Heated Testimony, No Consensus on O'Malley's Tax Measures

Also yesterday, O'Malley's health care package drew fire from Republican lawmakers, who said the initiative should not be part of a special session to close a budget deficit.

Under the governor's plan, Medicaid would expand over four years, first covering parents with incomes of less than $20,000 for a family of three, which is 116 percent of the federal poverty levels.

In testimony to lawmakers, Health Secretary John Colmers said access to health care for Maryland's Medicaid population is "abysmal."

"We're not going to solve every health care problem in this bill, but it's a first step," Colmers said.

O'Malley's proposal also suggests offering a subsidy to employees who earn less than $50,000 at companies with less than nine workers that don't offer health insurance benefits. The state would also lower deductibles for employees who sign up for wellness programs, such as weight loss or smoking cessation programs.

Since there is no dedicated funding for the program, enrollment and benefits can be capped if money falls short in the future.

Sen. John C. Astle (D-Anne Arundel) asked if the health care expansion included dental services for the poor. Colmers responded that it is not part of the bill, but he created a committee to find ways to provide dental care to people on Medicaid.

"We had a tragedy in this state that should never be repeated with the death of Deamonte Driver," Colmers said, referring to the 12-year-old boy from Prince George's who died this year because his family could not afford dental care.

Some Republicans said O'Malley's $675 million plan -- which includes $250 million in state funding -- should not be heard during a special session. "I have tons of stuff to look over right now," said Senate Minority Whip Allan H. Kittleman (R-Howard). "How can I give this the scrutiny it deserves?"

Sen. E.J. Pipkin (R-Queen Anne's) said introducing the plan now appeared to be a way make it easier for some lawmakers to swallow raising taxes.

"It has a lot less to do with children, than getting the tax package passed," he said.

In defending the timing of the plan, Carolyn Quattrocki, O'Malley's deputy legislative officer, told lawmakers that initiative would be funded by a $1-a-pack increase in the cigarette tax, part of the governor's overall budget package.

At a separate hearing, lawmakers also started examining $760 million in possible cuts they could make to the budget next year. Among the cuts was a planned 2 percent raise for state workers.

Staff writer John Wagner contributed to this report.