Legislative panel OKs funds owed to hospitals

AUGUSTA – A key legislative committee Wednesday approved a supplemental budget for the fiscal year ending on June 30 of this year, which includes funds to help pay down a long-standing debt to Maine hospitals.

The Appropriations Committee voted unanimously in favor of budget revisions that address funding in several departments of state government, most notably funds owed to Maine hospitals stretching back to the last decade.

House Speaker Glenn Cummings said the committee was able to do its work quickly, efficiently and in a bipartisan fashion. “This sets a very good tone for the session,” the Portland Democrat said.

The supplemental budget includes $20 million in settlements under an agreement with the Maine Hospital Association. It also includes $1.8 million for the state’s share of flood relief for flooding in Canton and York County, and $3 million for the University of Maine System to create a high-speed optical network.

The supplemental budget now goes to the House and Senate for their approval. Its completion allows the Appropriations Committee to devote its full attention to Gov. John Baldacci’s proposed $6.4 billion General Fund budget for the two years starting July 1.

Meanwhile, the legislative committee that oversees Maine’s roads and bridges sent a bipartisan message to the Appropriations Committee that asks for some financial help.

The Transportation Committee voted 11-0 on Tuesday to encourage the Appropriations Committee to take the unusual step of dedicating surplus dollars in the state’s General Fund to cover funding losses in the Highway Fund.

Without the infusion of surplus funds, the roads and bridges account will have a $14 million funding reduction, according to the Transportation Committee. That would mean less money for maintenance and repairs and delays in some projects scheduled for this spring.

Sen. Christine Savage of Union, senior Republican on the committee, said she was encouraged that both parties’ committee members came together to acknowledge the need for action.

“Our roads and bridges are in a state of disrepair, and the thought of neglecting them further is very troubling,” Savage said.