Governor: No cutting Dirigo to close deficit

Friday, March 19, 2004

By PAUL CARRIER, Portland Press Herald Writer

AUGUSTA — Gov. John Baldacci indicated Thursday he is willing to consider delaying a scheduled expansion of the Medicaid program for an unspecified period, but he would not use the resulting savings to help balance next year's budget.

The latest statement clarified comments Baldacci made Wednesday, when he told reporters he might consider holding off on adding 13,000 people to the Medicaid rolls "as part of the budget process." The state currently plans to enroll those people in Medicaid in the fiscal year starting July 1. That's when the state will launch Dirigo Health, a new program designed to expand access to health care and control health costs.

Delaying the expansion would cut the first-year cost of Dirigo Health by postponing the addition of those 13,000 people to the Medicaid program. But Lee Umphrey, Baldacci's spokesman, said Thursday Baldacci is not willing to use those savings to help eliminate a $137 million hole in the Medicaid budget.

Although the state has set aside $53 million to launch Dirigo Health, Umphrey said Thursday the governor will not divert any of that money toward filling the budget hole. The governor contends that the full $53 million is needed for Dirigo Health, so none of it should go toward balancing next year's budget.

"Dirigo (Health) is part of the solution and it needs to be protected," Umphrey said. "The governor is committed to providing affordable health care for Maine people and he doesn't want to take a step back" by dipping into the Dirigo Health fund to help balance next year's state budget.

Some Republican lawmakers have been pushing to postpone the Medicaid expansion for 18 months, arguing that the state cannot afford it and that the savings could be used to help keep the state in the black next year. Some Democratic lawmakers have countered that the state should raise taxes on cigarettes and liquor instead. Other suggestions include raising the 5 percent sales tax or applying it to some services.

After initially indicating earlier this week that he might consider tax hikes as a last resort, Baldacci said Wednesday he would veto a budget that raises taxes.

In other State House action Thursday:

By a 33-0 vote, senators approved and sent to Gov. John Baldacci a bill to give towns and cities that set up household hazardous waste collection systems priority in the awarding of grants. Environmentalists say Maine lags behind other states in setting up the programs.

The Maine Turnpike Authority will get the green light to borrow $70 million to carry out the toll highway's next five- to 10-year improvement plan if a bill that received final Senate approval Thursday is signed by the governor.

Both chambers of the Legislature have voted to allow 17-year-olds the right to vote in primaries as long as they will be 18 by the time of the general election.

The Senate voted 18-16 on Thursday in support of the measure. The House had voted 74-63 in favor Tuesday.

The change does not require an amendment to the state constitution because voting in the general election is unaffected, but it does need the governor's approval. The measure was originally proposed by Rep. Glenn Cummings, D-Portland.

The state Senate confirmed the reappointment of Alessandro Iuppa as state insurance superintendent.

The Senate also confirmed Jadine O'Brien of Portland for membership on the Maine Human Rights Commission.

The Associated Press contributed to this report.

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