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July 28. 2012 7:54PM

State House Dome: NH awaits hospital tax return to balance budget. . . or not


 
Medicaid Enhancement Tax: Whether the state closes its fiscal 2012 books in the red or the black depends on one hospital's Medicaid Enhancement Tax returns, which as of Friday was still outstanding, sources say.

If that hospital — whose identity is confidential information by law — is one of the state's largest hospitals, such as Dartmouth-Hitchcock Medical Center, Manchester's Elliot Hospital or Concord Hospital, the state's books will likely end the fiscal year in the black, but if it is small facility, such as Cottage Hospital or New London Hospital, the budget will likely be in the red.

The state and the hospitals have had an ongoing disagreement over how much they owe for the enhancement tax, which is collected on hospital services, then used to match federal dollars and eventually returned to the state's smaller hospitals to offset the cost of services they provided to patients who did not pay for them.

The current state two-year budget slashed what is called Disproportionate Share money for hospitals and as a result, the small critical access hospitals receive money, but the larger hospitals do not.

The Medicaid Enhancement Tax was due this month to be counted toward fiscal 2012 revenues, but so far the tax has produced $24.5 million less than budget writers anticipated.

Consequently, state revenue is $8.9 million short of what lawmakers projected for the year, although the deficit or surplus will also depend on how much money state agencies spent. That figure won't be determined for several months as auditors sift through state agencies' books.

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A Little Truth in Advertising: Legislative leaders said in a news release Friday they returned $1.6 million in unspent money to the state's general fund for the recently concluded 2012 fiscal year.

That looks good, but it does not tell the whole story.

For the first time, the 2012-13 state operating budget required the legislative branch to return unspent funds, something state agencies have had to do forever.

Lawmakers tell department heads to avoid spending between 2 and 5 percent of their budgets to make it so less revenue is required to cover department expenses.

This fiscal year, budget writers are expecting about $43 million in “lapses” — money appropriated but not spent — from state agencies.

On the other hand, legislative budgets have produced a “legislative fund” of unspent money that was rolled over from year to year. Several years ago, about $4 million sat in the fund.

The current budget projected the legislative branch would not spend, or lapse, $530,000; instead, however, $640,000 was not spent, so the real savings to the general fund is more like $110,000.

When the budget writers began work, they agreed the legislative branch would reduce spending by $1 million in each fiscal year of the two-year budget, meaning budget writers never needed the $1 million in revenue, so that is truly not a savings in general funds.

That is not to say legislative budgets were not reduced; they were, as Senate President Peter Bragdon points out in thanking employees for their sacrifices to enable the savings through fewer staff members, a salary freeze and “making do with less.”

But the real savings to the general fund is far less than $1.6 million.

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New Executive Director: Cornerstone Action and Cornerstone Policy Research has a new executive director, although she will be familiar to anyone who knows the group.

Former board Chairman Shannon McGinley has become the organization's acting executive director, replacing Wendy Warcholik, whose husband accepted a position outside the state.

“Family comes first, and so we fully support Wendy's decision and wish her all the best as she moves on,” McGinley wrote in a letter to the group's supporters announcing the change in leadership.

Warcholik became the organization's executive director after Kevin Smith resigned last year to explore a run for the Republican gubernatorial nomination.

“You can rest assured that Cornerstone is more energized than ever and perfectly positioned to have a strong impact on the 2012 elections and the session that follows,” McGinley said. “Charlie (McKinney) and I are committed to working with the board and you to make sure Cornerstone continues to stand as the leading conservative force that keeps the state moving in the right direction.”

McKinney will be the board's new chairman.

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Romney Raffle: With the megabucks flowing into the political arena this year, campaigns need new and innovative ways to bring in more and more money.

The Mitt Romney Presidential Campaign is holding a raffle although it is not likely to raise the tens of millions of dollars a big fundraisers can produce.

But the raffle will draw attention because its focus is on one of the few surprises that remain in the campaign: his choice for vice president. The lucky winner will get to meet Romney and his vice presidential choice at a later date.

According to an email from the campaign, “The big announcement is getting closer! Soon everyone will know who Governor Romney selects as his running mate. And we're giving a few lucky supporters the opportunity to meet America's Comeback Team in person sometime soon.”

The deadline for entering the raffle has passed.

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Moving On: Long-time Beverage Distributors of New Hampshire lobbyist Clark Corson is hanging up his orange badge (which lobbyists must wear around the State House).

Corson has been involved with the organization for 40 years. “How can I ever thank you enough for entrusting your legislative affairs to me for the past 40 years,” he writes in a letter to organization members.

“You compensated me for living the dream and really holding the best job in our small but influential state, and I loved every minute of it.”

The biggest accomplishments he cites during those 40 years were retaining the three-tier liquor system that separates producers, distributors and retailers; defeating many attempts to pass a bottle bill; and successfully fighting increases in the beer tax.

Corson isn't going to be sitting around, however.

In June. he registered a new company with the secretary of state's Corporate Division, Get Outdoors Knowledge Outfitting LLC. Paperwork filed with the division says the company is a website/blog providing the community “with information and any and all other legal purposes.”

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Bad Timing: Another raffle is in the works to benefit conservation law enforcement activities for the Fish and Game Department, but it may be coming at the wrong time.

Under the budget knife some programs were scaled back or eliminated including the HikeSafe Program, Operation Game Thief and the Canine Search and Rescue Program.

Unlike most state agencies, the Fish and Game Department has been self-funded for many years. In other words, the fishing and hunting licenses and similar revenue pay the department's expenses. And with the tightening economy, the department has seen its revenue shrink, so anything that helps to raise money for needed programs is going to welcomed with open arms.

The Wildlife Heritage Foundation of New Hampshire and the Barn Store of New England are teaming up to raffle off 30 firearms over 30 days from Nov. 1 to Nov. 30. The Wildlife Heritage Foundation of New Hampshire is the official nonprofit partner of the Fish and Game Department and raises funds to support the department's conservation and wildlife and property management.

Among the firearms to be raffled are the Browning x-bolt Hunt, Beretta PX4, Henry H004 Golden Boy, Ruger LCR-22 and Ruger American.

However, the gun raffle comes on the heels of the movie theater massacre in Aurora, Colo., and some are bound to view it as being in bad taste so soon after the incident that killed 12 and wounded more than 50 people.

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Timing Is Everything: The governor of Colorado, John Hickenlooper, is coming to New Hampshire to address the New Hampshire Forum on the Future event “Regaining Our Nation's Competitive Economic Advantage.”

One of the nation's most popular elected leaders — besides our own Gov. John Lynch — Hickenlooper is the former Denver mayor, and he spoke eloquently about the terrible incident that befell his state.

Hickenlooper is the chairman of the Education Commission of the States, and his address will touch on how economic development and education are the leading guideposts for the nation's economic resurgence.

He is scheduled to speak Aug. 6 from 8 to 9:30 a.m. at the New Hampshire Institute of Politics at Saint Anselm College.

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More Talk About EBT: Key lawmakers met last week with Health and Human Services Commissioner Nicholas Toumpas about the electronic benefit transfer (EBT) cards that have recently received a lot of attention both in New Hampshire and across the country.

Reps. Neal Kurk and John Reagan along with House Speaker William O'Brien met with the commissioner last week. Toumpas agreed to return with a menu of options and issues so lawmakers could decide what actions they may take during the next legislative session to address some of the concerns.

The speaker wants the issue tied to the welfare fraud bill lawmakers passed last year, though it was considerably watered down from what O'Brien originally proposed.

The bill would require the department to establish an eligibility verification program for people on welfare and those applying for the program. However, the Senate changed the bill to put the onus on the vendor, who will be paid a percentage of the savings produced.

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Helping Out: A dozen good Samaritans are credited with saving the life of a five-term House member last weekend.

Rep. Mark McConkey, R-Freedom, was found Sunday afternoon slumped over in his vehicle off the side of Route 41 in West Ossipee.

Passersby stopped, flagged down others for help, and several called 911 to report the incident.

One person smashed out the passenger side window of McConkey's vehicle and with the help of others removed him from the car, which was locked with only him and his dog inside.

Bedford firefighter and EMT Rob Peters and Madison police Officer James Hayford performed CPR on McConkey, who did not have a pluse and was not breathing when he was removed from the car.

The two worked on McConkey until his pulse was restored. He was taken to Huggins Hospital, then transferred to Catholic Medical Center in Manchester, where he remained until Wednesday.

The speaker's office said McConkey is home recovering and owes his life to the goodness of strangers.

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Garry Rayno can be reached at grayno@unionleader.com

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