Partisan disagreement stalls talks on state budget

AUGUSTA – The Legislature’s budget-writing Appropriations Committee and legislative leaders spent all weekend trying to reach a bipartisan agreement on a supplemental budget to the two-year state budget to run state government, but they left just before midnight Sunday without agreement.

“There is not enough money to do everything that people want to do,” Rep. Joe Brannigan, D-Portland, co-chairman of the panel, said. “We reached agreement on most items, but we could not reach agreement tonight.”

Sen. Richard Nass, R-Acton, one of the lead GOP negotiators, said three issues dominated the weekend talks, mostly held behind closed doors.

“We still have the same three goals, but there was not enough money to meet them,” he said. “I hope we can still reach a bipartisan agreement for a two-thirds budget, but I am not sure.”

On that point, Brannigan agreed.

In the first of the three issues that dominated the talks, GOP lawmakers insisted that the budget include $15 million for road and bridge repairs instead of the $25 million bond issue proposed by Gov. John Baldacci.

In the second, both parties want to add to the governor’s proposal to pay down a portion of the $300 million debt the state owes hospitals for unpaid Medicaid services going back several years. The governor proposed nearly $13 million that would bring in nearly $20 million in federal funds to pay part of the backlog.

Negotiators wanted to add as much as possible. But less than $15 million has been identified for use in either highways or hospitals, negotiators said, not enough to pay even the transportation portion.

The third issue involves the governor’s plan to increase teachers’ minimum salaries to $30,000 a year. GOP members suggested several alternatives that would help all teachers, such as student loan forgiveness.

In essence, the committee members and leadership involved in the talks agreed to disagree and send that issue to the full Legislature to decide.

While the budget talks were unsuccessful in reaching an accord over the weekend, dozens of spending items have been given bipartisan approval.

For example, support for additional state aid to local schools was unanimous. Under the measure, local schools will get $42 million in increased aid, bringing the state share of elementary and secondary education to 50 percent. In the next two-year budget cycle, that level is planned to rise to 55 percent.

The panel also voted $5 million in additional funds to pay for drugs not covered under the new Medicare Part D prescription drug benefit. Jude Walsh of the governor’s office of Health Policy and Finance told the panel during weekend deliberations that a significant number of Mainers are still not getting needed drugs under the federal program.

“For people who can’t afford co-pays because they live in assisted-living facilities, it’s a little more help for them in paying for the drugs they need,” she said. “There are about 5,000 people in assisted-living facilities that can’t get the drugs they need.”

The federal government does not require co-pays for residents of nursing homes but does require them for residents of assisted-living facilities. Previously, these individuals had been covered by the Medicaid program, Walsh said.

A person in an assisted-living facility paid for by Medicaid has only $40 a month in cash to cover other expenses. Walsh said she had one case where a woman was being asked for $200 in co-pays for her needed drugs.

“This appropriation provides for a program that covers the prescriptions for this group without a co-pay,” she said.

The program is not an expansion of coverage. It makes sure residents in the facilities continue to get the drugs they need.

“Claw back” payments are also in the budget for $5.9 million for this budget year and $17 million for next year. The federal government assesses the payment from every state to recoup what the states are “saving” by having seniors that were on the Medicaid program – which is paid for by the state and federal governments – on the Medicare program, which is paid for entirely by the feds.

Maine and several other states are suing over the “claw back,” arguing it is an unconstitutional tax on the states. Lawmakers expressed hope the state would prevail and save the state millions in future years.

The budget so far also includes $1 million this year and $1 million next year to help cities and towns pay for the general assistance program. Municipalities have been hit by higher than expected requests for emergency aid under the program, largely because of increased heating fuel prices.

The package also provides funding to state agencies to pay for increased energy costs for heating buildings and operating vehicles.

The committee plans to meet later today to continue talks.