A 70 million dollar counting error has emerged as Governor John Lynch prepares his state budget proposal. The error was found in the heath and human services budget, but fingers are pointing in all directions.
Governor Lynch must present lawmakers with a two-year spending proposal by February 15th…… According to Stan Arnold, Lynch's top budget adviser,……the new Governor was close to putting the final touches on a plan that would close what Lynch has long held to be a 300 million dollar deficit.
"And then on Tuesday night we had 70 million dollars thrown at us and said, you know what you have to go back and start looking at your options again -- so that's what we're doing."
Arnold says the new shortfall is due to double counting of Medicaid money by the heath and human services department…….He also allows that Commissioner John Stephen has tried to make amends for what Arnold describes as the department's failure of management.
"John Stephen has talked to the governor and I know that he apologized for having the situation end up where he is --it's uncomfortable for them, it's kind of a hard thing -- the numbers are going to be what the numbers are."
The department, for it part, admits the error but attributes it to what it calls a communications problem…… Commissioner John Stephen failed to return phone calls for this story, but according to a timeline provided by his department……the Lynch budget team received accurate numbers in mid-November….…..What that timeline can't explain, however, is the event that brought the double counting to public attention in the first place….
"I said these revenue estimates you gave us this week and last week are not correct."
That's Representative Norm Major recalling what he told department officials after they presented their estimated Medicaid revenues to the House ways and means committee. When Major said when he saw corrected numbers he came to a quick conclusion.
"What we had anticipated for a shortfall for the next biennium -- you have to add 70 million to it."
While the Lynch administration and Representative Major seem to see eye to eye over the size and genesis of the shortfall, some lawmakers have a different take on the matter.
"If somebody can't do their jobs and they suddenly blame someone else…And I'm not saying it's the governor by any means -- his transition team was aware of it."
That's senate majority leader Bob Clegg……He believes the disputed 70 million is politically motivated attack on Commissioner Stephen.
"There were people who had the numbers. Don't blame anyone but yourself. Stan Arnold should knows better: Shame on him."
Governor Lynch has until February 15th to present a balanced budget to lawmakers.
