Be sure to monitor this site for information on key legislative issues. This site will be updated as issues are identified and reported by news sources.
State Budget Shortfall Grows
The figures, released by the Department of Revenue last week show that the state took in $3 billion in General Fund dollars last month. That is $941.5 million, or about 24.2 percent, less than anticipated. Previous estimates put the projected fiscal-year shortfall at $2.3 billion, but lawmakers said they now expect a deficit of $2.6 - $3 billion by June 30.
In response, Pennsylvania expects to have two competing proposed budgets to make these negotiations even more challenging. House Appropriations Committee Chairman Dwight Evans, D-Philadelphia, introduced the governor’s $28.9 billion proposed budget plan Friday as a starting point for discussion. But Senate Republicans say they will be introducing their own budget proposal as soon as next week based on $27.2 billion in revenue.
The Governor has pointed to the Rainy Day Fund and the Healthcare Provider Retention Account (HCPRA) as ways to close the growing revenue gap. Meanwhile HAP continues negotiations with the Rendell administration to ensure that sufficient HCPRA funds are available to address outstanding and future liability costs. Additionally, the Governor has subtly been referencing Pennsylvania’s personal income tax as another key source of revenue.
Federal Healthcare Reform Update
Sen. Max Baucus recently convened a Roundtable to discuss and hear key informant ideas about how to expand access to healthcare benefits. Baucus has stated that a government -run insurance plan is not his first choice approach, preferring to focus instead on the system for self-insured companies. His emphasis would be to:
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focus on preserving the insurance system for self-insured companies while expanding private insurance and public programs such as Medicaid.
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to make substantial changes to the insurance market, but with the goal of letting those who have insurance that they like keep it.
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set up a system similar to Massachussetts that would be based on a national marketplace model with a common national benefits standard across all states.
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reform the health care insurance market by eliminating insurance companies’ ability to deny coverage based on pre-existing conditions, along with other changes like guaranteeing people’s ability to buy coverage.
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revamp health care payment systems like Medicare so they foster more efficient payment trends. This means bringing high-cost areas more in line with the country’s more efficient regions.
Federal Budget Update
Last week budget conference committee negotiators reached an agreement on a $3.5 trillion fiscal year 2010 budget resolution that includes budget reconciliation as a means of passing health reform legislation. Under the agreement, Congress would have until Oct. 15 to pass deficit-neutral health care reform legislation. If no measure is passed, deficit-neutral health care overhaul legislation could be attached to the budget reconciliation bill.
Please contact Jo Ann Lawer at 544-4292, Director, Government Affairs, if you have questions or would like additional information about public policy issues.