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March 18, 2013

Both parties zero in on liquor contract to pay hospitals

As Democratic legislators and Gov. Paul LePage started debates last week on competing proposals to renegotiate the state's wholesale liquor contract, they were able to reach a resolution regarding linking the payment of the state's Medicaid debt to Maine's hospitals as a part of the liquor deal. Both parties now favor bundling the two issues together.

Urgent care

Democrats made a last-minute tweak to their proposal to renegotiate the state's wholesale liquor distribution contract. Their latest plan retains the structure of the current arrangement with Maine Beverage Co., which keeps management of the state's liquor distribution in private hands, but requires an upfront payment from the company that wins the state's next liquor contract to cover the nearly $186 million in overdue MaineCare debt owed to the state's hospitals. The Democrats' plan previously aimed to separate negotiation of the liquor contract from the hospital repayment issue.

Earlier this year, LePage linked the two issues and promoted a plan to borrow against projected proceeds from a renegotiated liquor contract.

LePage called the Democrats' plan an “abomination” and likened it to the current 10-year deal crafted in 2004 that garnered the state a $125 million upfront payment in exchange for the contract valued at nearly $378 million by a 2009 estimate. Legislators were scheduled to discuss both bills in a work session March 18. Separately, Senate President Justin Alfond, D-Portland, last week introduced a bill that would increase the number of agency liquor stores in communities with populations greater than 45,000 from eight to 12.

Opening dialogues

LePage began speaking with federal officials last week about possibly expanding Maine's Medicaid program under the Affordable Care Act, the Bangor Daily News reported, marking a shift from his previous opposition to accept federal dollars for that purpose. LePage spokeswoman Adrienne Bennett said the governor remains opposed to expanding the program, but the conversation comes as an increasing number of Republican governors soften their opposition to the Medicaid expansion required under the Affordable Care Act.

Ain’t no sunshine for Maine laws

Last week, the Sunshine Foundation, a nonprofit organization promoting government transparency, gave Maine's legislative website a “D” grade for its overall accessibility. The grade came during Sunshine Week, which the organization uses annually to promote government transparency initiatives. In its rankings this year, the foundation introduced a law-tracking website for each state, showing recent bills passed, the makeup of legislative committees and allowing registered users to sign up for alerts about specific laws. The project's Maine page is at openstates.org/me.

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