State still searching for funding

ATLANTA -- Establishing a network of specialized hospitals equipped to quickly deal with the most traumatic injuries has been a goal of state leaders for years, but finding the money has been the problem. This year is no different.

A projected budget deficit of $2.8 billion is a major headache but not really the main stumbling block. That's because most policymakers say they want to identify a steady funding source rather than drawing an appropriation from the general budget.

Last year, House Speaker Glenn Richardson proposed a $10 fee for automobile owners when they purchase their annual car tags. He tried to overcome objections from legislators elected on a pledge of "no tax increases" by simultaneously removing personal property taxes on cars, but the measure failed in the Senate.

This year, others are pushing the $10 fee again, but the budget deficit prevents giving up the income from car taxes.

In his State of the State Address, Gov. Sonny Perdue recommended a multi-pronged approach to the funding issue.

First, he would impose a new, 1.6 percent tax on the revenue -- not profits -- of all health-insurance companies and hospitals. Most of that money would go toward filling a $208 million hole in the budget this year for Medicaid. The remaining funds would go toward trauma care, along with revenue generated by imposing an extra $200 fine on drivers who exceed 85 mph on interstates and 75 mph on other roads.

Some critics of taxing hospitals liken it to taking food from a starving person because many hospitals are already struggling financially. The most conservative lawmakers object to any tax increase.

"In my opinion, I think there is going to be resistance to seeing new revenue sources," said Rep. Tom Graves, R-Ranger.

Rep. Ron Stephens, R-Savannah, introduced a bill to raise the tax on a pack of cigarettes from 37 cents to $1.37. The pharmacist said he wants to discourage children from buying cigarettes, and he thinks the tax could be designated to trauma care.

He says he has co-sponsored every bill that offers a solution for trauma-care funds. He's growing more hopeful about the tobacco tax increase's chances.

"The reason the mood has changed a good bit on our side is we're looking at designating funds subject to appropriations ... rather than dedicated funds," he said.

The difference between "designated" and "dedicated" might seem technical, but it carries a major political distinction.

Lawmakers frustrated by the mismanagement they perceive at the Transportation Department can't punish the agency by withholding gasoline-tax funds that are dedicated by law to transportation. So they're not eager to dedicate funds to any new programs, even trauma care.

Reach Walter Jones at (404) 589-8424 or walter.jones@morris.com.