Legislative leaders announce deal on K-12, CHIP

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – After a long night of deliberation, the Legislature's Democratic and Republican leaders announced Saturday morning that they had reached a budget compromise that would increase spending on K-12 schools and fully fund the voter-approved Healthy Montana Kids Plan.

Both parties said they compromised their priorities to get a workable budget for the next two years.

“It’s not as much as I would have hoped, but apparently it’s more than what other people would have wanted,” said House Appropriations Chairman Jon Sesso, D-Butte.

His Senate counterpart, Sen. Keith Bales, R-Otter, said the compromise would keep the budget relatively stable, but less so than he would have liked.

“I don’t think anybody got exactly what they wanted, but it’s a budget we can all live with and I hope it’s a budget we can get through the biennium (with) without having to come back,” Bales said.

Throughout the session, Democrats demanded a full expansion of the voter-approved children’s health care program. But Senate Republicans reduced the eligibility threshold because they said the program was too expensive during a recession. But Democrats accused Republicans of bucking the voters' will.

Now, both Democrats and Republicans have agreed to begin implementing the full expansion by October. However, Republicans did get something out of the deal.

When voters approved the program in the November elections, a special bank account was set up to fund the expansion. Part of the initiative said that money could not be used for anything except health insurance for children of low- and moderate-income families. Republicans worked during the session to change that law, allowing some of money to be transferred to the state checkbook for general programs.

The latest budget compromise allows half of the money in the special revenue account to be switched to the general fund. On Friday, Sesso said the expansion could still happen with less money because the program won't be at full capacity for two years anyway. Leadership said the transfer will not be permanent, and the money will be returned in four years.

Sesso said the money that would have gone into the account to help pay for budget cuts in the Department of Health and Human Services and help build a $250 million cushion for the next two years in case the economy continues to tank.

The money would also ensure another Republican priority: ensuring that state will not spend more money than it earns in the next two years.

“We trust when we’re done (we would) leave our ending fund balance at the end of 2011 to be in excess of $250 (million), and to have structural balance near zero for the second year of the biennium,” Sesso said.

But Senate Minority Leader Carol Williams, D-Missoula, expressed her disappointment at the compromise on Healthy Montana Kids. Though she was “very happy” the committee decided to give health insurance coverage to 30,000 children, she said she was troubled by the change in the funding mechanism.

“It’s kind of bizarre,” Williams said. “It’s a weird way to end the weekend.”

Education funding, another contentious issue, would also received an increase from state funds. Sesso said the state would fund a 1 percent increase in K-12 base funding and a 1 percent increase in the payment per child, with 2 percent increases the next year funded by with federal stimulus money. The following year, the state would fund 3 percent increases in both categories.

Despite the announced compromise, the governor’s budget director, David Ewer, said the executive branch could not sign off on the deal because it had yet to be included in the discussion.

“The governor’s office has not digested the proposal,” Ewer said. “I hope that’s a helpful comment – it’s reality.”

Rep. Llew Jones, R-Conrad, a member of the budget conference committee that worked out the deal, commended Sesso and Bales on their ability to compromise in the final days of the session.

“You have both adequately displayed that you’re willing to make each other bleed for your philosophies,” Jones said. “I thank you for making each other bleed but nobody bled to death.”

The exact details of the compromise were still being hammered out Saturday and were not expected to be written up and vetted until Monday morning when the committee reconvenes to take final action on the changes.

House, Senate wrestle over $8 billion budget bill

HELENA – The House today overwhelmingly rejected Senate amendments to the state budget bill, sending the budget into a special joint committee of lawmakers from both houses.

House Bill 2, the state budget bill, was heavily amended by the GOP-controlled Senate after it was approved by the House. Some of the most controversial changes included reducing the expansion for the Healthy Montana Kids Plan and decreasing the amount of state money spent on education.

Since the houses could not come to agreement on the budget, it will be sent to a free conference committee, which is a joint panel of senators and representatives charged with ironing out differences. The committee has the power to change any part of HB2.

House Speaker Bob Bergren, D-Havre, along with House Minority Leader Scott Sales, R-Bozeman, appointed four representatives to the committee: Reps. Jon Sesso, D-Butte; Cynthia Hiner, D-Deer Lodge; Llew Jones, R-Conrad; Ray Hawk, R-Florence.

The Senate members of the committee have yet to be chosen by Senate President Bob Story, R-Park City.

-by CNS correspondent Molly Priddy

When Life Gives You Lemons ...

Children sold lemonade today in the capitol during a Democratic rally urging the Legislature to fully fund the Healthy Montana Kids Plan. Approved last fall by 70 percent of Montana voters, the program was to have provided health coverage for some 30,000 additional uninsured children from low- or moderate-income families. However, the GOP-controlled Senate, citing costs, voted reduce the number of additional children served to about 15,000. (Photo by Molly Priddy)

GOP rejects pleas to restore money for CHIP, K-12

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – State senators debated a proposed state budget of nearly $8 billion Thursday, with Democrats trying and failing to insert more money for schools and for children’s health insurance.

Democrats brought amendments to change state funding in the two largest sections of House Bill 2 – health and human services and education.

Senate Minority Leader Carol Williams, D-Missoula, brought the first attempt to fully fund the Healthy Montana Kids Plan. The voter-approved children’s health insurance program expansion was reduced by Republicans who insisted on reaching “structural balance,” meaning the state should not spend more money than it earns in revenue during the next two years.

“I would like to just submit that the kids of Montana are getting sacrificed on the altar of structural balance,” Williams said. “We’re about to say on partisan vote, we don’t care what the voters said.”

Williams also said fully funding the program would provide coverage for 30,000 uninsured children. The GOP plan would cut that number in half.

But Republicans defended their position, saying they are expanding health care coverage for uninsured children from low- and moderate-income families, though not to the threshold the voters approved.

“We are not turning our back on the needy in our state,” said Sen. Dave Lewis, R-Helena. “We’re adding 15,000 children.”

The amendment failed mostly on party lines, 24-26. Sen. John Brueggeman, R-Polson, was the only Republican to vote for the full expansion.

In education, Sen. Bob Hawks, D-Bozeman, proposed raising K-12 funding to offer a 3 percent increase in schools' base budgets and 3 percent increase in per-student support. The Senate's budget committee voted earlier to limit state funding to 1 percent and 1 percent, and to use federal stimulus funds to make up the difference.

Democrats argued that the reduction would be permanent in the next biennium because stimulus dollars are one-time-only funds. Republicans said the school system needs to tighten its belt along with all other state agencies. The amendment failed, 23-27.

Democrats also failed to pass an amendment to exempt the Montana School for the Deaf and Blind from the previously agreed upon 2 percent cut across all state agencies. Sen. Mitch Tropila, D-Great Falls, asked lawmakers to consider the unique challenges these children face.

“I implore you today, please vote with your heart,” Tropila said. “Think of these kids.”

But Republicans said it would be unfair to allow one program to escape the cut.

“I realized that this is a very good school and everything. However, I think that there’s lots of other places that have good arguments too,” said Sen. Keith Bales, R-Otter. “I don’t think we can make any exceptions.”

The amendment died on party lines, 23-27. Tropila later tried similar amendments, but all failed.

Since the budget was amended and passed by the Senate, the House must agree on the amendments before it can go to the governor. However, the budget will most likely be sent to a conference committee consisting of representatives and senators charged with hashing out differences.

Demos protest GOP cuts in children's health plan

By MOLLY PRIDDY
Community News Service
UM School of Journalism

HELENA – Democratic lawmakers went on the offensive Monday, blasting Senate Republicans who recommended cuts last week in proposed funding for the voter-approved expansion of state-funded children’s health care.

“This is a travesty,” said Sen. David Wanzenried, D-Missoula. “I’m outraged about this.”

In a press conference held on the rotunda steps, 25 members of the Progressive Democratic Caucus, led by Sen. Christine Kaufmann, D-Helena, lambasted the GOP decisions to cut government services during a recession.

“These are irresponsible and cowardly actions,” Kaufmann said. “Will we choose pavement over peoples’ lives?”

The decision to cut the expansion for the Healthy Montana Kids Plan came late Friday night as the Republican-controlled Senate Finance Committee recommended cutting $120 million out of the state budget bill, House Bill 2.

Of that savings, $50 million would come from scaling back the Healthy Montana Kids Plan, according to Sen. Dave Lewis, R-Helena.

Lewis said expanding any program during a recession is dangerous for state finances, even if the federal government promises to match the state’s dollars, as it does in the children’s health insurance program.

“You still have to have the match,” Lewis said during the budget hearing. “You can go broke at a clearance sale.”

The health care expansion has been a contentious issue this session. After being approved by more than 70 percent of voters in November, the Legislature needed to grant funding authority before the program could expand to cover an estimated 30,000 uninsured Montana children.

However, Republicans in both the House and Senate have said the state can’t afford to expand that program during this economic crisis. They also said voters in November didn’t know the expansion’s true costs.

Democrats disagreed.

“Republicans said we didn’t know what we were voting for,” Kaufmann said. “Yeah, right.”

Wanzenried said that because state-funded health insurance is one of benefits of being a legislator, maybe those perks should be reduced as well.

“Half of the people in the Legislature who oppose funding it should give (up their insurance), don’t you think?” Wanzenried said.

But Senate Finance and Claims Chairman Keith Bales, R-Otter, said the budget decisions were not cuts but actually reduced increases.

“We think that it is important that the state not spend more than they’re taking in during the biennium,” Bales said. “In this time when we are faced with problems on funding, we thought it would be prudent to phase (Healthy Montana Kids) in.”

Bales also said he believes the reductions do reflect the views of the voters today. He said Montanans were more optimistic about the economy in November than they are in today’s recession. He also said he was confident the reduced expansion will still help children in need.

“If a person gets laid off or has trouble, their children will automatically qualify for CHIP,” Bales said. “The people that do need health insurance for their children will get health insurance for their children.”

As approved by voters, the expansion would have offered health coverage for children whose parents earned 250 percent of the federal poverty level, or about $50,000 for a family of four. Bales said that providing state-funded health insurance for families making $50,000 is not a priority.

The Senate amendments in HB 2 still expand the Children’s Health Insurance Plan and Medicaid, but only for those who earn 200 percent of poverty level.

In addition to recommending cuts in CHIP, Bales’ committee also voted to reduce state spending by 2 percent across the board for state agencies and use more one-time stimulus money to fund education.

Senators consider expanded funding for CHIP

HELENA – Senators got their first look this week at a bill that would provide start-up money for the voter-approved expansion of children’s health care coverage.

House Bill 157, sponsored by Rep. Chuck Hunter, D-Helena (pictured), would appropriate $2.6 million in special revenue funds to get the Healthy Montana Kids Plan started. The plan would expand coverage under Medicaid and the Children’s Health Insurance Program.

More than 70 percent of Montana voters supported the idea in November when they voted for I-155.

“It was clear Montanans wanted children to have health insurance,” Hunter told the Senate Public Health, Welfare and Safety Committee Monday.

Hunter said the $2.6 million would come from funds that were set aside when I-155 passed: $900,000 from the special revenue account and a $1.7 million federal match for the money. The HB157 money would only fund the expansion through 2009.

Right now, the state has $17 million in a special revenue fund that was set aside for the expansion after I-155 passed. Hunter said the money cannot be used for anything else and will just sit there if Healthy Montana Kids doesn’t get started.

Hunter also said the governor realized that money was being set aside when he created his budget.

“The initiative set aside this money as a particular, dedicated source of special revenue,” Hunter said.

Healthy Montana Kids has been an issue of particular partisan contention this session. Some Republicans have said the expansion is too expensive to fund during the economic downturn and should be put off for two years.

But a deadlock over whether to fully fund the program may have been broken over the weekend when Democrats and Republicans on the powerful House Appropriations Committee decided to include $35 million for CHIP in its proposed budget

The hearing for HB 157 came just before that vote. Senate Minority Leader Carol Williams, D-Missoula, said both bills are necessary to get the money flowing to an estimated 30,000 uninsured Montana children.

“You really can’t spend any money without the statute,” said.

Williams said previous legislative attempts to expand the program failed, so the voters took action.

“I’m not a big fan for initiatives that make decisions for the Legislature on how we spend our money,” Williams said. “Because of the lack of ability of the Legislature to make this happen, I support it.”

“We all know in our heart that his program is a good one,” Williams said. “It’s supported by the people and the money’s there to do it.”

Representatives from the Governor’s Office and the Department of Public Health and Human Services supported the bill, as well as the Human Rights Network, Blue Cross and Blue Shield of Montana, the Billings Clinic and the Office of Public Instruction.

There were no opponents.

At full expansion, the program is expected to cover 29,100 uninsured children in Montana. Representatives from DPHHS said if HB157 passes, children will be enrolled by October 1.

- by CNS correspondent Molly Priddy

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

Baucus plugs stimulus plan, children's health care

HELENA – U.S. Sen. Max Baucus reassured state lawmakers today that the federal stimulus package would boost Montana’s economy through shovel-ready projects that will employ 11,000 people.

“One thing is clear,” Baucus said. “The economic recovery and jobs bill provide the jolt our economy needs.”

As chairman of the Senate Finance Committee, Baucus (pictured) said he worked to make the money in the American Recovery and Relief Act available as quickly as possible to Americans.

“Not everyone agreed on the final package,” Baucus said. “Negotiations were tense at times.”

Montana will receive $626 million of the nearly $800 billion bill for education, healthcare and infrastructure projects across the state.

“It’s not perfect, but it’s necessary,” Baucus said.

Baucus also stressed the importance of the Children’s Health Insurance Plan. Earlier that day, Republican members of a key budget committee voted against a bill to fund a voter-approved expansion of the popular CHIP program.

“Children’s health insurance is not a partisan issue,” Baucus told legislators.

A CHIP expansion was approved by Montana voters this fall.

- Story by CNS correspondent Molly Priddy

Photo by Alison Smith

Republicans worry about costs of CHIP expansion

HELENA – Republican fears about costs and "socialized medicine" colored today's debate over a bill to extend health-care insurance to thousands of additional uninsured Montana children.

House Bill 157, sponsored by Rep. Chuck Hunter, D-Helena, would provide startup funding for the Healthy Montana Kids Program, a voter-approved initiative that expands eligibility for the Children's Health Insurance Program and Medicaid coverage to children of low- and moderate-income families.

The bill won initial approval by a 57-41 vote, but some Republicans argued that it was a poor fiscal decision.

“I have a really hard time with this,” said Rep. Tom McGillvray, R-Billings (pictured). “This has nothing to do with children. If you want to take one more step toward socialization, vote for this bill.”

House Speaker Bob Bergren, D-Havre, said McGillvray’s comments were proof that some House Republicans “might be out of touch with the people in Montana.” Voters approved I-155, the initiative that created Healthy Montana Kids Program, in November.

But Rep. Bob Lake, R-Hamilton, said he wasn’t sure Montanans would have voted for it if they knew it would cost $2.6 million to start up.

HB 157 would allow the Department of Health and Human Services to use money set aside in a special revenue fund to implement I-155. The initiative aims to cover 29,000 of Montana's estimated 30,000 to 34,000 uninsured children.

-by CNS correspondent Molly Priddy

Bill seeks dollars for children's health coverage

HELENA - A bill that would free up money to implement the Healthy Montana Kids Plan received strong support during its hearing on Monday.

House Bill 157, sponsored by Rep. Chuck Hunter, D-Helena (pictured), would allow the state health department to spend $2.6 million to begin implementing I-155, the voter-approved initiative to expand health coverage to children from low- and moderate-income families.

The money would be taken out of a special revenue fund that was created when the initiative was passed, Hunter told the House Appropriations Committee.

“Voters clearly want to cover these kids,” Hunter said, “even in the face of a large price tag.”

The money would be used to update Health Department computer systems, find I-155 community enrollment partners, and clarify the start-up rules regarding eligibility for the Childrens Health Insurance Program and Medicaid.

Mary Dalton, the state CHIP director, reminded lawmakers that I-155 cannot start until the expansion receives federal approval or until the federal government reauthorizes CHIP funding.

The bills supporters included the Montana Medical Association, the Montana Hospital Association, AARP, the Montana Human Rights Network, and the Montana Nurses Association.

Montana voters approved I-155 in November. The initiative would expand Medicaid and the CHIP coverage to approximately 30,000 uninsured Montana children.

-by CNS correspondent Molly Priddy