“On April 1st, the state of Maine will default, it will not have money to pay the fourth quarter of 2012 Medicaid payments,” Gov. LePage said after he interrupted the work of the Legislature’s Appropriations Committee.

The state’s fiscal year begins in July giving lawmakers three months to work out the issue. LePage went on to tell legislators that their failure to cut $221 million from the budget will force him seek cuts to state education to close the gap.

“I will be calling you back and asking you to give the GPA money so that I don’t have to close nursing homes and we will probably close schools, ” he said. “Or by Feb. 1st, you give me curtailment orders so I can start saving money. This is not normal politics, this not rhetoric.”

But this issue would not be able to be classified under a curtailment order.

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Maine Can Do Better, a broad coalition of more than 150 partner organizations, held a vigil tonight before Gov. Paul LePage’s State of the State Address to draw attention to his irresponsible and dangerous budget proposals.

“We are here representing the people who cannot be here to speak for themselves. We are here because we believe Maine can do better,” said Betsey Sweet, a founding member of the Maine Can Do Better coalition. “We believe the budget proposal is irresponsible. And while some politicians only think as far as the next election, we are Mainers for the long haul. When we look at the numbers, it is clear that we don’t have a fiscal crisis, we have a priorities crisis.”

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Governor LePage’s commented at a Capitol for a Day event in Lewiston that he would have to close schools April 1, 2012, to meet the budget needs.

“It is unconscionable that the Governor is using school children as leverage for his agenda,” said Sen. Alfond. “Maine’s Constitution is clear. The Governor does not have the authority to shut down Maine’s schools.”

According to the Lewiston Sun Journal, the governor specifically said, “If the Legislature didn’t ratify his proposed budget he would be forced to close the state’s schools.”

“The governor’s statements are not accurate, and they are not helpful in solving the problems we face,” said Rep. Emily Cain, D-Orono, the House Democratic Leader. “Making dramatic statements and presenting false choices distracts from real work and creates unnecessary fear in our communities. The Appropriations Committee is working hard to make incredibly difficult choices and find alternatives to the governor’s budget. These continued distractions will not put us any closer to solving the budget challenge. We urge the governor to focus on the facts instead of drumming up fear and blame.”

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The U.S. Department of Health and Human Services (HHS) released more than $863 million in Low Income Home Energy Assistance Program (LIHEAP) assistance nationwide, including $9,995,423 for Maine.

Maine has now received $39,981,695 from LIHEAP this season, which is drastically lower than the amount it received last year. Michaud recently sent a letter to President Obama asking him to request $5.1 billion for LIHEAP’s budget next year, which is a level that would represent full funding for the program.

“This funding is needed, but it’s not enough,” said Michaud, who’s working with New England’s congressional delegation on a bill to address LIHEAP’s funding shortfall. “President Obama needs to request full funding from the start so that Congress is less likely to move forward with another deep cut to this critical program.”

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LD 1680 and 1693 are measures that will jeopardize property tax relief refund programs. Democrats are concerned that Republicans are using the specter of fraud to undermine the programs. These two bills would impose unnecessary additional burdens on applicants for refunds under the Maine Residents Property Tax and Rent Refund (Circuit Breaker) Program. These important tax relief programs help many working and poor families in Maine – pay their taxes.

“In 2010, the almost $42 million in Circuit Breaker refunds enabled families to make ends meet and seniors on fixed incomes to pay for medicine and other basic necessities,” said Maine Center for Economic Policy (MECEP) Legislative Director Dan Coyne “Recent MECEP analysis found that the 2010 Circuit Breaker refunds generated significant economic activity, including $8.4 million in health care spending, $7.3 million toward housing, $3.9 million in retail spending, and $1 million toward education. These two bills will make it more difficult for eligible taxpayers to apply for property tax relief when the Legislature should instead be strengthening and simplifying this vitally important program.”

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A letter from the nonpartisan Office of Fiscal and Program Review (OFPR) to Senate Democratic leadership confirms Democrats’ ongoing concerns that Governor LePage’s Department of Health and Human Services budget is not based on substantiated facts or data.

“It is crystal clear that the Governor’s budget doesn’t add up,” said Senate Democratic Leader Barry Hobbins of Saco. “It is frustrating that Democrats are ready to work on solving our state’s budget issues but we cannot talk about a solution if we don’t yet understand the problem. Rushing in to policy changes or program cuts without real numbers would be irresponsible.”

Highlights of the one and half page letter by Grant Pennoyer, Director of OFPR, include:

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A report on the controversial Republican health insurance overhaul shows that older Mainers and individuals and small businesses in rural areas are now paying more for insurance, while younger, healthier Mainers in urban areas are paying less as a result of the changes to the law.

“The report underscores that this law has created health care winners and losers,” said Rep. Sharon Treat, the lead Democrat on the Insurance committee. “Younger Mainers living in the south will see lower costs from the Republican plan, while older, sicker people or small businesses in rural parts of the state will literally pay the price.”

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Lawmakers on the Maine Legislature’s Health and Human Services Committee voted largely along party lines today to gut parts of the Fund for a Healthy Maine, which uses tobacco settlement money to provide preventative health care and early childhood education programs. Democrats on the committee rejected the proposal.

“Republicans rubber stamped these short-sighted irresponsible cuts,” said Rep. Mark Eves, the lead House Democrat on the Health and Human Services Committee. “The governor has given us a set of short-term solutions that will have terrible long-term costs for our state. Worse, the administration confirmed they have no plan to deal with the consequences.”

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In December attorney Joe Baldacci filed suit for Russell and Dr. Ellie Handler against officials of Maine’s Department of Health and Human Services and the Waldo County Sheriff’s Office. Almost immediately the state had the documents of the suit – which alleges DHHS and Waldo Sherriff Department negligence, misconduct and fraud – sealed.

On January 12, 2012, Baldacci filed a Motion to Unseal the suit against Maine DHHS with the US Federal Court in Portland, Maine. The State Attorney General’s Office is expected to continue to adamantly oppose any public access to information about the lawsuit.

“For us this matter has been the child welfare equivalent of a death penalty case,” stated the Handlers. “We lost our child due to negligence and wrongdoing, which we lay out in detail in the lawsuit. This case is the embodiment of why Freedom of Information Act and Sunshine in Government statutes exist. And that is why we believe there is a need for more, not less, transparency in this matter.”

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Well, I’m back from the State House, having delivered our petition directly into the hands of Representative Patrick Flood, the Chair of the Appropriations Committee, a Republican, and by all accounts a decent man. (In fact, last year the National Association of Social Workers awarded him Representative of the Year for his even-handed approach to the 2011 budget crisis.) Representative Flood and I sat down together for a few minutes before yesterday’s meeting of the Committee, and he asked me to tell him about my concerns and listened carefully to what I had to say.

I need to tell you something: I started this petition because I knew how devastating Governor LePage’s proposed cuts would be for Mainers all across the state, and I felt powerless. Now, two and a half weeks and 8732+ signatures later, I feel my hope restored.

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