Tuesday, February 23, 2010

Douglas: Reconciliation 'Would Be A Mistake'

By Alexis Simendinger  

Gov. Jim Douglas

Vermont Republican

National Governors Association Chairman Jim Douglas had thought that by the time he and other state chief executives were to convene in Washington this week for their winter meeting, discussion would be focused on how states could implement health care legislation. Instead, Vermont's Republican governor finds himself giving advice to Democrats and Republicans locked in a legislative stalemate. In an interview with National Journal on Sunday, Douglas said he is unsure of how to move reform forward, but he's certain that passing a law through reconciliation is not the answer.

Edited excerpts follow.

NJ: [On Saturday] you were saying that you had expected to come here to talk about implementing health care reform. And that has not been the case, of course. There's lots of discussion in Washington about how to uncork it, get it going one way or the other. There's discussion about -- if Democrats have the majority, using 51 votes through budget reconciliation, and "just go for it." What's your feeling about that, if the Democrats decide to go that route?

Douglas: I think that it would be a mistake, to be honest, because what we need is a consensus, a bipartisan approach. You know, it's going to be governors who implement whatever is ultimately passed by the Congress. If there's not a broad buy-in by the states across the country, then I don't think it's going to work. There have been other bills passed by the Congress, such as the REAL ID drivers license initiative or No Child Left Behind, where a lot of states resisted -- in fact, in some cases refused to participate. Well, we don't want that to happen. We want to feel good about what ultimately is approved. And the only way to do that, I think, is on a bipartisan basis.

NJ: What's the process, though? Is that the "start over" recommendation that some Republicans are making? Is it President Obama's version of "let's come together at the White House?" What's the path forward?

Douglas: That's a good question. I'm not sure it's either of the above, because both camps have staked out their territories. But there's got to be a process where governors are at the table, where people across the political spectrum can leave their partisan bickering at the door and sit down and talk about real reform that can make a difference.

NJ: Since you're a Republican governor, what's your message to Republicans in Congress on health care?

Douglas: My message to Democrats and Republicans in Congress is frankly the same: work together. That's what we have to do at the state level. We can't afford the luxury of debating forever; we have to actually accomplish something. We have to implement programs. We have to balance our budgets. We have to deliver services to the people we represent and serve. The American people are sick of this bickering. They want the folks to come together in Washington and find some solutions that everyone can be satisfied with.

NJ: Let me ask you about Medicaid. You've been saying over and over again while you've been here, and I'm sure at home, "Give us the flexibility to reconcile what we need, state-based, on Medicaid." Congress is talking about expanding Medicaid and in some ways compelling the states to do certain things. Where is the rubber going to hit the road on that? How do you tell Congress to see it your way?

Douglas: Well, we'll keep taking about it. Obviously, for some states like Vermont that expanded their Medicaid programs early, the fiscal impact directly is not that great. But for many other states it is. And our view is, as an association, that one size doesn't fit all. This is a very diverse country -- different economic situations, different demographics, different priorities that legislatures and governors have to wrestle with. What we'd like to see is more flexibility. We're ready to go.

NJ: Someone you know very well, Dr. [Howard] Dean, is still working from the sidelines to advocate for a public option in health care, and that continues to be front and center now, still, in the conversation among Democrats and Republicans. Is this helping or hurting getting health insurance reform forward?

Douglas: Well, many Democrats in Washington have dismissed that at this point as a viable option. And I thought that was an important step to try to achieve the kind of consensus that's going to be necessary to move this forward. But I've said right along that in a way that's not the most important point; whether we have a publicly funded plan or a system of private insurance as we do principally now, if we don't get costs under control, we're broke either way. So we're focused on the wrong issue, in my view. We have to find ways to improve quality care but at the same time reduce the costs that are such a burden to state government budgets, to family budgets and to our business community.

NJ: Tell me about jobs and the economy. Washington is still talking about another jobs package. The stimulus has been accepted by some governors as welcome, and some governors are very concerned about it being maybe a temporary help and a long-term drag. What's your feeling about what Washington should do about jobs going forward this year?

Douglas: In the long run, I think a low tax and less onerous regulatory environment will provide incentives for entrepreneurs to encourage the creation of jobs and employ more people. Some support through the Recovery Act that we received last year, and perhaps some additional support this year, will help us bridge the gap between the tough budget crises that we're facing now and what we hope will be a better time in a couple of years.

But eventually states have to wean themselves off of the federal dole, because the American people are pretty smart; they know that $12 or $13 trillion debt is a big problem for the future of our country. We want the federal government to help us in the short term, but we have to make sure that we put our own houses in order, make the tough choices and put the states on the path to fiscal stability.

NJ: If you could give Republicans in Washington a message -- because of course they're getting kind of a reputation, at least among Democrats, of being the party of "no" -- if you could give them a suggestion, what would it be?

Douglas: Well, to find that elusive common ground. It's OK to have different ideas; that's what the American political system is all about. It would be boring if Republicans and Democrats had exactly the same ideas on everything, and we expect that that robust marketplace of ideas will ultimately result in good public policy. But what's happened in the recent past is the kind of partisan gridlock that is really dissatisfying to the American people. They expect their elected representatives to get the job done -- to solve the national economic crisis, to put more people to work, to address the health care problems that we're confronting.

So my message is, don't give up your principles -- because we Republicans feel strongly about individual responsibility and entrepreneurship and creative, innovative approaches to problems -- but still recognize that we have to do something. We have to accomplish these goals and work with everybody to get the job done.