AUGUSTA – Money to fund Dirigo, a program to provide affordable health care on July 1, is being used illegally, Sen. Richard Bennett, R-Norway, charged Thursday.

Democrats and Gov. John Baldacci insisted Thursday that use of the money for Dirigo is not only legal, but appropriate. “All the funds from the Federal Fiscal Relief have been used appropriately,” Baldacci said.

Worried about later repercussions, Bennett said he asked U.S. Sen. Susan Collins, R-Maine, on Thursday to request the federal General Accounting Office to examine how Maine is using money from the Federal Fiscal Relief program, or what Republicans call the “Bush-Collins money.”

As states were suffering record deficits as the economy floundered last year, the federal government gave states money to help. Maine received about $107 million, Bennett said. One condition of that money was it go for existing programs, not new programs. “Clearly this is a new and expanded program,” Bennett said. “Using $53 million to create Dirigo seems to me a clear violation of federal law.” Before Maine gets into trouble with the federal government, “we ought to get clarity on the issue. It threatens Dirigo Health. It threatens our budget.”

Instead of making tough choices, Baldacci and Democrats are turning to budget schemes that are “a shell game,” Bennett said. One example is the “tax-and-match” plan in the Democratic budget that passed Thursday night. That will impose a new tax on hospitals, which allows the state to draw more federal money, then the state will reimburse hospitals for the tax. That is “bilking the federal taxpayer out of more money, and it needs to end,” Bennett said.

His concerns were echoed by other Republicans who unsuccessfully lobbied that $18 million out of the $53 million in Dirigo seed money – which came from the Federal Fiscal Relief money – be used to instead restore cuts to hospitals, pharmacists and other providers.

Democrats and administration officials insist Republicans are wrong and have a “short-term” memory.

Administrative and Financial Services Commissioner Becky Wyke reminded the governor Thursday that before use of the money was passed in law, the proposal was reviewed by legislative lawyers, was discussed with representatives of the Maine Congressional delegation, and “discussed openly in the public sessions.” It received the unanimous vote of the Appropriations Committee, and was endorsed in House and Senate, Baldacci said.

“The point here is that there’s short-term memory here. People are trying to manufacture a political issue in the middle of the winter instead of the middle of the fall.”

The governor said it’s important to “tone down the rhetoric and do the peoples’ business.”

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