Lawmakers trim proposed health care spending

HELENA – The House Appropriations Committee took its first bite out of the budget Wednesday as it chopped over $15 million from the Department of Public Health and Human Services's spending plan but purposefully avoided making final decisions to hold out for children’s health-care funding.

Committee Chairman Jon Sesso, D-Butte, said he was pleased with the initial steps made toward a structurally balanced budget.

“We made some progress today in trimming the section,” Sesso said. “Our goal is to move toward structural balance of House Bill 2.”

Although the cuts were initially approved by the committee, final decisions were saved for the end of the week. Sesso said they left this section open to see if other parts of the budget could be trimmed enough to implement the Healthy Montana Kids Act, which expands the Children’s Health Insurance Plan and Medicaid coverage.

The CHIP expansion was voted down by Republicans earlier this session because of overspending fears, and the Republican attempt to trim expenses was killed by Democrats.

Sesso said he hoped by trimming other sections of the state budget, Republicans would see there is enough room to fund the $30 million, voter-approved health-care expansion.

“If we can make progress in other programs relative to need in structural balance, we can address Healthy (Montana) Kids,” Sesso said.

Even so, Sesso said the committee made progress by cutting over $15 million from the budget.

The committee cut the state’s $10 million overtime and holiday pay obligation and decided to fund it through the stimulus package. They also expected a $2.4 million boost in federal money for child support enforcement.

They also decided to cut Medicaid-funded organ transplants, which cost the state $2 million, as well as five jobs in the DPHH director’s office.

An area of contention was an 11-9 vote to shut down a $900,000 autism program in Bozeman. The program offers a group home for four autistic children. Rep. Penny Morgan, R-Billings, said the budget should not fund this program, because it was created outside of the Legislature’s authority.

“If the department wants to continue with these programs, I think it’s up to the department to find money in their budget,” Morgan said. She said the department should be held accountable for circumventing the Legislature’s power.

Sesso said Morgan was right to be concerned about the department’s actions, but the program should not be punished.

“It would be unfortunate if this particular service to these four children in what is an otherwise commendable program suffers because of our collective concern about the department following legislative intent,” Sesso said.

Other representatives agreed the department needed to be penalized.

“If not this, when?” said Rep. Walter McNutt, R-Sidney. “If it isn’t here, where are you going to draw the line in the sand?”

Several amendments died on party-line votes, including one that would fund current CHIP levels if the expansion is not approved by lawmakers. Rep. Dan Villa, D-Anaconda, said the bill would be a move away from fully funding the expansion.

“We were directed by a 70 percent vote to fund the Healthy Montana Kids initiative,” Villa said. “Not pro-rate it – we were told to do it.”

Another amendment to die on party lines would have provided $10,000 to Head Start programs. The final failed amendment would have provided a $4 million-base budget for non-Medicaid funded aging services, such as Meals on Wheels.

The Appropriations Committee will discuss education on Thursday and they hope to finish trimming the  state budget by the weekend.

-by CNS correspondent Molly Priddy