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  09:43pm EDT, 07/24/08
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Appropriations Committee Passes Its Own $18.4 Billion Budget

By SUSAN HAIGH
Associated Press Writer

HARTFORD, Conn. (AP) _ The Democrat-controlled budget writing committee passed an adjusted $18.4 billion budget on Wednesday, which spends less than what had been approved for the coming fiscal year. But the new plan raised concerns from Gov. M. Jodi Rell and some lawmakers about whether the numbers add up.

Minority Republicans said they were pleased the spending plan is smaller than expected, given the looming national recession, but said they preferred to wait to support it until the state receives more conclusive revenue numbers next month.

``We're happy they are moving in the right direction, but we are also concerned about the validity of these numbers,'' said Senate Minority Leader John McKinney, R-Fairfield.

Gov. M. Jodi Rell was tougher in her criticism, accusing the majority Democrats of putting together ``a make-believe budget'' that is underfunded by about $268.5 million.

``In short, this is a budget that purports to cut spending on paper but in reality short changes our citizens,'' Rell said in a written statement. ``It will lead to hundreds of millions of dollars in deficits that will have to be resolved through devastating service cuts or significant tax increases.

``I will not allow them to lead the state down that path,'' Rell added.

The budget bill passed on a 38-16, mostly party-line vote. It will be the basis for a negotiated deal, yet to be reached between state lawmakers and Rell's office. The legislative session ends May 7.

Democrats, who said their plan spends $100 million less than Rell's budget, said they're responding to the state's shrinking revenue picture and concerns that Connecticut could eventually be hurt by the national economic downturn.

``Our budget today ... responds to a situation in the economy that's extremely uncertain. And we recognize that,'' said Rep. Denise Merrill, D-Mansfield, co-chairwoman of the legislature's Appropriations Committee. ``Fundamentally, we see our budget as an adjustment.''

She said Democrats changed less than 1 percent of the $18.5 billion budget approved last year for the 2008-09 fiscal year, which begins on July 1.

Democrats said their proposal cuts about $200 million from Rell's budget. Much of those savings come from leftover Medicaid funds and savings from re-negotiated health care contracts with state employees.

But Republicans questioned the Democrats' claim there is an extra $150 million sitting unused in state Medicaid accounts that can be spent on other programs, such as $10 million to boost staffing at nursing homes, $30 million in additional aid to cities and towns, and extra funds for nonprofit social service providers and nursing homes.

Robert Genuario, Rell's budget chief, called the Democrats' reductions ``not accurate'' and said the state needs those Medicaid funds to pay for everything from the HUSKY health insurance program for children to nursing home expenses.

``It is in many ways a 'make-believe' budget _ make believe hundreds of millions of dollars in health care costs have disappeared so you can claim to cut the budget,'' Rell said. ``The only thing real in this budget is the $189 million in new spending they have added in.''

During Wednesday's Appropriations Committee meeting, the legislature's nonpartisan Office of Fiscal Analysis said there's been tens of millions of dollars left over in state Medicaid accounts in each of the past five years. OFA also said Connecticut's nursing home census has been declining slightly in recent years because more people are using home care.

Meanwhile, House and Senate Democrats announced an agreement on a bill that will require higher staffing levels at nursing homes, increasing the current statutory minimum staff-to-patient ratio from 1.9 to 4.2 hours of care per day, as of May 2009.

Staffing level requirements haven't been updated in 25 years, and advocates have pushed unsuccessfully for legislation over the past decade.

``Every once in a while up here a dream comes true,'' said Sen. Edith Prague, D-Columbia. ``This has been a dream of mine for years, and years and years.''

But Rep. Peggy Sayers, D-Windsor Locks, the public health committee co-chairwoman, acknowledged the majority of nursing homes in Connecticut provide the 3.5 hours of care required under the bill by Oct. 1.

The Democrats' budget includes $10 million next fiscal year for the increased staffing. The change, Democrats said, is expected to increase Medicaid expenses by about $24 million each year afterward. But Genuario said it will cost about $107 million annually.

 

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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