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Partisan division over a short-term state budget sets a terrible precedent for the much larger and difficult negotiations over a two-year budget that Maine lawmakers must pass this spring.
Further, because of the disagreement, which began last week, health care providers may have to scramble for funding next month. This is a real-world consequence of politicizing what should be a straightforward move in Augusta.
Lawmakers were considering a $121 million supplemental budget, with nearly all the money going to close a gap in MaineCare funding, caused by growth in enrollment and in the use of the state’s health insurance program for low-income people. This funding will draw nearly $300 million in federal matching funds under the Medicaid program.
The supplemental budget also includes $2 million to respond to a worsening spruce budworm infestation in Maine, which puts the state’s vast timberlands at risk.
The supplemental budget does not raise taxes or seek new revenue sources. Instead, it would allocate money they state is already receiving to these two priority areas.
Last week, the Legislature’s Appropriations Committee, the group that does the hard work of debating and negotiating budget bills, approved the supplemental budget. All 11 members of the committee who attended the meeting last Tuesday voted for it.
Committee member Rep. Ken Fredette, a Republican who represents the Newport area, did not attend the meeting to go to a sporting event instead.
The next day, he objected to the Appropriations Committee vote, which included Republican support. Rather than just registering a vote against the supplemental budget, he stoked Republican opposition to it, suggesting that his Republican colleagues on the committee simply voted for the budget because it was late at night.
Republicans then asked for additions to the budget bill, including a provision to limit general assistance benefits, and later a cost of living increase for direct care workers.
The more straightforward supplemental budget, with the MaineCare and spruce budworm funding, was passed by both the Maine House and Senate this week, but without the two-thirds votes needed to make it take effect immediately. Without two-thirds support, the budget would take effect 90 days after the Legislature adjourns in June. If those votes hold, it means that providers that accept MaineCare may see some of their reimbursements from the state withheld, beginning in March, the Maine Department of Health and Human Services has warned. The state’s largest hospital systems said such delays will exacerbate their ongoing financial challenges.
Democrats will continue to negotiate with Republicans in hopes of finally passing the supplemental budget with their support so it can go into effect immediately, avoiding delays in MaineCare payments. This is the responsible thing to do.
Because of the urgency of passing the supplemental budget, this is where Republicans have some leverage. Democrats, who narrowly control the Legislature, can pass the much larger two-year budget without any Republican votes. Democrats have passed so-called majority budgets several times in recent years. These votes have amplified criticism from Republicans in Augusta that they are left out of the budget process. They also allow Republicans to criticize Democrats for supporting runaway spending.
Republicans are rightly angry that they are sometimes left behind by Democrats, who, as the majority party, have an obligation to ensure that state funding is approved. Republicans could, however, be more productive participants in budget negotiations by coming to the table with realistic, consistent ideas, not just calls for both reducing spending and tax cuts. They could also support, not undermine, the critical work of the Appropriations Committee.
Debates over the biennial budget will be intense as there is already criticism from myriad groups about Gov. Janet Mills $11.6 billion spending proposal, which includes some cuts in services and programs along with fee increases and a $1 increase in the cigarette tax. Her budget proposal also makes investments in several areas including higher education, behavioral health, nursing homes and a new program to help residents buy mobile home parks.
Republicans have objected to the tax and fee increases and some of the spending cuts. Progressive groups have criticized program cuts and have pressed for more support for childcare workers, people who need assistance, and others, along with higher taxes on Maine’s wealthiest residents to pay for them.
At a time when there are dire needs in the state — especially around affordable housing, substance use, and childcare and education — and federal funding is uncertain, a strong case can be made for larger investments in Maine and its people, even if that involves targeted tax increases.
At the same time, putting the proposed tax increases on the backs of some of the state’s low-income earners is concerning. A fuller look at the sustainability of the growth in the state’s Medicaid program is also warranted.
That’s why a robust, open and productive debate among lawmakers of all parties is essential.
