Portland Press Herald / Maine Sunday Telegram
GOP budget cuts target MaineCare, state employees
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State House: Legislators want to raise MaineCare eligibility levels and cut state funding for schools.
By SUSAN M. COVER Blethen Maine News Service March 19, 2008

AUGUSTA — Republican legislators have put forth their own package of budget cuts, at least three of which would directly affect state workers.

The GOP Health and Human Services Committee members want all state workers and legislators to pay 10 percent of their health insurance premiums and to be prohibited from signing up for MaineCare.

As well, they want to eliminate state jobs that are already vacant.

And while these ideas may not provide an immediate solution -- at least partly because of employee contracts -- they are likely to be considered as the state keeps an eye on falling revenue and projections of future budget deficits.

Sen. Kevin Raye, R-Perry, and Rep. Robert Walker, R-Lincolnville, said Tuesday that their proposals provide a roadmap for long-term cuts.

"What can we do to put the state on a sounder foundation?" Raye asked.

The proposals are part of a larger list of ideas the Republicans say would more than cover the gap created by recent committee votes to reject some of Gov. John Baldacci's budget cuts.

Walker said some of Baldacci's human services proposals are too severe, and they believe there are other ways to save money. Lawmakers are trying to close a $190 million gap in the two-year, $6.3 billion state budget.

In addition to trimming state workers' benefits, Republicans want to reduce the number of people who qualify for MaineCare -- the state's Medicaid program -- by raising the income eligibility level. They also want to freeze MaineCare benefits for childless adults so state funding could be decreased as people drop from the program.

"We have not been living within our means," Walker said.

Late Tuesday, Rep. Henry Joy, R-Crystal, announced that he is sponsoring a bill to reduce the amount of money the state sends to schools. Rather than have the state work to fund 55 percent of education costs, the bill proposes to cap the state's share of education costs at 49 percent.

When it comes to health insurance, state workers help pay for dependent coverage, but the state pays the full cost for employees.

Mary Anne Turowski, political director of the Maine State Employees Association, said discussions about employee benefits are a routine part of collective bargaining. In 2007, state workers approved a contract that puts in place wages and benefits into next year.

Also, she said the state should set an example for employee coverage, not lower its standards to match what's offered elsewhere. "It's balancing the budget on state workers' backs," she said.

But Walker said everyone should be expected to sacrifice. Lawmakers could make it clear that they expect the next contract to require state employees to pay for part of their individual coverage, he said.

He noted that many people who work in the private sector contribute to their own health insurance costs.

Another concern for Republicans is the fact that an estimated 260 state employees have signed up for MaineCare rather than the state employee health insurance program. The Republicans want the state Department of Health and Human Services to examine why that's happening.

Turowski said many of those are mothers moving from welfare to work, who are eligible for one year of MaineCare, while others are state workers who are paid low enough wages to qualify for MaineCare.

By eliminating vacant positions -- there are roughly 700 -- Walker said the state could save $6 million to $10 million.

Turowski said that eliminating large numbers of open positions makes it harder on those left behind to do the work.

It also may not save as much as anticipated if it results in a lot of overtime, she said. But Walker said even if the current budget gap is closed in the next few weeks, more cuts will be needed.


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