A Budget Mover

Legislators who were negotiating a supplemental budget for Maine yesterday – they were stuck on several issues, including whether to bond for highway funding and how much to pay of the anticipated debt to hospitals – had a useful way to solve some of their disagreement. State Rep. Barbara Merrill of Appleton, an independent candidate for governor, has for the last several days offered them the sort of compromise that not only brings agreement on the budget but turns the budgeting process from a contest of wills to a means for progress.

Republicans, who say they are concerned about the state’s level of debt, wanted highway funding to come from the state’s general fund. They figured the budget could afford about $15 million worth of highway work, which is $10 million less than what Democratic Gov. John Baldacci proposed for a highway bond.

Spending general fund money, however, removes all but a small amount for increasing payments to hospitals. By the end of 2007, state and federal governments would owe hospitals in Maine $300 million in Medicaid payments. Republicans have also called for this debt to paid off on time. For every $1 Maine added, Washington would contribute nearly $2, though there is an cap on the matched money, about $14 million above the contribution Maine is making now.

Rep. Merrill’s compromise had the governor’s bond go forward in exchange for his administration raising the hospital payment by another $12 million. The proposal helps both parties – Republicans would be able to claim a win on policy for hospitals; Democrats could point to the bond (Republicans have been traditional supporters of highway bonds) and a two-thirds vote.

That moves two non-earth-shaking issues along sensibly, without a protracted fight. There’s a win for the public in that, too.