Sunday, January 25, 2004

Budget negotiations stalled

©Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

E-mail this story to a friend

 

 

AUGUSTA — Budget bargainers split at the State House on Saturday, disagreeing on options for handling Gov. John Baldacci's proposal for offsetting a $109 million shortfall. Democrats and Republicans parted ways to prepare separate revisions to the Baldacci package after Democrats demanded Maine's fledgling Dirigo Health program be declared off-limits for trimming and Republicans insisted all options remain on the negotiating table.

Baldacci, who had been pushing for a bipartisan deal this weekend, said he stood with his Democratic allies in being unwilling to touch funding to start up the state's new universal health coverage program.

"The Dirigo money is off the table," he said after Appropriations Committee members split along party lines.

Baldacci reiterated that he was prepared to put into effect immediately some Medicaid cutbacks, using administrative authority for emergency rulemaking.

"I've met with leadership. I've been very plain about getting this done or we'll move ahead on Monday," he said.

Public hearings earlier this month on the Baldacci package elicited sharp criticism from Medicaid beneficiaries and health care providers who are reimbursed for services to low-income people through the Medicaid program.

Among provisions that subsequently drew opposition from lawmakers on the Health and Human Services Committee were proposed reductions in reimbursements to pharmacists and proposed cuts in support levels for participants in a drugs for the elderly program.

Another disputed item was a provision to cut $8.5 million in hospital reimbursement rates.

"The deadline . . . is a rather artificial one," Rep. Richard Rosen, R-Bucksport, said.

A party-line split, once made formal by a committee vote, would clear the way for majority Democrats to muscle their budget revisions through the Legislature. A failure to obtain some Republican support, however, could block some elements of a new budget amendment from taking effect for 90 days.


To top of page