N.C. Senate painted itself into a corner on spending

Published June 3, 2014

Editorial by Fayetteville Observer, June 2, 2014.

Months of open hearings, public discussion and media analysis refine many notions that become state law. The end result may not be perfect, but this process usually yields improvements and provides transparency.

But that's not the case with some misguided legislation coming from out of nowhere in this legislative session.

The Senate passed its version of the budget last week with the late inclusion of several measures, including an overhaul of the state's Medicaid system. Between 5,000 and 15,000 elderly and disabled people would be cut from Medicaid, which would be separated from the Department of Health and Human Services.

Sen. Malcolm Graham, a Charlotte Democrat, scolded majority Republicans for this and similar maneuvers in which major policy shifts bypass the normal hearing process and are enacted with little scrutiny or feedback.

He said Republicans were instead meeting in "echo chamber" caucus, so only narrow perspectives are considered. "We are making substantial changes in how state government operates, particularly Medicaid," Graham said. "Let's have some other voices involved in that discussion."

When film studios release a movie without screening it for critics, you know it's a stinker. The Senate Medicaid shakeup is no different. The measure comes in part because senators couldn't find funds to pay for promised teacher pay increases. They had to accept several painful reductions in spending unless they were willing to admit they cut state taxes too much last year. It's a budget you write at the last second when you've painted yourself into a corner.

Sen. Ralph Hise, a Spruce Pine Republican, asserted that those losing Medicaid should be able to purchase insurance through an Affordable Care Act exchange. But they were counting on Medicaid because they can't afford insurance through the exchange and don't qualify for federal subsidies.

If the state hadn't taken the fiscally meaningless action of grandstanding against expanded Medicaid benefits, these people would have been covered with federal dollars. Now, if the House and governor go along with the Senate, many who thought they could count on the state will have no insurance at all.

The attack on Medicaid is in part disagreement with Gov. Pat McCrory's oversight of the program within DHHS, which has resulted in less budget predictability than legislators want. It's likely that a struggle of wills between the executive and legislative branches will result. We hope elderly, blind and disabled residents aren't collateral damage.

http://www.fayobserver.com/opinion/editorials/article_ba6c89a3-f4b8-5755-abc5-3c0773737498.html