Hello, this is Governor Janet Mills and thank you for listening.
For six years I have introduced balanced budget proposals, and with the support of the Legislature, those budgets have sent historic amounts of money back to Maine schools, and to communities, and to Maine people to create the conditions for strong economic growth.
We’ve always ended every fiscal year in the black, but this year some higher costs and the leveling off of revenues have come together to produce a tougher than usual budget environment. Maine is not alone — many states, red and blue, across the country are facing the same budget challenges.
And like other states, our budget for Medicaid, which we call MaineCare, has a gap and it’s caused by four things: 1) the Federal government required us to keep people on MaineCare during and after the pandemic; 2) there’s been an uptick in the use of health care services as more people went back to the doctor after the pandemic; 3) there’s been an increase in the cost of those medical services because of inflation; and 4) there’s a practice called “cost reimbursement” which doesn’t allow the State to control costs – something we are trying to change.
So, last month, I introduced a supplemental budget to close the MaineCare budget gap quickly, using one-time funds that we’ve got on hand to fulfill our obligation to hospitals, nursing homes, and other providers. This proposal also included funding to spray forests in northern Maine to protect against spruce budworm. As you know, spruce budworm can destroy vast swaths of our forests if not addressed.
And the budget included much-needed reforms to General Assistance or GA.
You know GA was meant to be a short-term program of last resort – something to help people pay for food and basic necessities for a limited period of time. Something to help people when they fell on hard times while they got themselves back on their feet.
But right now, GA has consistently been over budget year after year by tens of millions of dollars, most of that money going to Portland. And it has turned into long-term housing support – something it was not meant to be.
Well, when the Legislature’s Appropriations Committee took up my supplemental budget, they made a couple changes to it. They always do.
They kept the emergency funding for MaineCare and spruce budworm spraying, but they removed the reform to GA, saying that those reforms could be discussed during the biennial budget discussions.
That’s not what I would have preferred, but I was okay with the changes because, most importantly, we need to make sure hospitals, nursing homes and others get paid as we keep the GA discussion going on.
After the Appropriations Committee made those changes, they advanced the supplemental budget with the support of three Republicans who were there.
But then Republicans changed their minds, saying that those reforms to General Assistance should be included now.
Some say they’ve moved the goalposts.
Well I agree we’ve got to return General Assistance back to its original purpose, but at the same time, putting the budgets, and the patients, of many health care providers in jeopardy by holding up the supplemental budget is not the way to do it.
If the supplemental budget doesn’t pass with bipartisan, two-thirds support, which would allow it to take effect immediately, the Maine Department of Health and Human Services will be forced to cap payments owed to health care providers next month.
We must provide stability for Maine’s hospitals, nursing homes, and other health care providers, and their patients who cannot afford disruptions and delays. We must also protect our forests.
Next week, lawmakers will return to Augusta to vote again on the supplemental budget. Both sides need to enact it with 2/3 support, bipartisan support, as an emergency bill so that it can take effect immediately upon my signature. I urge them all to get together and come to agreement on the supplemental budget.
This is Governor Janet Mills and thank you for listening.