NH Senate, House reach compromise, but what does the Governor think?

June 24, 2005

Leaders from the NH House and Senate reached a compromise this week on the 2006-07 state budget bills that gave everyone something to dislike. With the full House and Senate nearly certain to approve the changes on June 29, the most important remaining question is: Does Gov. John Lynch dislike the deal enough to veto it?

Child advocates got some, but not all, of what they wanted out of the compromise crafted by the conference committee:

Tobacco tax -- The 28-cent tobacco tax increase never budged. The Children's Alliance of NH promoted this tax increase for its budget and health benefits, but also asked that the state put $11 million, the amount recommended by the Centers for Disease Control, into smoking prevention and cessation programs.

Hospital outpatient provider rates -- The Senate wanted to pay hospitals $26 million less (federal and state dollars) over the biennium to care for low-income and elderly patients covered by Medicaid recipients. The compromise restores half of that money. The remainder that the state "saves" will be paid by employers and workers in higher health insurance premiums, especially for family coverage.

Family planning services -- The compromise budget cuts $300,000. Negotiators did add back $800,000 in combined federal and state funding the Senate had cut. Dept. of Health and Human Services Commissioner John Stephen had recommended a $1.1 million cut. The smaller cut will still make it difficult for poor women in some parts of NH to get family planning and health screening services.

Stephen's "spite cuts" -- The committee did not bow to Commissioner Stephen's desire to deny long-overdue rate increases to two groups -- children's group homes and home health care providers -- that are suing the state for not following its own rate-setting rules. Raises for both groups are in the budget.

GraniteCare -- This is the biggest reason the Governor would veto the budget. The conference committee loaded House Bill 691, Commissioner Stephen's GraniteCare Medicaid plan, onto the budget trailer bill (House Bill 2). HB 691 contains broad changes to the way the state pays for long-term care of elderly residents. Governor Lynch is known to dislike some of those changes and as of mid-day today (June 22) has not said whether he will veto HB 2 (or, for that matter, the original HB 691, which he has yet to sign or veto) because of them.

A couple other budget lowlights:

-- Not one dollar from the tobacco settlement will be spent on smoking prevention. It all goes into the education trust fund.

-- The small budget increase for the Healthy Kids children's health insurance program is not enough to reach and enroll the 7,000 remaining uninsured children in NH. Furthermore, the trailer bill is being used by certain Senators who dislike Healthy Kids to take swipes at it. Specifically, HB 2 creates a "Legislative Oversight Committee on Healthy Kids Corporation Reform," with no definition of what that "reform" might entail (although this year's ill-fated House Bill 690 may provide clues). It also requires any increased spending by Healthy Kinds in the next two years to be approved by the full Legislature, instead of the Fiscal Committee.

Changes made to the main budget bill, House Bill 1 by the conference committee can be compared to the Senate budget.

The House and Senate will make an up-or-down vote on the budget compromise. If passed by both bodies, it goes to the Governor for his approval or veto.