The Children Thank You!

by Marita Noon

A reduction of Medicaid payments for services was announced in a State of New Mexico Medical Assistant Program Manual Supplement. One document addresses the fact that during 2007 and 2008 there was an increase in provider rates. Yet, in 2010, there would be a decrease of 3-10%.

Medicaid provides services to disadvantaged children—a population no one wants to hurt. Yet, in a time of increasing costs, payments for services are being cut. They say, "Program costs are outpacing available revenues." The only explanation given for the reductions is "a serious shortfall in state revenues largely related to gas and oil taxes."
Many have said the reduction is due to a drop in natural gas prices—and there is a bit of truth to this. However, plenty of blame can be directed at the state’s and counties’ anti-drilling policies which have chased the business out. For example, when drilling activity began in Santa Fe County, an anti-drilling fervor erupted and led County Commissioner Mike Anaya to institute a drilling ban while drafting strict drilling ordinances. "I want to make it a strong, strong ordinance," he said, pointing to a draft proposal to create regulations to control light and dust pollution and protect groundwater. The final ordinance stopped any future drilling and caused the one company extracting the resource to leave the state—taking their taxes and jobs with them. Other counties in northern New Mexico soon followed suit. For three years, these actions have successfully stalled new gas and oil development.

Again, some would argue that with the drop in prices, no one wants to drill here anyway. Not! Companies have been slowly working their way through the labyrinth of environmental impact studies, applications, permits, planning and zoning. It has taken three years and untold thousands spent on attorneys and environmental consultants.

During this time, New Mexico’s revenues from gas and oil have plummeted. Is it any wonder the revenues have gone down? Policies in the state have done everything they could to make the industry give up and go away. Many companies have. The children of New Mexico are suffering.

Due to lack of funding, facilities have closed. UNM’s Children’s Psychiatric Hospital has closed one of its cottages. When needed, children were once sent to a variety of other centers throughout the state, but they, too, are closing. Tami J. Lewis, Executive Director at Farmington’s Halvorson House, said she has already closed the Residential Treatment Center with the remainder of their programs closing by June 30. “After working so hard to develop programs that meet the needs of children in the community, it is difficult to have to close down. When our RTC was faced with the reality of Medicaid cost containment issues and rate reductions, we knew we had a tough decision to make. However, we had to stop the financial drain the RTC was having on our budget. In addition to impacting the availability of services, many excellent employees will be facing unemployment.”

Cuts are blamed on falling gas and oil taxes. Turn things around. Instead of being so worried about temporary dust and light pollution, think of permanent harm to the children.

Last week, in Rio Arriba County, they did just that. After three years, a drilling moratorium, and strict drilling ordinances’, eight drilling permits were approved—the final three on March 25 in a unanimous decision by the County Commission. During the meeting local residents (both current and former) spoke up in support of approving the applications. No one spoke in opposition. A far cry from the protests of the past few years.

Could this be the first stop in increasing revenues to the state?

New Mexico should go back to the days of surplus, when it viewed the gas and oil industry as a benefit--removing the unnecessary hurdles. New Mexico once said, "We want you! Come on down. We value you and your employees. We’ll do all we can to expedite your permits." Industry estimates say that activity could be increased almost immediately by 10-20%. The New Mexico State Land Office reported $497,328,404 in revenues from gas and oil in 2009. A mere 20% increase would be nearly $100 million—and these are just the SLO numbers--that could, according to the state’s Medical Assistance Program Manual, could go toward restoring the Medicaid funding for services to children.

In Rio Arriba, the Commissioners have shown bold leadership in their historic decision— benefiting the children of New Mexico. The children thank you!


Marita Noon is the executive director of the Citizens Alliance for Responsible Energy (CARE), a nonprofit organization that operates from the platform of "Energy Makes America Great" and supports all domestic energy development. She can be reached at marita@responsiblenergy.org or www.responsiblenergy.org.