Michelle
01-08-2007, 12:56 PM
Health Funds at Stake, Union Keeps Watch as Spitzer Plans Cuts
By DANNY HAKIM
Published: January 8, 2007
After Gov. Eliot Spitzer delivered the first two major speeches of his administration last week, attention shifted to the work of Paul Francis, the state’s new budget director, who is putting fine print to his boss’s proposals.
With the budget due by the end of the month and health care spending a prime target for cuts, perhaps nobody is watching more closely than the politically formidable union 1199 United Healthcare Workers East.
The union has reason to pay attention. In an interview Friday, Mr. Francis, left, said, “When people hear that our Medicaid spending is so high, the general perception is that we’re offering Medicaid benefits that are way too generous.”
“In fact, much of that spending is a general subsidy to the health care industry — maybe the health care system is a better word because some of these are nonprofits — and ultimately that is a policy choice that has to be evaluated,” he said.
“I’ve been struck by how many of these real subsidies there are to particular groups, all of which are valid on their own terms, but at the end of the day the government can only afford to do so many of those without raising taxes,” Mr. Francis continued, adding that many subsidies were “not directly related to providing patient care.”
Jennifer Cunningham, political director of the union, said, “Respectfully, we have to disagree.”
“There is no such thing as a ‘general subsidy’ to the health care industry under the Medicaid program,” she said. “In order to qualify for the federal match, the Bush administration requires that states make payments to providers only for care of low-income, disabled and elderly patients who are eligible for Medicaid.”
The Spitzer administration is wary of a battle with the union, which has cultivated Senate Republicans by filling their campaign coffers. But Governor Spitzer wants to generally rein in spending.
Mr. Francis said he also wanted to put the brakes on former Gov. George E. Pataki’s unusual practice of writing legislation into the budget, which by many accounts drove the Legislature to distraction.
Careful listeners to the governor’s address to the Legislature last week took note when Mr. Spitzer said he was “sensitive to the important balance of power” in the budget-making process.
A Senate Seat Up for Grabs
The contest to replace Michael A. L. Balboni, a Nassau County Republican who gave up his State Senate seat for a post in the Spitzer administration, will be “a $3 million to $4 million race,” according to one Senate Republican aide. The special election is set for Feb. 6.
The candidates expected to emerge from the county committees are Craig Johnson, a Democratic county legislator, and Maureen O’Connell, a Republican who is the Nassau County clerk.
Senate Republicans are noted for their campaign prowess, but Senate Democrats are in some upheaval heading into this battle.
Senator Malcolm A. Smith of Queens, the new Senate minority leader, has ousted Senator Liz Krueger of Manhattan as leader of the Democratic Senate Campaign Committee, even though the party gained four seats in the 62-member Senate in the two elections she presided over. Ms. Krueger’s fortunes were not helped by her support for Senator Eric T. Schneiderman of Manhattan in his unsuccessful bid for the minority leadership.
The chairmanship will be split among three people. Senator Antoine M. Thompson of Buffalo, a freshman legislator, will be in charge of campaigns, taking a top role. Senator Diane J. Savino of Staten Island will run candidate recruitment, and Senator Jeffrey D. Klein of Westchester will handle fund-raising. Mr. Smith is also creating a board to oversee the committee, which will include Ms. Krueger and Mr. Schneiderman.
“I want to make sure we have as many members as possible engaged,” Mr. Smith said in an interview, adding that the leaders of the committee should “understand the complexity of the state. Heretofore, it’s been fragmented — upstate, downstate.”
Bucking a Party Leader
“I hope he understands that it’s business, not personal,” said Senator John J. Bonacic, a Hudson Valley Republican.
Mr. Bonacic was referring to his vocal opposition to the re-election of the Senate majority leader, Joseph L. Bruno, as temporary president of the Senate, after the revelation that Mr. Bruno’s outside consulting work is the subject of a federal investigation. Last week, Mr. Bonacic walked out of the Senate chamber rather than cast the only vote against Mr. Bruno, the state’s most powerful Republican.
Mr. Bonacic said Mr. Bruno had done nothing to make him feel unwelcome since then. “That’s behind us now,” said Mr. Bonacic, who joked that both his kneecaps and his supply of office materials remained intact.
Still, he cautioned, in politics, people never forget.
“I’m going to see how we are treated as we go forward,” he said.
He mused for a few moments, and then mentioned the recent defection of Mr. Balboni, above, which left Republicans with a slimmer 33-28 majority.
“The truth of the matter is, Senator Balboni went with Eliot Spitzer,” and not against Mr. Bruno, Mr. Bonacic said, explaining why the Bruno forces were unlikely to retaliate.
“We need each other, for the strength of the conference,” he added. “This is not the time for bloodshed.” NICHOLAS CONFESSORE
A Rocky Senate Debut
It was not, perhaps, the most auspicious beginning. More than 75 friends and associates who visited Albany on Wednesday for the swearing-in of Joseph A. Griffo, a new state senator, came down with a nasty stomach bug afterward, triggering an investigation by the state and local health departments.
“I was hoping that it wasn’t freshman hazing,” said Senator Griffo, a Republican from Rome who was previously the Oneida County executive. He said that within 24 hours of the ceremony his office began fielding calls from sickened people who had made the trip.
Marc Carey, a spokesman for the State Health Department, said that the sickness did not appear severe, but that investigators were studying whether the affected people had eaten the same food, or gotten sick some other way.
Several other people who were at the Capitol on Wednesday but who did not attend the Griffo event also reported becoming sick.
Senator Griffo added that the clergyman who had sworn him in was spared. “I think the collar may have protected him,” the senator said. MICHAEL COOPER
By DANNY HAKIM
Published: January 8, 2007
After Gov. Eliot Spitzer delivered the first two major speeches of his administration last week, attention shifted to the work of Paul Francis, the state’s new budget director, who is putting fine print to his boss’s proposals.
With the budget due by the end of the month and health care spending a prime target for cuts, perhaps nobody is watching more closely than the politically formidable union 1199 United Healthcare Workers East.
The union has reason to pay attention. In an interview Friday, Mr. Francis, left, said, “When people hear that our Medicaid spending is so high, the general perception is that we’re offering Medicaid benefits that are way too generous.”
“In fact, much of that spending is a general subsidy to the health care industry — maybe the health care system is a better word because some of these are nonprofits — and ultimately that is a policy choice that has to be evaluated,” he said.
“I’ve been struck by how many of these real subsidies there are to particular groups, all of which are valid on their own terms, but at the end of the day the government can only afford to do so many of those without raising taxes,” Mr. Francis continued, adding that many subsidies were “not directly related to providing patient care.”
Jennifer Cunningham, political director of the union, said, “Respectfully, we have to disagree.”
“There is no such thing as a ‘general subsidy’ to the health care industry under the Medicaid program,” she said. “In order to qualify for the federal match, the Bush administration requires that states make payments to providers only for care of low-income, disabled and elderly patients who are eligible for Medicaid.”
The Spitzer administration is wary of a battle with the union, which has cultivated Senate Republicans by filling their campaign coffers. But Governor Spitzer wants to generally rein in spending.
Mr. Francis said he also wanted to put the brakes on former Gov. George E. Pataki’s unusual practice of writing legislation into the budget, which by many accounts drove the Legislature to distraction.
Careful listeners to the governor’s address to the Legislature last week took note when Mr. Spitzer said he was “sensitive to the important balance of power” in the budget-making process.
A Senate Seat Up for Grabs
The contest to replace Michael A. L. Balboni, a Nassau County Republican who gave up his State Senate seat for a post in the Spitzer administration, will be “a $3 million to $4 million race,” according to one Senate Republican aide. The special election is set for Feb. 6.
The candidates expected to emerge from the county committees are Craig Johnson, a Democratic county legislator, and Maureen O’Connell, a Republican who is the Nassau County clerk.
Senate Republicans are noted for their campaign prowess, but Senate Democrats are in some upheaval heading into this battle.
Senator Malcolm A. Smith of Queens, the new Senate minority leader, has ousted Senator Liz Krueger of Manhattan as leader of the Democratic Senate Campaign Committee, even though the party gained four seats in the 62-member Senate in the two elections she presided over. Ms. Krueger’s fortunes were not helped by her support for Senator Eric T. Schneiderman of Manhattan in his unsuccessful bid for the minority leadership.
The chairmanship will be split among three people. Senator Antoine M. Thompson of Buffalo, a freshman legislator, will be in charge of campaigns, taking a top role. Senator Diane J. Savino of Staten Island will run candidate recruitment, and Senator Jeffrey D. Klein of Westchester will handle fund-raising. Mr. Smith is also creating a board to oversee the committee, which will include Ms. Krueger and Mr. Schneiderman.
“I want to make sure we have as many members as possible engaged,” Mr. Smith said in an interview, adding that the leaders of the committee should “understand the complexity of the state. Heretofore, it’s been fragmented — upstate, downstate.”
Bucking a Party Leader
“I hope he understands that it’s business, not personal,” said Senator John J. Bonacic, a Hudson Valley Republican.
Mr. Bonacic was referring to his vocal opposition to the re-election of the Senate majority leader, Joseph L. Bruno, as temporary president of the Senate, after the revelation that Mr. Bruno’s outside consulting work is the subject of a federal investigation. Last week, Mr. Bonacic walked out of the Senate chamber rather than cast the only vote against Mr. Bruno, the state’s most powerful Republican.
Mr. Bonacic said Mr. Bruno had done nothing to make him feel unwelcome since then. “That’s behind us now,” said Mr. Bonacic, who joked that both his kneecaps and his supply of office materials remained intact.
Still, he cautioned, in politics, people never forget.
“I’m going to see how we are treated as we go forward,” he said.
He mused for a few moments, and then mentioned the recent defection of Mr. Balboni, above, which left Republicans with a slimmer 33-28 majority.
“The truth of the matter is, Senator Balboni went with Eliot Spitzer,” and not against Mr. Bruno, Mr. Bonacic said, explaining why the Bruno forces were unlikely to retaliate.
“We need each other, for the strength of the conference,” he added. “This is not the time for bloodshed.” NICHOLAS CONFESSORE
A Rocky Senate Debut
It was not, perhaps, the most auspicious beginning. More than 75 friends and associates who visited Albany on Wednesday for the swearing-in of Joseph A. Griffo, a new state senator, came down with a nasty stomach bug afterward, triggering an investigation by the state and local health departments.
“I was hoping that it wasn’t freshman hazing,” said Senator Griffo, a Republican from Rome who was previously the Oneida County executive. He said that within 24 hours of the ceremony his office began fielding calls from sickened people who had made the trip.
Marc Carey, a spokesman for the State Health Department, said that the sickness did not appear severe, but that investigators were studying whether the affected people had eaten the same food, or gotten sick some other way.
Several other people who were at the Capitol on Wednesday but who did not attend the Griffo event also reported becoming sick.
Senator Griffo added that the clergyman who had sworn him in was spared. “I think the collar may have protected him,” the senator said. MICHAEL COOPER