AUGUSTA, Maine — Lawmakers are close to completing work on a bill that will cut more than $140 million in spending and pay the Medicaid bills for the current budget year after a day of partisan caucuses and lengthy negotiations.

“We are very close to being able to have a proposal that fully funds the shortfall for this fiscal year and send a bill upstairs [to the full Legislature] that will make sure the bills will be paid,” said Sen. Richard Rosen, R-Bucksport, the co-chairman of the Appropriations Committee. He said Saturday evening that the bill will prevent the “drastic measures” that have been mentioned by Gov. Paul LePage, such as closing schools or nursing homes.

“We have more work to do on Monday but it is my hope we can swiftly move the bill upstairs and get it to the governor for his approval,” he said.

Rosen said several of the pending proposals need to have the legal language to implement them be completed and reviewed before the panel can take a vote on including them in the budget. He said some items are complicated and have gone through several drafts.

Rep. Peggy Rotundo, D-Lewiston, the Democratic lead on the committee, agreed. She said the budget votes by the panel, some which she opposed, are all part of a compromise that eases some of the cuts in medical services while addressing the Medicaid shortfall.

“I think we have done a good job of finding other sources of revenue to take out some of the really awful cuts,” she said Saturday evening.

While LePage proposed solving the Medicaid budget shortfall entirely within the Department of Health and Human Services, lawmakers on the budget writing panel rejected that approach and developed a hybrid bill that combines dozens of separate line items in the budget proposed by the governor as well as $25 million in savings for the second year of the budget identified by the streamlining task force.

The scores of cuts in that package also provide $3.2 million in savings for the current budget year.

The task force measure has cuts ranging from under $100 in small agencies to $3.1 million in cuts to hospital reimbursements. Hospitals took a second hit in the Medicaid section of the measure tentatively approved by the panel Saturday for $10.1 million in reductions over the next two years.

“I am not going to be able to support these cuts,” Rotundo told the committee. “These cuts are just really devastating for those hospitals in the state that take a particularly large number of MaineCare members.”

MaineCare is the state’s name for the Medicaid program that provides health care for poor Mainers and is paid for by both the state and federal government. The feds pay roughly two thirds of Medicaid, so a $10 million state cut translates into a $30 million loss of funds to the hospitals.

Rotundo vowed to keep working to find alternative funding but acknowledged that will be difficult as the panel has already voted to take funds for other areas of the state budget to fund the hybrid measure.

“We are trying to find more efficient and effective ways to deliver programs and that is difficult to do,” she said.

The panel voted to apply a one percent across-the-board cut in what is called “all other” spending by state agencies. That includes meals and travel and miscellaneous office supplies, among other items. But that cut does not apply to many agencies, such as the judicial branch, the legislative branch and independent agencies like the University of Maine System.

In an emergency meeting Friday, legislative leaders voted to provide $1.4 million from the Legislature’s budget for this year to help with the Medicaid budget shortfall.

The committee also “swept” $4 million from the accounts that fund various licensing boards and regulatory agencies in the Department of Professional and Financial Regulation. Those government functions are funded through fees and assessments on banks, insurance companies and various professions, not the state general fund.

“In general, I think the theory behind the work we just did is that we were attempting to reduce government spending in those areas where we have excess balances and apply those to areas with genuine need, “said Rep. Patrick Flood, R-Winthrop, the House co-chairman of the committee.

This is not the first time an appropriations committee has taken funds dedicated for regulating a specific profession or business and used it for other purposes. It has upset those that pay those fees and assessments in the past and they are not expected to be pleased with this diverting of funds.

The panel is leaving many complicated issues such as payments to private nonmedical institutions for the second budget year bill they start work on as soon as the measure to pay the bills for this year is completed.

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44 Comments

  1. Thank God (and the Constitution writers) for the checks and balances we have in government.  Those checks and balances prevent people like Penguin from becoming dictators and insure that the world behaves rationally.

    1.      You mean the Maine State Constitution writers who put in the checks and balances of Article (9) Section (9) that says that, The  legislature will not in any manner surrender the power of Taxation?

         Its about time that we give the Governor and all the other Norguist pledge signers the boot for trying to undermine the State of Maine Government and its Constitution!

    2. What checks and balances  the Republicans are cowardly caving into the demands of the Liberals.  We are stuck with these programs that does absolutely nothing.  The Welfare Crowd is getting off  really lucky some of these folks should be losing their benefits which should have been done 20 years ago.  If we are ever to get our fiscal house in order we have to make these cuts we shouldn’t be having more than 60% of our population on Welfare and Welfare with Unemployment.   Instead we should continuing to work on making Maine more business friendly cutting spending, reducing Welfare will go along way to getting Maine into a better place down the road.

      1. From the Morning Sentinel… “Two years ago, outside money played a significant role in five Senate races. The Republican State Leadership Committee, based in Virginia, spent nearly $400,000 in the last two weeks of the election. All five Republican candidates who benefited from the independent expenditure won. Brewer said he expects more outside spending this time around.”
        That’s just in Maine. This year so far 16 billionaires have donated millions of dollars through “Super Pacs” to get a republican back in the White House. Do you really still think that the republican party cares about us in the middle class? Our only hope as a state and a country is to take both back from the rich that control the republicans. We need to vote democrat in November to render LePage and the other bought and paid for republicans powerless. The only people getting off “really lucky” are the rich folks. Why would they spend millions of dollars on republican candidates if they didn’t expect a return on their “investment”?

          1. Ok, Let’s say for argument sake, I agree with you. That’s one man supporting his wife’s bid for office. I’m talking about a segment of America’s filthy rich that are literally buying the country and state for their personal gain at the expense of everyone else. It almost sounds like a diabolical conspiracy to railroad the USA itself. And since they’re financing republicans and not democrats, I think the writing is on the wall for all of us to see. Google Super Pac and see for yourself the list of donors, the amounts they are donating, and who they’re supporting. Scary stuff for us middle class folks.

          2. Sussman is  a “Wall Street Fat Cat”.  Or have the Democrats changed their mind about how evil that cohort  is??…….Just keep us posted, please and thank you.

          3. He wasn’t supporting his wife at the time, because they were not married then.  As illegasout said, he’s Wall Street, and she could be influential in what was happening with his segment of the economy.  But, as Chellie said, ‘You can’t help who you fall in love with.’ and how happy to fall in love with people who can mutually help each other.  

          4. Wrong  he has been supporting Rochelle “Chellie” Pingree , Maine Democrats  with huge campaign donations for many years now.  He also has bought the votes on TABOR, Car Tax Reduction Referendums, School Consolidation and Casinos Referendums as well.   He is a huge donor for Maine Democrats until you get someone or a group of people who can match the money he gives to Democrats he will keep buying elections for them.

          5. “Since they’re not financing republicans and not democrats”.  Explain the Liberal Pac’s from folks  George Soros,  Bill Burton of the Obama Administration,  Donnie Sussman, Donna Brazile long time Clinton and Gore advisor,  Nancy Pelosi’s PAC,  Harry Reid’s pac,  Jon Stewart & Stephen Colbert’s pac.  Not to mention UNION bucks, AARP bucks etc..  You claim its just Republicans , you need to start paying attention because the Democrats are good at doing it too.

        1. Stop playing Class warfare is that all you liberals have is keep using the class warfare card.  Who was in power for the last 36 years in Maine until the last election the Democrats.  You can’t claim the Republicans were raising taxes, spending to unsustainable levels, borrowing hundreds of millions of dollars every year to have the money going to Welfare.
          It wasn’t the Republicans growing Welfare programs to unsustainable levels in Maine to the point our budget keeps having massive shortfalls every year.  It’s been the Democrats in Maine with their abysmal economic policies which has driven out all of our businesses, our young people and has only created 56 total net jobs over their time in power.  So stop claiming the Republicans don’t care.  They do care about getting our economy going.  It is the Liberals who keep stalling worrying their butts are going to be out the door if they kick people off of Welfare.

          1. Class Warfare??? There’s no class warfare, it’s clearly the rich against the rest of us. I am so glad you asked who was in power, though I think we have to include our sitting Governor. So let’s just go 40 years, say from January 1975 to January 2015. That would be Longley (Independent), Brennan (Dem), McKernan (Rep), King (Independent), Baldacci (D), and Lepage (Rep). Looks like 2 Repubs, 2 Dems, and 2 Independents. Pretty even playing field, I’d say. Unless you’re accusing Independents of being Dems. in disguise, you are (as usual) full of it. Nice try attempting to keep your idiot LePage out of the line up though, can’t say I blame you on that one. 
            Our businesses in Maine and across the country were allowed to flee to third world countries to utilize cheap labor by no other, than Ronald Reagan, a republican.

          2. First off King and Longley are not Independents they are Liberal Democrats who were afraid to lose in the Democrat Primary which they would have done if they ran.  To call King and Longley Independents is a disgrace to all of us like myself who are Independents and don’t want anything to do with the Liberal agenda that Maine Democrats support. 
            The Democrats created the mess Maine is in today and they are currently holding our government and Maine working people hostage.  They want the Republicans to support them in kicking the can down the road so they can continue to keep these stupid programs going that are worthless.  Maine is in “third world” status because of Democrats they are the ones who created only 56 net total jobs while in power.  They destoyed our economy, drove our businesses with high taxes, business killing and job destroying regulations.   If  Democrats were still in power and a business was to start today it wouldn’t last a year.  That is why Lepage and Republicans are trying to change things because you can’t have businesses going in a state that is dead last economically.   The Democrats would rather continue the welfare state with eventually trying to put everyone on the dole.  It doesn’t work it is time to end Welfare in Maine.

          3. You’re a broken record. You sound just like LePage. Even when you’re wrong, you insist you’re right.

      2. The problem is granting benefits in the first place.  Once people are used to not having to take care of themselves, it becomes increasingly difficult and seemingly heartless to urge them away from infantilism.  

        It is hard to let our own children stand on their own when we can see the difficulties they face.   But, good parenting requires the letting go.  Somehow we have allowed generations to get older and not mature at all.  Possibly if we could start valuing people for their accomplishments and not allowing our court jesters (actors and athletes) to frame our thinking we would become a more viable society.  As it is, we are a nation of aged teenagers screaming after rock stars and incapable of caring for ourselves and our families.

        Those of us who are so capable are being drowned by the increasing number of dependents.  Atlas better shrug darn soon!

    3. The Constitution only protects us on the Federal level.  Let us pray that we can prevent the current President from becoming a dictator.  Much more likely scenario.  You might think you would like the change to socialism that we are delving into, but it has failed everywhere.

    4. Barak Obama is doing everything in his power to do away with the very checks and balances of which you speak.  He is closer to being a dictator than any other politician in the history of this great Republic.  His appointment of Czars, imposing his will by regulatory fiat, his “recess” appointment made when the Senate was, in fact, not in recess, his abuse of the Courts to sue sovereign states, his Attorney General who refuses to prosecute criminals simply because they are “his” people (whatever the h*ll that’s supposed to mean, as “his” people are supposed to be the American people, regardless of color), his ongoing marginalization of Congress, and his refusal to obey and uphold the law of the land.  I could go on and on but you get the idea.

    1. I got a long list of names that the working class of people have listed. Want to read the list. Oh, I better not, I don’t want to sink to his level.

    2. People deserve more respect than what he gives.   He lied, during a town hall meeting, about a Forbes magazine article.   This, of course set off a series of events which culminated in Forbes Magazine completely denying any and all of what the governor said.  He also said a state representative’s participation in a very small gathering at the Blaine House regarding unemployment was BS! How much respect did he demonstrate to that rep? He wouldn’t even meet with the man.

      The Governor also decided to threaten to close schools and nursing homes if he doesn’t get a bill.  That’s political black mail.    He deserves no respect,   respect is something you earn.

    3. From the Morning Sentinel… “Two years ago, outside money played a significant role in five Senate races. The Republican State Leadership Committee, based in Virginia, spent nearly $400,000 in the last two weeks of the election. All five Republican candidates who benefited from the independent expenditure won. Brewer said he expects more outside spending this time around.”
      That’s just in Maine. This year so far 16 billionaires have donated millions of dollars through “Super Pacs” to get a republican back in the White House. Do you really still think that the republican party cares about us in the middle class? Our only hope as a state and a country is to take both back from the rich that control the republicans. We need to vote democrat in November to render LePage and the other bought and paid for republicans powerless.

      1. Candidate Ron Paul would do a fine job in the White House.
        we need a Maine candidate who believes in a similar manner.

  2. From what LePage has said in the past, I can see many aspects of this budget that he is going to hate.  However, because of the present crisis, I can certainly understand why the Appropriations Committee finds it necessary to put forth this recommendation.  The one area I am confused about is the $25 million streamlining dollars.  I thought those dollars were already used to balance the  biennial budget.

  3. Where have we seen this before . Seems it didn’t take care of the problem , just put it off for a year or two.

    1. He’ll like the idea of taking money from licensing and regulatory agencies. “Open for business” means “Open season on consumers”, “Open season on the environment”. Time for “Open season on Penguins.” Where do you think he wanted cuts to come from when he made up his bare bones budget. Schools and DHHS are just red herrings. Return sanity to the Blaine House. And for all those that want to point at Baldacci, I didn’t vote for him either time. We need people in politics who are not controlled by parties, special interests, corporations, or egos.

  4. Maine’s legislatures, in recent years, have been real good at kicking the can down the road, and worrying about the problems, “year after next”.

    “Year after next” is going to get here one of these days and I wonder what those geniuses will do then.

    Glad I am neither a state employee or a recipient of state “largesse”.

    I never trusted crooks. I feel sorry for those that have, when these chickens finally come home to roost.

  5. Ah yes, let’s cut spending on regulating insurance companies. Of course the insurance companies will deal honestly with their customers and of course, this will level the playing field because the consumer has as much information as the companies!
      The system just keeps getting more and more rigged against consumers and in favor of corporations who control the legislative process. Long live the Koch brothers! Having $40 billion, they find,  is not enough.

  6. Judging from the slanted left comments this morning, I must assume that all of the Conservatives are on the job trying to earn a living and pay taxes to support those who have nothing to do other than to critisize and promote their socialistic agenda.

  7. this should never pass, time to make the necessary cuts. when is the left going to figure out that we have no money to continue the hand outs.

  8. The cost of the Drug War is the elephant in the room.  This is a welfare program which drums up business for state workers who are on the dole.  It is extortion from taxpayers.  The DHHS shortfall of $220 billion could be covered if the war was  ended.  Peace is the answer for prosperity. Why can’t the People of Maine see this? 

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