, said the state has enough money to get through until next year.

“This budget and these cuts are not necessary,” she said. “There is no emergency.”

The GOP budget also revives some tax cuts set aside earlier this year. It increases the pension income tax exemption from $6,000 to $10,000; gives an income tax exemption for active duty military personnel for work outside the state; and provides a sales tax exemption for commercial wood harvesting, commercial greenhouse and nursery products. All of the tax cuts would start in fiscal year 2014, and will have no impact on the current budget.

Sen. Phil Bartlett, D-Gorham, said the budget is an “attack on good, hardworking families.”

“It’s also an attack on our seniors,” he said. “It takes away their access to life-saving prescription drugs.”

Appropriations Committee Chairman Sen. Richard Rosen, R-Bucksport, said despite all of the discussion about cuts, the state has increased funding for MaineCare by $323 million in the last two years. Maine, like all states, has had to cope with the loss of federal stimulus funds that helped pay for the program during the recession, he said.

In a statement released after the vote, Senate Majority Leader Jonathan Courtney, R-Springvale, said Republicans were elected to make tough decisions.

“Difficult choices need to be made, and failure to act is not an option,” he said. “For years the Democrats have not proposed long-term solutions to this problem that threatens all state government functions.”

Susan Cover — 620-7015

http://www.kjonline.com/news/gop-approves-health-care-cuts_2012-05-15.html

scover@mainetoday.com

These office hours or “listening sessions” are being held by the Lewisto narea legislative delegation to give residents the opportunity to voice their opinions and concerns directly to their elected representatives. The meeting will be held from 11:00 am to Noon in the Couture Room on the first floor of the Lewiston Public Library.

“We will hopefully have just finished the session, and it will be an excellent time to explain what was done and answer people’s questions,” Senator Craven said.  “We’ll also have an update on the budget. It should be a great wrap-up for the session.”

The sessions are open to anyone from who would like to voice their concerns or seek assistance in dealing with state agencies.  For more information, call Senator Craven’s office at 287-1515.

“The bond bills will give our economy a much needed shot in the arm,” said Sen. Dawn Hill of York, who serves on the Appropriations committee. “In the last year, Maine people have seen a continued drain on our jobs and income. Responsible bonding is a sure-fire way to get people back to work.”

Lawmakers passed a research and development bond aimed at boosting business, creating jobs, and helping transition Maine industries and Maine’s workforce for the future. Specifically, investment in R&D will continue funding programs helping Maine turn the corner from relying on low-tech jobs toward jobs in biotech, marine science, innovative agriculture, composites and energy.

“Targeted investments in research and development are vital to long-term economic growth and job creation for this state,” said Senator Seth Goodall of Richmond. “Prosperity for our state relies on strengthening traditional Maine industries, like boat building, and expanding industries for our future.”

Other bond measures, including LD 894, a transportation bond measure, and LD 874 an educational infrastructure bond, both received overwhelmingly support.

Maine has lost more than 1,000 jobs since 2011 and was recently rated 50th for personal income growth according to the U.S. Bureau of Economic Analysis. According to Department of Labor statistics, Maine has lost 500 construction jobs from February to March this year alone.

“Mainers deserve more than lip service. We need real investments that will improve our roads, bridges, and classrooms,” said Assistant Democratic Leader Justin Alfond of Portland. “These public investments provide an opportunity to create jobs, grow our economy, and improve our state’s infrastructure.”

Two other bond measures received initial approval by the Maine Senate including a water quality and wastewater treatment bond that will help municipalities upgrade or expand essential facilities and the Land for Maine’s Future Fund bond, a fund that preserves working waterfront property and farms. Earlier today, Republican lawmakers rejected two Democratic bond proposals that would have revitalized Maine’s downtown communities and increased energy efficiency.

Alfond added that Maine voters “deserve an opportunity to decide on the investment priorities for this state”.

Fiscal experts from the Legislature’s Office of Fiscal and Program Review told lawmakers that the state had the capacity to make public investment in a bond package for voters to approve.

According to the fiscal office’s analysis, debt service payments from 2013 to 2015 will decline by nearly $30 million, lowering the state’s payments on debt and increasing the capacity to borrow. Maine has a track record of conservative bonding and has historically paid down its debt quickly. The state typically bonds for 10 years, not 20 or 30 as other states do. Debt service is typically between 4-7 percent of the General Fund.

“This budget is a sham, a shift, a shaft, and a shame for Maine people,” said Senator Dawn Hill of York who also serves on the state’s budget writing committee. “Republican lawmakers have shown a callous disregard for people’s situations and medical needs. There are better ways to make changes where we use our heart and our minds.”

In a debate that lasted for more than two hours, Democrats voiced strong opposition to the Republican budget that accepted many of Governor Paul LePage’s controversial initiatives, including cuts to programs that provide low-income seniors with affordable medicine and access to doctors, childcare for working parents, and access to health care for women and veterans.

“This is an equal opportunity budget—hurting our youngest to the oldest in our state. The lives of thousands of Maine people will be dramatically changed,” said Senator Phil Bartlett of Gorham. “This is a budget attacking our good, hard working families. It is an attack on our children—from our youngest infants who are literally saved from abuse and neglect to an attack on our young people who are trying to make their way in the world. And, it is an attack on our seniors by taking away their life-saving prescription medication.”

The GOP proposal makes the following cuts:

• Reduces access to medicine and medical care for more than 5,649 seniors, earning between $14,000 -$19,000 per year;

• Cuts funding for early childhood education programs, including HeadStart, that help working parents continue working. These cuts will result in 216 children loosing care and another 1,400 working parents losing a child care credit.

• Cuts increase the number of uninsured Mainers by thousands, shifting health care costs onto emergency rooms, hospitals, and private insurance holders.

• Cuts to funding to critical home visitation programs that flag domestic abuse for more than 1,000 families in crisis.

• Reduces funding for women’s health and family planning by $400,000.

“I don’t believe in taking away opportunities from young children and working families,” said Senator Justin Alfond of Portland who also serves as the Assistant Democratic Leader. “We should not be forcing families to decide whether to work or have safe childcare. There is no price tag for the safety of our young children.”

During the Appropriations committee work, Democrats presented an alternative proposal that makes necessary adjustments to bring the state’s budget into balance. The proposal includes cost-savings measures including managed care initiatives aimed at delivering more efficient health care services and a provider-fraud prevention program. It also increases funds to the state’s rainy day fund.

Senator Troy Jackson added, “As a state senator I did not sign up to decide who lives and who dies in this state. Depriving our neighbors, friends and family from health care and other life saving programs will hurt people who are honestly sick with no other place to turn.”

The budget will no go on to the House for a vote.

GOP-led measure would have opened flood gates for lawsuits and pit landowners against taxpayers

AUGUSTA – The Maine Senate through “indefinite postponement” rejected a controversial overhaul of regulatory land-use rules, known as the “takings” bill. If passed, LD 1810 would have allowed property owners to initiate action without going through a permitting process. There would be major uncertainty about how to determine what constitutes “suitable” use upon which a claim can be made.

“Thankfully the Republicans saw the light and gave up their fight on passing a measure that would have cost millions of dollars to Maine taxpayers,” said Senator Phil Bartlett of Gorham. “Worse, it would have hampered future legislatures from passing laws needed to protect Maine’s economy, environment, and communities.”

Democrats argued that LD 1810 would have increased lawsuits, pit landowners against taxpayers, and resulted in a financial windfall for special interest lawyers. The measure would have allowed state agencies and the courts to waive land use rules and regulations for any kind of development.

“This measure was the wrong way to address concerns with land use regulations,” said Senator Seth Goodall of Richmond. “A better approach is to make sure that we mindfully strike the right balance between protecting our natural resources while not overburdening property owners.”

The Senate ignored a bipartisan alternative, which earned the support of the majority of members vote of the state’s Judiciary Committee. The bipartisan proposal would have made last year’s Regulatory Fairness Committee a standing legislative committee. The panel would meet regularly to hear complaints about regulations and recommend legislation to address them.

“The only ones to benefit from this measure would have been the special interest lawyers and those who can afford to pay for them,” said Senator Cynthia Dill of Cape Elizabeth who also serves on the Judiciary Committee.

The Takings Study Committee Report, which showed that nearly 100 percent of permit applications to the DEP have been approved in the last 10 years.

For baseball fans, the 6 p.m. game between the University of Maine and Boston College will provide them the opportunity to see the Black Bears in action in their own backyard.

For players from both teams, the contest at Hadlock Field will afford them the chance to experience a pro atmosphere, complete with the “Maine Monster,” a replica of the famous left-field wall at Fenway Park in Boston.

“We’re really excited to play in the southern part of the state,” Maine coach Steve Trimper said. “Playing an ACC school is going to be a great challenge. Coupled with that, we’re playing at a great stadium in Hadlock Field.”

Trimper explained that the Portland game was suggested by Rep. Justin Alfond, grandson of late philanthropist and UMaine benefactor Harold Alfond, during a hockey game in Orono last season. He helped facilitate the scheduling of the contest.

Trimper said Boston College has made a two-year commitment to play UMaine in Portland.

UMaine features a handful of players from southern Maine, including freshman outfielders Scott Heath of Westbrook and Sam Balzano of Portland, the 2011 Dr. John Winkin Award winner as the state’s top senior, along with junior Robbie Trask and sophomore Steve Trask of Saco.

The Black Bears baseball team has not played at Hadlock Field since 2000, when UMaine beat the University of Massachusetts 21-8.

Tuesday’s game will serve as a tune-up of sorts for the Bears, who are trying to get into a good groove heading into next week’s America East tournament. UMaine is likely to spread its innings among a handful of pitchers, since it opens a four-game series Friday against Stony Brook at Mahaney Diamond in Orono.

Among those expected to pitch for the Bears is Heath, who was a finalist for the Winkin Award last year. The lefthander has not pitched in a game since last summer, when he underwent Tommy John surgery to repair a torn ligament in his left elbow.

Trimper said he will be limited to 30 pitches.

Saint Joseph’s heads Maine NCAA entries

Three teams from Maine have earned berths in the 56-team NCAA Division III Baseball Championship.

Saint Joseph’s College of Standish, the University of Southern Maine of Gorham and Bowdoin College of Brunswick all are headed for the eight-team regional at Eastern Connecticut State University in Mansfield, Conn.

The Monks (35-5), champions of the Great Northeast Athletic Conference, are the No. 2 seed in the double-elimination event. The field also includes the sixth-seeded Huskies (27-17), champions of the Little East Conference, along with the Polar Bears (25-18), who are an at-large pick after finishing as the runners-up in the New England Small College Athletic Conference.

Saint Joseph’s and Bowdoin will square off in a first-round game Wednesday, while Southern Maine plays plays No. 3 seed Trinity College. The Polar Bears beat the Monks 9-4 last month.

AUGUSTA – Republicans are proposing state budget cuts that would eliminate MaineCare for more than 21,000 people, end prescription drug benefits for about 1,500 elderly Mainers and reduce state funding for Head Start and other programs.

Republican and Democratic legislators parted ways Thursday on a budget that highlights the stark philosophical differences between the parties and is raising tension in an election year.

Democrats say Republicans are underestimating the extent of the proposed cuts, based on estimates they have from advocates. Republicans say agencies that receive state funds can cut administrative costs, rather than hurting children and elderly Mainers who benefit from the programs.

Republican leaders set the stage for the party-line vote by the Appropriations Committee by saying at a news conference Thursday morning that cuts to MaineCare are needed to bring Maine more in line with what other states spend.

“We are here because previous legislatures and governors have presided over an explosive, irresponsible and unaffordable expansion of MaineCare to tens of thousands of people who would not qualify for Medicaidcoverage in other states,” said Senate President Kevin Raye, R-Perry.

The cuts are part of an attempt to close an $83 million funding shortfall in the Department of Health and Human Services through June 30, 2013. Lawmakers learned last week that state revenues are up about $50 million over previous projections, leading Democrats to ask why Republicans are still pushing for significant cuts.

“Where’s the crisis?” asked Sen. Dawn Hill, D-York. “Why aren’t we looking at helping these people who need help?”

In response, Sen. Roger Katz, R-Augusta, said the state cannot continue to fund a MaineCare program that has been expanded throughout the years beyond what the state can afford.

“We can’t be all things to all people,” he said. “Increasingly, the MaineCare budget is taking up more and more of our General Fund revenue. It is preventing us from making investments that we need to make.”

Thursday’s 8-4 vote marked the first time that the Appropriations Committee, which has been meeting for 17 months, has broken along party lines on a budget.

Republicans in the House and Senate are expected to pass the budget with little or no Democratic support when the Legislature reconvenes Tuesday.

Gov. Paul LePage is happy with most of the budget, including a promise to repay more money that the state owes to hospitals, said his spokeswoman, Adrienne Bennett.

“We’re in a positive place right now,” she said. “We’re encouraged by what we’re seeing. The Republicans have stepped up and made the types of structural changes the governor wants to see.”

The budget proposal also includes tax cuts that legislators set aside earlier this year. It proposes to:

• Increase the amount of pension income that would be tax-exempt, from $6,000 to $10,000 a year.

• Give an income tax exemption to active-duty military personnel for work outside the state.

• Provide a sales tax exemption for commercial wood harvesting, and commercial greenhouse and nursery products.

All of the tax cuts would start in fiscal year 2013-14.

Democrats asked what costs will be passed on to future legislators if the tax cuts are approved. Republicans said they are counting on a projected revenue increase in future years to more than cover the cost of the tax cuts.

For example, revenues are projected to increase by nearly $27 million in fiscal year 2014-15, and the cost of the pension tax cut that year would be about $21 million, said Rep. Kathleen Chase, R-Wells.

Groups that represent the poor and women decried the proposed spending cuts as unnecessary.

The budget would cut more than $400,000 from family planning, although those services would still be supported by fees and nearly $5 million in other state and federal funds.

“The programs that were slashed today are effective, proven strategies that improve public health, reduce unwanted pregnancies, prepare young children to learn, allow low-income parents to earn a living, and support our most fragile elderly,” said Eliza Townsend, executive director of the Maine Women’s Lobby. “Cutting spending in these areas is shortsighted and fiscally irresponsible.”

Tension grew in the committee room as both sides took turns giving speeches about why they support or oppose certain cuts.

“This committee should be proud of the work it’s done in entitlement reform,” said Rep. Ken Fredette, R-Newport.

That prompted Rep. David Webster, D-Freeport, to say he’s not proud that there are waiting lists for services. “I’m not proud about the fact that people are lined up in the ER with mental health issues,” he said.

Rep. John Martin, D-Eagle Lake, said he will be glad to campaign in the fall against Republicans because of tax cuts that have been passed but not funded.

“I look forward to the campaign, running on the structural gap of the Republican Legislature,” he said. “It will be very enlightening to see candidates run for cover.”

At Thursday morning’s news conference, House Speaker Robert Nutting, R-Oakland, said Republicans will be glad to explain to voters the choices they have made as the majority party.

“We’re going to campaign on this budget,” Nutting said. “It’s the first time in a long time we’ve dealt with structural problems that pestered the Department of Health and Human Services to the point we have to revisit it year after year after year.”

The budget would largely preserve the General Assistance program, which is administered by cities and towns.

LePage issued a line-item veto of the General Assistance portions of the supplemental state budget that the Legislature passed last month, saying it did not cut the program enough. Lawmakers said Thursday that they are holding their ground on the issue.

The budget proposes to give large cities and towns an 85 percent state reimbursement for the cost of General Assistance, not the 50 percent that LePage wants. That translates into an additional $4.3 million for the program, which largely provides money for temporary housing.

Appropriations Committee Senate Chairman Richard Rosen, R-Bucksport, said Republicans and Democrats on the committee agreed they would not renegotiate General Assistance.

Bennett said the governor is disappointed, but can accept leaving General Assistance as it is for now. She said he will be back in January seeking additional cuts.

Good Morning. This is State Senator Dawn Hill from York.

This week the Republican members of the state’s budget writing committee unilaterally approved a budget that irresponsibly shifts and shafts health care costs for Maine people.

As a member of the Appropriations Committee, I can tell you that their budget is dangerous and irresponsible to Maine’s economy and Maine people. And worse, it abandons our promise to take care of our state’s vulnerable seniors, children, people with disabilities, and working families.

This budget, like many other GOP measures this session, picks winners and losers and ignores a necessary, balanced approach.

While I am a Democrat, I am also a businesswoman. I get it, that much like a business, state government also needs to look at improving efficiencies, delivery of services, and tightening its belt.

However, unlike a corporate board of directors deciding on their budget for manufacturing widgets, lawmakers in Augusta make budget decisions that impact people.

The Republican budget ignores this and is instead, extreme and will hurt thousands of Maine children, seniors, and others. To be clear, in a year’s time, Governor LePage and his legislative allies will have kicked fifty-thousand Maine people off of health care, if this budget passes.

Specifically, more than five-thousand five-hundred Maine senior citizens with incomes less than $20,000 will have reduced access to affordable medicine and medical care.

The GOP budget will hurt children and working parents by cutting funding for early childhood education programs, including HeadStart. Programs like these help working parents continue working while providing a safe learning environment for their children. It also cuts funding to critical home visitation programs that provide vital services for Maine’s most vulnerable infants and children, often flagging and preventing child abuse.

This is a budget that is based on false promises and shifts costs.

Increasing the number of uninsured Mainers by the thousands is a cost shift that will fall straight on property taxpayers, private insurance holders, and hospitals. It’s a shift and shaft that will hurt our economy and put a strain on working families.

Democrats disagree with this approach. We believe that responsible and reasonable adjustments can be made without hurting our economy or shifting costs onto more Maine people.

Much has been said about “welfare reform” and “structural change”. To be clear, the Republican budget is not welfare reform nor is it structural change. The wholesale removal of people from health care and then labeling it as some sort of structural change is simply misleading.

Republicans have approached this budget with a callousness for people and their personal, financial, and medical situations. Throwing people off of health care, eliminating programs, and cutting services does not take away need. If you are a low-income senior with high prescription costs, you will be forced to choose between paying for your medicine or your rent. Republicans are ignoring that people will continue being sick, they will continue needing their prescriptions, but now, they will have less support and fewer resources.

When asked about the impact of their budget cuts, Republican lawmakers have said they have not assessed the impact but they “hope” it will be minimal. We cannot gamble with people’s lives or base a budget on a wing and prayer—and a hope—that it will be alright.

While Republican lawmakers claim “people before politics,” it seems clear that the opposite is true. This budget is rife with politics that puts dollars ahead of people. This budget makes a calculated political choice as to which people will be casualties of this budget.

Thank you for listening. This is State Senator Dawn Hill of York. Have a good Mother’s Day weekend.

• Reduces access to medicine and medical care for more than 5,649 seniors, earning between $14,000 -$19,000 per year.
• Cuts funding for early childhood education programs, including HeadStart, that help working parents continue working.  These cuts will result in 216 children loosing care and another 1,400 losing a child care credit.
• Cuts also increase the number of uninsured Mainers by thousands, shifting health care costs onto emergency rooms, hospitals, and private insurance holders.
• Cuts to funding to critical home visitation programs that flag domestic abuse for more than 1,000 families in crisis.
• Reduces funding for women’s health and family planning by $400,000.