Friday Follies: Medicaid recommendation another swipe at McCrory and Wos

by Chris Fitzsimon, NC Policy Watch and NC SPIN panelist, January 16, 2015.

Medicaid recommendation another swipe at McCrory and Wos

A legislative subcommittee recommended this week that the state Medicaid program be taken out of the Department of Health and Human Services and set up as an independent agency.

It would be governed by its own board, appointed by the governor, with the power to make changes in benefits and reimbursement rates to medical providers, a power now reserved for the General Assembly. A WRAL story about the recommendation noted that a similar proposal enacted in Virginia has resulted in cuts to benefits and provider payments.

That’s just one of the problems with the idea that is troubling enough on its merits, or lack of them. The proposal is also another sign that legislative leaders are not too concerned about what Governor Pat McCrory and HHS Secretary Aldona Wos think.

Both have spoken out against taking Medicaid out of HHS and both have been repeatedly ignored, another message about who is really in control in Raleigh.

Silence on the Right for term limits for legislative leaders

There was an interesting omission from some of the coverage on the right-wing blogs about the opening day of the General Assembly session this week.

Senator Phil Berger was elected to his third term in charge of the Senate as President Pro Tem. Just four years ago the Pope Civitas Institute and many other conservative groups were demanding that the new Republican majority pass a constitutional amendment limiting both the Senate President Pro Tem and House Speaker to two terms in office.

They cited the long reign of Democratic Senate President Pro Tem Marc Basnight as evidence to support their demand.

Here’s what Civitas said back in September of 2011.

“Limiting the number of terms an individual can serve in a position of legislative leadership will help the General Assembly become more dynamic and diverse, by ensuring a stream of new faces to run state government and by preventing skilled politicians from monopolizing power.”

Interesting that nobody at Civitas seems too interested in the two term limit or a stream of new faces anymore, now that the Republicans are in power. Or at least they weren’t interested Wednesday when Berger was elected to his third term.

Berger and former House Speaker Thom Tillis both promised they would pass term limits for legislative leaders. The House passed a plan with the two term limit while Senate leaders wanted a limit of four terms. The two chambers couldn’t agree and there hasn’t been much discussion of the issue recently from top legislators or the conservative groups that used to think it was important.

Bizarre rationale for budget shortfall

No one disputes that state revenues are running about $200 million behind projections even taking after into account that the tax shift passed in 2013 is now expected to cost more than $700 million after initially forecast to cost roughly $500 million.

Neither Berger nor House Speaker Tim Moore seemed too worried about it at their opening day news conference this week, brushing aside questions about the shortfall. The Republican talking point is that it’s too early to be worried and that revenue collections after the April 15th tax deadline will likely make up much of the difference.

They refuse to acknowledge the role the Robin Hood in reverse tax plan adopted two years is playing in the shortfall and the looming state budget problems. And things might get much worse before they get better.

The Institute on Taxation and Economic Policy says that the final bill for the tax cuts this year could grow to more than $1 billion which could push the shortfall well above $500 million, quite a hole indeed.

The only thing stranger that legislative leaders sticking their heads in the sand about the budget problems is the rationale for the shortfall offered by Rep. Harry Warren in his latest newsletter to constituents.

Warren cited the tax changes as part of the possible reason for the shortfall but he also cited “the annual Medicaid costs overruns and fulfilling the commitment to raise teacher compensation to a minimum of $35,000.”

But Medicaid is not over budget this year, which McCrory Administration officials have been trumpeting at every opportunity. And the promise to raise starting teacher salaries again next year has nothing to do with the shortfall in the current budget year.

Warren is either confused or simply doesn’t want to acknowledge that the tax cuts are the main driving force behind the budget shortfall that is only likely to get worse.

McCrory’s odd talking point

And finally, the latest email from Governor Pat McCrory’s campaign organization includes a link to accomplishments that are part of the alleged “Carolina Comeback.” The first one listed is “making government live within its means by passing a balanced budget.”

But the state constitution requires a balanced budget. McCrory is in effect boasting about abiding by the constitution that he is sworn to uphold.

Might be time to rewrite the talking points. “Governor Pat McCrory, he is not violating the constitution.”

- See more at: http://www.ncpolicywatch.com/2015/01/16/the-follies-220/#sthash.k7hUOpoT.dpuf