Governor touts health care reform record, sidesteps stimulus reup question

Gov. Jim Douglas, Feb. 18, 2010

Douglas presser 2/18, Part 1

Governor to advance health care reform at National Governor’s Association meeting

Gov. Jim Douglas told reporters at his weekly press conference Thursday that he would be touting Vermont’s health care successes at the National Governor’s Association meeting this weekend in Washington, D.C.

Douglas chairs the association. He said he would be highlighting Vermont’s leadership in the health information technology at the State Alliance for E-Health meeting, which preceded the association conference.

He said the conference gives him an opportunity to highlight the work of Vermont Information Technology Leaders, a nonprofit group that has designed an electronic prescription system for medical providers. VITL recently received $7.8 million in federal funding.

“Since I’ve chaired the association, I have advanced health care reform as one of my principal initiatives,” Douglas said. “Last July, we thought Congress would move reform forward. Health care reform is happening – it’s happening in the states.”

Douglas says he’s seeking one-time stimulus funding for state’s neediest citizens; officials announce Medicaid money would be used for capital expenditures instead

Douglas is meeting with President Barack Obama on Monday to address the “massive budget challenges” states face.

“We can’t afford more unfunded mandates from Washington,” Douglas said. “When money comes with too many strings, it doesn’t help us solve our deficits.”

A reporter asked Douglas if he would ask the president for a second stimulus.

Douglas’ answer was yes and no. He referred to a letter the National Governors Association sent to congressional leaders asking them to extend the federal matching funds, known as FMAP, which would bring in additional Medicaid money to the states for two additional quarters. (The funding, which was part of the original stimulus package, is set to expire at the end of December, halfway through the state’s fiscal year.) Read the letter and original press release from Douglas’ office here.

“In the same letter, we asked for more flexibility, for an end to what is called maintenance-of-effort requirements so the states can redesign their Medicaid programs to meet their unique needs,” Douglas said.

Several hours after the governor’s press conference, Rob Hofmann, secretary of the state Agency of Human Services, told lawmakers $60 million of the additional Medicaid funding from the federal government would not be used for services. Instead, the “one-time” funding would be used to build replacement facilities for the Vermont State Hospital, Hofmann said.

In the press conference, Douglas said the association “didn’t indicate whether it (the funding) should be in a stimulus package, or regular budget, but whatever vehicle he chooses we would welcome some additional support because the recession, while it’s technically over, will be felt severely by low-income families of our state.”

Several hours after the governor’s press conference, Rob Hofmann, secretary of the state Agency of Human Services, told lawmakers $60 million of the additional Medicaid funding from the federal government would not be used for services. Instead, the “one-time” funding would be used to build replacement facilities for the Vermont State Hospital, Hofmann said.

When a reporter asked at the press conference if removing the maintenance-of-effort requirement in the Medicaid funding wouldn’t create a risk that states will use that money for something else, Douglas said he trusts our policy makers “to make good choices.”

“States are facing tremendous shortfalls,” Douglas said. “We have to allow some flexibility. We have to recognize that one size doesn’t fit all. States have different ways of structuring human service programs, and the federal government would be well advised to give us that flexibility.”

Another reporter wanted to know whether the government would welcome more discretionary federal stimulus dollars, Douglas said. “More money is always helpful, but I’m conscious, and I’m sure my colleagues are, of the $12.3 trillion debt that the congress has amassed, and it’s likely to increase over the next fiscal year.

“We’re all federal taxpayers,” Douglas said. “We don’t want to pass more debt on to future generations so we have to balance the value of stimulus spending with the accumulation of debt that in the long run is not going to be good for our national economy.”

Douglas then chided the Legislature for waiting to pass a jobs bill that would tap stimulus funds that were initially made available to Vermont a year ago. He cited a list of economic development programs that have been put on hold: agricultural loans to farmers who need to buy seed, state job training programs, additional VEDA loans, advertising for the ski industry.

“I asked that it be on my desk by the end of January,” Douglas said. “That didn’t happen. I’ll ask now that it be on my desk before town meeting. … We ought to spend the money we’ve got now. I urge legislators to pass that jobs bill.”

Presser outtakes

Douglas says it’s too early for lawmakers to vote on relicensure of Vermont Yankee, 5-minute clip

Douglas says state hasn’t adequately explored alternatives to moving up the primary date, 6-minute clip

Douglas says Challenges bill should have been on his desk in January, 2-minute clip

Douglas says it’s not a good idea to change campaign finance laws in the middle of an election