"Real liberty is neither found in despotism or the extremes of democracy, but in moderate governments.
Alexander Hamilton

Friday, June 12, 2015

No Clear Plan in Sight for NH Medicaid Expansion

I read NH State Senator Jeannie Forrester's article in this weeks Meredith News ,where she explained how the Senate arrived at the $11.3 billion proposed budget for the next two fiscal years.  I also came upon a story on NHPR about state revenue and the impact of the proposed cuts to the business taxes.
The chart that follows is from that NHPR story. Clearly the state has a heavy reliance on business taxes to feed the general and education funds. Why then reduce revenue by cutting a tax that hasn't increased in 10 years? The answer as some speculate is that the tax cut will improve our business climate. Maybe, maybe not. The thing is, its any body's guess what effect it will have in the long run

Much easier to predict is the impact of not continuing funding of the New Hampshire Health Protection Act. Sen. Forrester's article only briefly mentions the New Hampshire Health Protection Act, which is not funded by the proposed budget. She mentions it in the next to last paragraph as something that will be handled "outside the budget process ( just as we did in the last budget.)" Translating this political speak, she is saying "we side stepped the issue because we don't know what to do about it."
How this all comes together for me, is that while we seem to have the will in NH to provide additional revenue to businesses ( around $80 million give or take) we do not have the will to include $12 million to fund Medicaid expansion beyond 2016 to benefit 40,000 plus citizens and reduce the burden on the health care system of nearly $400 million in uncompensated care.


Anonymous said...

The effort to reduce business taxes is doomed to failure. Just look what happened in Kansas where the governor and legislature cut personal and business income taxes and the increased revenue promised by the governor never materialized creating a huge financial crisis.

It is amazing how stupid our legislators have been to try this idiotic scheme.

See: http://www.wsj.com/articles/kansas-debates-sales-tax-increase-1433112359?KEYWORDS=sam+brownback

Joe Cormier/jcormier2@myfairpoint.net said...

Reducing spending lessens need for taxes!

Kansas 2013-2014 increase spending

NY Times version:

By JOHN HANNA and NICHOLAS CLAYTON | June 12, 2015 | 2:55 AM EDT

Being a genius is not a legislative requirement ... at all levels!

As a side note regarding Medicaid, Health Care, taxes etc. ...keep an eye out for the SCOTUS decision of King v. Burwell that should be coming out within the next two weeks or so. Repercussions could be large.


Terence C. Jatko said...

According to this link,aggregate state spending here in New Hampshire is about $ 4.2 BILLION. This translates to about $2.1 BILLION dollars spent annually, since the state prepares biennial budgets (that's every two years for you Moultonborough Academy grads).


In a previous post, blogger expresses concerns that a loss of $ 3.8 MILLION in business taxes will somehow have a detrimental effects on $2.1 BILLION of spending. A reduction of about 0.18 percent is going to impact education? Please!

Blogger has an interesting take on business income:"... while we seem to have the will in NH to provide additional revenue to businesses ( around $80 million give or take)... ". Allowing businesses to keep more of their own money is "providing additional revenue"? To me, this reflects to mindset that all money really belongs to government, except that which those benign souls that govern us kindly allow us to keep. Such twisted thinking results in the Brobdingnagian money pit that is Washington,DC, and on a much smaller scale, Concord. One sees this even in sleepy, placid Carroll County (see budget debacle). Nobody really knows, or perhaps even cares, what all those agencies do, but we better just keep ladling on generous amounts of taxpayer cash to keep them all going.
When is the American public going to say ENOUGH?

And the Beat Goes On said...

Thanks Joe and Terance for your comments. Helps keep it all in prospective. Washington, Concord and Moultonborough etc. will never have ENOUGH. You're right Terance it's up to the folks to NO.

Moultonborough has it's own money pit. The Town Planner said, if all 2016 department requests are accepted by the CIPC, taxpayers can expect a 29% tax increase.....OUCH!

Recreation Department alone made requests for $50,000 for a engineering and architectual study for a new 6 million dollar gym.... yes, the Recreation Department is beating the drum AGAIN, will this issue EVER go away? $55,000 for a chemical toilet at Playground Drive. Monies to reclaim States Landing Beach. Money to study the baseball field at Playground Drive. The last time a study was done at Playground Drive (for the soccer field) it cost taxpayers a half million dollars to "repair." Monies for the Pathway on Moultonborough Neck Road. There might have been more. A link of the video of the June 11th CIPC meeting with the Recreation Director can be seen on the blog. Taxpayers may want to watch the video so they know where some of their dollars are going.

Anonymous said...

NH has committed to and been approved by the Federal Government to provide Qualified Health Plans through the Medicaid program. Those at or below the designated Federal Poverty Levels (FPL) are eligible for subsidies, period. The cost of promises made exceed the balance in our checkbook. In a society that is graduating 19,000 new Medicare recipients per day between now and 2020; and should expect a large increase in recently arrived or declared recipients AND the 50,000, not 40,000, anticipated FPL New Hampshire subsidized citizens plus the declining employment opportunities because of myopic thinking about business...oh, yes. In the next five years more MDs will retire than we can produce....so much for keeping your MD and/or that your care will remain the same....fixes are possible but not in the current adversarial political climate. Folks who, however well-intentioned, know little about macroeconomics and business development should keep their opinions and minds open.

djm said...

My Moultonborough Academy graduate knows what biennial means. She also knows how to conduct herself professionally in a public forum.

“But if thought corrupts language, language can also corrupt thought.”
― George Orwell, 1984

Anonymous said...

djm, Sorry you lost me. Who are you talking about?

Anonymous said...

I suspect it references Mr. Jatko's comment about MA students not understanding the meaning of biennial. That type of commentary is insulting to the many successful MA graduates,but I doubt Mr. Jatko's apology will be forthcoming. Just ignore him.