Picking the Winners and Losers…

It hasn’t been much fun at the Legislature in Augusta since the session began at the beginning of January. The budget hearings have been filled with our fellow citizens, telling their stories and the stories of their families and loved ones who will feel the impact of these proposed budget cuts.

The thing that makes it particularly hard is that nobody wants to take the responsibility for picking winners and losers. Television audiences may delight in such choices on American Idol -- but most of the elected officials in Augusta are shying away from that process. These budget realities force such choices. Governor Baldacci has proposed what is essentially a flat budget -- almost identical in total dollars when compared to the budget that passed in the first year of his administration. During the intervening eight years the rate of inflation has been cumulatively 20%, with particular spikes in the cost of health insurance which is a relatively big item for state government.

Almost half of that virtual 20% budget cut is falling in just one year -- the new budget year that will start on July 1st. As a member of the Health and Human Services Committee we are struggling with budget cuts that are essentially 10% across the board for the biggest programs such as Medicaid or MaineCare. If these cuts go through as written they would impact our hospital and several providers of vital services for some of our most vulnerable neighbors. Because of the match with federal dollars, we get two or three additional dollars for every dollar of state money. Likewise, we lose that two or three dollars every time we reduce state spending on MaineCare.

The 10% across the board cuts are a symptom of that lack of appetite to pick winners and losers. Difficult as it is, it’s an easy way out on some level. In Augusta it’s called spreading the pain, but it can sometimes be dodging the hard choices. Some programs cannot sustain those cuts and still operate, so you have to decide to let it continue along, or eliminate it completely.

Given these circumstances, some of us are stepping up to propose major program revisions, restructuring and the elimination of entire programs. That’s picking winners -- but because the money is tight -- it will inevitably mean picking some losers, too.

For example, I have been working on proposals to make our long term care system -- especially our home and community based services -- work more effectively against the backdrop of this budget realignment. The basic principle is simple -- protect direct services and the wages of the home care workers that are the heart of the programs. Everything else, even if it is a nice feature, is expendable if it is not a core service people depend upon. In a stripped down system like that, there are winners and losers compared to what we have today -- but the winners have to be the citizens who depend upon the services, the workers who care for our neighbors, and the rest of us -- the taxpayers -- who will pay the bill.

When I talk to people in the River Valley -- I hear one message loud and clear -- “We want value for our money.” We hate to part with our hard-earned money, but we sure don’t want to do it if we think it’s being wasted. We are making hard choices in this session because we want to make sure every dollar goes as far as it can.

The budget cuts are being shared, too. Municipal revenue sharing, state aid to education, reimbursement for a portion of the homestead exemption, and general assistance funds are all being reduced, and that will mean either an increase in local property taxes, or a reduction in services. That will make this year’s town meetings a little more important, so I hope everyone will come out and be heard.

This is not the last tough budget year we’ll have -- probably far from it. Our economic recovery is slow, jobs are not growing -- so it will take a while for us to see any significant economic revival. Meanwhile the state will continue to struggle to keep a balanced budget, exactly like hundreds of families in the River Valley.

I urge you to get involved. Contact me if you have ideas or concerns. I’ve heard from many area residents and I always enjoy the opportunity to talk, even when we are looking to get our hands around the fiscal mess. Unfortunately, it is time in Augusta to step up and show leadership. Well intentioned but ineffective programs must be eliminated and at the end of the process we’ll have a leaner and stronger state. Please feel free to contact me. I need your ideas and your counsel. Please get involved.