A cross-dressing debate over the hospital bed tax

Contrary to what you may have heard, instances of cross-dressing within the state Capitol are quite rare.

We can’t vouch for what happens outside the building — the mental pictures boggle the mind. But inside the Capitol, lawmakers generally wear the same style of clothing day after day.

Republicans speak of tax cuts and limited government. Democrats, just as predictably, defend the have-nots of the world.

Then came April Fools’ Day in the Senate.

Republicans dressed up as softhearted Democrats and argued for income redistribution. Democrats stiff-armed pleas from Grady Memorial Hospital. No doubt, in some anteroom, dogs and cats were living together.

At the root of the strange battle, which occurred in the last hour before the long Easter weekend, was HB 307 — perhaps the most hated and necessary bill before the Legislature this year.

Pummeled by threats from Gov. Sonny Perdue that he could do much worse to them, Georgia’s hospitals have agreed to a 1.45 percent bed tax to help fill a canyon-sized hole in the state budget — including a large shortfall in Medicaid funds.

Do not weep for the hospitals. From the leadership of the Legislature, they extracted a three-year sabbatical from any attempt to open up their industry to increased competition.

The $216 million that would be raised by passage of the bill is essential to balancing the state budget — and preventing further layoffs and furloughs.

GOP lawmakers privately agree that the “fee” contained in HB 307 is a tax that violates the pledge that many have made to anti-taxman Grover Norquist and his national group, Americans for Tax Reform.

This was no problem in the House, where the bill won massive, bipartisan support. But in the Senate, Democrats declared that Republicans would have to pass the tax increase all by themselves.

They spoke of threats and attempts at intimidation from Republicans, but there was a hint of payback as well. Days before, the GOP leadership had shut Democrats out of negotiations on the transportation funding bill set to begin this week.

The situation was made more volatile by the looming July primaries. Three senators — Republicans John Wiles of Kennesaw and Judson Hill of Marietta, and Democrat Vincent Fort of Atlanta — could have significant opposition. Hill was granted an excused absence before the debate began and never returned.

Another problem: Mitch Seabaugh of Sharpsburg, the whip in charge of stirring up Republican votes for HB 307, announced that he would oppose it.

A test vote — taken by hand to avoid any record — showed Republicans short by one.

After a brief huddle by both sides, and a theatrical return by Democrats, who came back en masse for the TV cameras, the debate began.

Churches have “abdicated” their role as providers for the poor, said Tommie Williams (R-Lyons), the highest-ranking member of the Senate and a harsh critic of rampant socialism in Washington. So government must step in.

“You that have two coats, give to the one who has no coats. That’s what we’re about. That’s the Christian ethic,” he said. “So we who have are to give to those who don’t. This is what Medicaid is.”

Democrats condemned the hospital tax as something that would surely be passed onto patients. But Fort, who has led protest after protest over cuts to Grady, seemed uncomfortable casting a vote that would deprive the state’s largest charity hospital of much needed Medicaid money.

“We’re told we’ve got to do this for Grady,” Fort said. “But at the same time, these same [Republicans] have cut, cut, cut to the bone. We find that a little bit contradictory.”

Two sweeteners were added to HB 307. One would permit hospitals to count the 1.45 percent tax against any money they’re required to give to a statewide indigent care fund. A chance to rob Peter to pay … Peter.

Another would lift a sales tax on health insurance policies.

Senators couldn’t say how much either initiative would cost. But they worked.

HB 307 passed with two votes to spare. Fort voted against it, but three other Democrats switched. Wiles voted for it. “I love tax cuts,” the Kennesaw Republican said as he hustled from the chamber.

A day later, the dust still hadn’t settled. There was talk that Hill could lose the chairmanship of the Senate Reapportionment Committee — which will take on huge importance next year, after the census. Seabaugh could lose his whip position.

“We have not asked for anyone’s resignation, and neither the Committee on Assignments nor the GOP caucus has acted upon any formal resignations yet,” said Williams, the Senate president pro tem. “Yet” is a very important word.

The governor condemned Senate Republicans for muddying up a streamlined bill “to curry favor with a Washington, D.C., special interest group — which is funded by the highest bidder.”

Under normal circumstances, Senate changes to HB 307 would be taken up by the House when the Legislature reconvenes on April 12. But Speaker David Ralston told his members late Friday that he won’t let the bill through the doors.

He’ll send it back to the Senate, Ralston said, “where I hope they take proper and sensible action to balance the budget and ensure the General Assembly avoids a special session.”

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