CITIZENS   FOR  LIMITED  TAXATION  &  GOVERNMENT

 

Yet Another State Slush Fund Raided

Several lawmakers have another plan for a pool of money the governor wants to use to prop up financially strapped community hospitals and other health care providers....

The money would come from the Medical Security Trust Fund, which supplements health insurance for the unemployed. The fund now has about $125 million.

Gov. Paul Cellucci proposed using $90 million in surplus cash from the fund to be used to lend money to community hospitals, neighborhood health centers, nursing homes, home health care centers and other providers.

But the fund was generated through a tax on businesses, and some business leaders are concerned about the money being used for new purposes.

The Boston Herald
Mar. 9, 2000 (below)


What an embarrassment it must be for the Bacon Hill spendaholics. Imagine -- a $125 million pool of money stagnating in yet another slush fund that nobody apparently even knew was there! Not until Governor Cellucci proposed loaning some of it to bail out an endangered HMO.

Can you believe it, a slush fund just gathering revenue year after year, growing like a fungus in the shadows, and not a single member of the Gimme Lobby even knew it existed to be plundered? It just shows how hard it is to keep track when there are so many slush funds, so much hidden tax overpayment.

But once made aware, they've wasted no time lusting for it.

On Tuesday the governor announced its existence: the very next day the Gimme Lobby had found new "unmet needs" and grabbed for the gusto!

"The Sky is Falling"?  "We can't afford a tax 'cut'"?

Gimme a break!

CFord-Sig2.gif (4854 bytes)

Chip Ford


The Boston Herald
Thursday, March 9, 2000
Business Today

Lawmakers eye gov's hospital $$
by Jennifer Heldt Powell

Several lawmakers have another plan for a pool of money the governor wants to use to prop up financially strapped community hospitals and other health care providers.

Under a proposal to be introduced today, the lawmakers would set aside an unspecified portion of surplus cash in a fund to aid the unemployed, and dedicate the money to help cover medical costs for children with catastrophic illnesses.

Money from the Catastrophic Illness in Children Relief Fund would be available to all parents to pay bills not covered by insurance or state assistance programs, proponents said.

"From time to time it seems there are these people who have serious illnesses and it's so disruptive to the family," said Sen. Richard T. Moore (D-Uxbridge), co-chairman of the Healthcare Committee.

He plans to detail the plan today, joined by Sen. Therese Murray (D-Plymouth), co-chairwoman of the Human Services and Elderly Affairs Committee and Sen. Robert A. Bernstein (D-Worcester), co-chairman of the Insurance Committee.

The money would come from the Medical Security Trust Fund, which supplements health insurance for the unemployed. The fund now has about $125 million.

Gov. Paul Cellucci proposed using $90 million in surplus cash from the fund to be used to lend money to community hospitals, neighborhood health centers, nursing homes, home health care centers and other providers.

But the fund was generated through a tax on businesses, and some business leaders are concerned about the money being used for new purposes.

While Cellucci and legislative leaders may be at odds over use [of] that surplus, both sides hope to combine efforts to craft solutions to the crisis in health care.

Since regulators took over the state's biggest HMO, Harvard Pilgrim Health Care Inc. in January, Cellucci and legislative leaders have talked separately about setting up a health care task force. Now they are working to form a single panel.

Cellucci is working with House Speaker Thomas M. Finneran (D-Mattapan) and Senate President Thomas F. Birmingham (D-Chelsea) to come up with panel members.

Industry leaders are already being approached about serving on the panel that could be in place by the end of the month, said Cellucci spokesman John Birtwell.

"The governor and speaker are of like minds that there ought to be a committee, but how do you get a quality product out of it?" Birtwell said. "They're looking at how do you put together a committee that isn't weighted one way or the other."


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