budget cuts create controversy

Two powerful health care groups are mounting an aggressive public relations campaign against Governor Paterson's proposed reductions in health care spending, the New York Times reported Sunday. The two groups, Union 1199 and the Greater New York Hospital Association, are purchasing radio and TV spots, funding a phone bank, and mailing flyers throughout the state to protest the governor's $3.5 billion in health care spending cuts, part of a larger $15 billion package designed to balance the budget. The NYT estimates the radio and TV ads alone will cost more than $1 million per week.

Yesterday Paterson and Senate Democrats balanced this year's fiscal budget, which ends March 31, with many small cuts that collectively covered the $1.6 billion deficit. This cost health care in New York "$359 million...including cuts for nursing homes and health maintenance organizations, grants and higher assessments for health insurers" according to Reuters. Also among the cuts: $75 million for the Environmental Protection Fund, and $306 million from the Power Authority.

For FY2010, there is a projected $13-15 billion dollar deficit. In December 2008, the Governor proposed an additional $3.5 billion in health care spending reductions. The centerpiece of the cuts, profiled on the Governor's website , would cap Medicaid spending in New York at $16 billion, which would nevertheless be an increase over spending in 2008-2009. However, it is over $1 billion less than the projected need of $17.2 billion during FY2010, and would reduce the amount of federal aid spent in New York state. More later on other proposed cuts.

Union 1199, more formally 1199 S.E.I.U. United Healthcare Workers East, is the health care portion of Service Employees International Union, covers New York, NJ, Maryland, DC, and Massachusetts. Its members are typically technicians who work in the health care field: certified nursing assistants, xray technicians, home attendants, etc. There are also members who are registered nurses, but these are relatively few. The union boasts 300,000 members and claims to be the largest local union in the world. The GNYHA covers more than 300 hospitals in the greater NY area.