Berglin, DFL push for constitutional amendment to stop raids on state health care fund

Tired of watching Governor Tim Pawlenty try to raid Health Care Access Fund dollars to balance deficits in the general fund, DFL legislative leaders are attempting to put the matter in the hands of the voters. On Thursday, Senate Health and Human Services Budget committee chair Linda Berglin (DFL-Minneapolis; pictured above) brought forth a bill for a constitutional amendment that would mandate that HCAF monies go to the state-supported health insurance plan known as Minnesota Care, as originally intended when HCAF and Minnesota Care were created by Berglin and other legislators 16 years ago. Berglin’s counterpart in the House, Rep. Thomas Huntley (DFL-Duluth), is expected to introduce a companion bill in that body either Friday or early next week. If approved by both the full House and Senate before the session adjourns (the deadline is a week from today), the amendment will appear on the ballot this November.

Almost every year that he has been governor, Pawlenty has attempted to take HCAF monies — derived from a tax on health care providers and insurance plans — to balance a deficit or otherwise fund programs contained in the state’s general fund. This session he recently dropped his proposal to tap $250 million from the fund, but is still asking for $48 million per year to ease the transition of people enrolled in General Assistance Medical Care into Minnesota Care. Supporters of Minnesota Care (and additional health care funding in general) view the governor’s attempt to use HCAF for an ongoing budget line item rather than as one-time money as a potentially unwelcome precedent.

“We believe a constitutional amendment is necessary because clearly the current law, which prohibits these transfers, is not being enforced,” said Minnesota Nurses Association representative Mary Jo George in testimony before the Senate Finance Committee yesterday. “Hundreds of millions of dollars have been transferred from the Health Care Access Fund to reduce deficits, and sadly tens of thousands of Minnesotans have had their medical safety net severed for the sake of balancing the budget…we are concerned, without dedicated funds, we may not have a [Minnesota Care] program.” An executive from Allina Hospitals & Clinics and a representative of the SEIU also spoke in favor of Berglin’s bill, which passed the finance committee and was sent by the full senate to the rules committee yesterday.

Huntley’s companion bill will have to go through similar legislative hurdles in the House and any differences between the two will have to be reconciled before this session’s May 19 deadline. Governor Pawlenty cannot veto proposals for constitutional amendments passed by the legislature. Asked if she fears that the bill will prompt Pawlenty to take a harder line on the current budget negotiations in general and health care spending in particular, Berglin laughed and said, “he’s already threatening cuts, so what’s the difference?”

Related: Same as it ever was: Pawlenty again wants state health care fund to solve his budget troubles