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RADIO RELEASE
For Immediate Release – June 13, 2005

EDITORS NOTE: This is a radio-friendly press release with links to audio clips you can download from the web. The release can also be found at: www.mainehousespeaker.org/radio

CLICK HERE FOR EXTENDED AUDIO CLIP FROM THE COMMITTEE MEETING (.mp3 file)

Democrats move ahead with plan to eliminate borrowing from budget

They reject Republican plan to remove 40,000 people from health insurance

AUGUSTA – Appropriations Committee members gave all-but-final approval Monday night to a plan to eliminate revenue bonds as a source of income in the state budget.

Democratic members of the committee drew up a list of nearly $125 million in cuts they could agree to, but rejected Republican cuts to Dirigo Health and MaineCare that would have eliminated health insurance for tens of thousands of Mainers and shifted costs to doctors and hospitals.

“Republicans proposed eliminating the non-categorical waiver, the parent waiver and also the Dirigo health program,” said Rep. Jeremy Fischer, D-Presque Isle, a member of the committee. “They would have left 40,000 people in Maine without health insurance.”

Fisher said: “Just imagine going to bed one night with health insurance and waking up the next morning without it. And that would have been something that over 40,000 people in Maine would have experienced if the Republican cuts would have gone forward.”

The supplemental budget bill, dubbed the “Part 3” budget by some State House insiders, would replace $250 million of borrowing in the budget passed by the Legislature in late March. The plan would cut future structural gaps by $200 million per year.

Democrats said the effort to remove the borrowing came in large part as a result of the economic uncertainty created by the recent threat to close three of Maine’s military bases under the BRAC process.

Sen. John Martin, D-Aroostook County, said Republican cuts would balance the budget by shifting costs to health care providers.

“They are shifting the burden to insurance carriers because people will still be treated in our hospitals because that is required by law,” Martin said. “That burden is going to be shared by all Maine people in a different way. In effect it is a tax increase just shifted differently.”

“When Maine is in a health care crisis, it hardly seems the time to be gutting the health care system,” said Speaker of the House John Richardson. “Gutting our health care system would be mean, shortsighted, and irresponsible, and it ultimately is counterproductive because we just see those costs elsewhere in higher charity care, and emergency room costs that affect all of our health insurance.”

Even with Republicans indicating they would go for the health care cuts, they were still unable to provide a tally showing $250 million of cuts, which they have said for several weeks they would do.

“We were disappointed they didn’t provide an alternative as they suggested they could,” said Senate President Beth Edmonds. “In the end, it looks like the Republicans have come to the same conclusion we have, that $250 million of straight cuts across the board are just not do-able.”

The committee is expected to meet Tuesday at noon to review and take final votes on the bill. The bill will then be drafted in final form and printed before going to the full House and then Senate for votes later this week.

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Contact:
David Connerty-Marin (Richardson) 207-287-1307 / cell: 831-3313
Roger Fenn (Edmonds) 207-287-1558 / cell: 841-5291