Thrown Under The (School) Bus Posted 1/21/2009 10:26 PM CST on clarionledger.com The House of Representatives appears poised to throw Mississippi hospitals under the bus. The school bus, that is. As you recall, the 2008 Legislature adjourned knowing full well that the state had a $90 million Medicaid shortfall built into the budget, which resulted wholly from a change in Federal regulations as to how the state calculates the Medicaid match for hospitals. Upon adjournment last spring, everyone assumed the Medicaid division and the Hospital Association would agree on a formula to replace the $90 million match that the hospitals themselves collectively had paid in past years. That didn’t happen, and the ensuing stalemate led to an expensive and fruitless special session. At the eleventh hour, surprise one-time Federal money (the details aren’t important) bailed the state out, and the Legislature put off until 2009 the inevitable day of reckoning. The clamour from the McCoy House last year was that in requiring hospitals to resume paying the tax they’d always collectively paid, the Medicaid division (i.e., Governor Barbour) sought to tax "sick people," and that the state instead should raise the cigarette tax to pay the $90 million for the hospitals. The hospitals may naively have believed House Democrats virtuously waged this partisan fight for their (the hospitals’) own benefit. If so, they were wrong. The whole fuss was always about forcing Gov. Barbour to agree to a higher cigarette tax; something he already said he’d not oppose if his tax study committee recommended it (which it finally did last fall). In the 2008 special session standoff, the hospitals were simply the tool which House leaders wielded to embarrass the governor. It (the cig tax fight) was always about Haley, and never about the hospitals at all. The $90 million hospital Medicaid deficit still exists as 2009 dawns. But, nearly everyone (the governor included) now acknowledges that the cigarette tax should and will be raised. You’d guess the hospitals are happy, huh? New tax money will be available to defer the $90 million they’d otherwise have to pay themselves. Surely Mississippi hospitals can finally breathe a sigh of relief? Negatory. The worm has turned. With the national economy (and the state’s general fund revenues) decidedly in the tank, the House Democrat leadership has other ideas for the new tax revenue. According to HB 1383, passed by the Appropriations Committee Wednesday and scheduled for a vote before the full House on Thursday, $68 million of the projected new tobacco tax revenue would be used not to defray the hospitals’ Medicaid share, as legislators were told was so desperately needed in 2008, but rather to restore a 3.49 percent cut in this year’s MAEP funding made necessary because of the economic downturn. (Most other state programs were cut as much as 5%). The hospitals necessarily are left to fend for themselves -- they’ll either provide the $90 million state match on their own, or the unmatched Fed Medicaid funding will disappear, thereby deepening their plight. In any event, the hospitals’ erstwhile House friends ("Don’t tax sick people!") evidently have forsaken the cause. In fairness, there are two big variables at play here. First of all, there is the optimistic assumption among House Democrats that the new Obama administration is going to bail out the states, and that as a result, massive new "stimulus" monies will be flowing into state coffers, and that those expected millions can be used in part for Medicaid. That’s a lot of assuming, but maybe they’re right. Certainly this (a huge bailout for the states) has been proposed in Washington. I suppose the Federal taxpayer will have to weigh in at some point on the fiscal wisdom of using limitless Federal dollars (they print bills when it suits them, you know, and simply charge it to your grandchildren) to rescue state governments from any responsibility to exercise budgetary discipline. Regardless, however, this expected bailout is still very much in the planning stage; Congress has not approved it, and we don’t have any of the money yet. Furthermore, it also is a fact that the "new" tobacco monies are not in hand yet either. The scheme embodied within HB 1383 baldly assumes that the Senate will join the House in adopting a total new $1.00 cigarette tax, and that Gov. Barbour will sign this tax hike into law. Fat chance on both counts. In reality, most observers at the Capitol expect no more than roughly one-half (50 to 60 cents) of the House $1.00 cig tax proposal to ever actually become law. That would mean, of course, that HB 1383 grossly over-estimates the money available to restore MAEP funding. The bottom line is that HB 1383 is much more about posturing certain House members as loyal "pro-education" advocates than doing anything realistic or productive with respect to the budget. This essentially meaningless "feel good" bill likely will pass the House, and then die in the Senate, as it should, but with plenty of partisan chest-thumping all around in the meantime. You’d think hospital administrators at least will open their eyes and look around to wonder where their late friends all have gone. Obama had better come through for the hospitals, or they’d better come to a quick agreement with the Medicaid division, because it is painfully obvious that as far as Billy McCoy’s House is concerned, the hospitals will have to crawl out from under the (school) bus on their own.
An author and skeptic of manmade climate change says George W. Bush will leave office on January 20 with the earth's temperature cooler than when he took office in 2001.
"And now, there is $300 million dollars from sources unknown [that has] been given to Al Gore to push a climate crisis rebranding campaign," he adds. "And that's what you'll see in 2009, coordinating with an effort to impose what's called a cap-and-trade rationing scheme."