North Olympic Peninsula residents have a lot to lose if cuts proposed by Gov. Chris Gregoire to eliminate a $2 billion shortfall come to pass, according to hospital and school administrators.
The proposed cuts, to be mulled by the state Legislature in a special session beginning Nov. 28, would eliminate the state’s Basic Health plan and slash education funding, including slicing levy equalization money to poor school districts in half and reducing aid to colleges by 15 percent.
The loss of the Basic Health plan would leave thousands of Clallam County residents without health insurance, said the chief executive officer of Olympic Medical Center, based in Port Angeles.
“It’s pretty devastating,” Eric Lewis said.
It would put OMC in a deeper financial hole, he said.
“For OMC, it means newly uninsured citizens and something over a $3 million loss of revenue.”
Jefferson Healthcare CEO Mike Glenn said the Port Townsend hospital also will face rising costs as those who were in the program lose access and possibly turn to the emergency room for treatment.
“There will be more emergency room visits and visits to the physician network that would be provided without compensation,” Glenn said, adding that the hospital is reviewing how to pay for such services.
He estimated the cost to the hospital to be between $750,000 and $1 million a year.
The elimination of Basic Health, which provides medical services for the poor, and proposed cuts to Disability Lifeline, which serves low-income adults and drug and alcohol abuse programs, would affect 56,000 Washingtonians and “several thousand people — something over 3,000” in Clallam County, Lewis said.
“We already have a bunch of Medicare cuts coming from the federal government,” he added.
Estimates for Basic Health recipients in Jefferson County weren’t immediately available.
Peninsula school districts that receive levy equalization funds — Port Angeles, Cape Flattery, Crescent and Quillayute Valley school districts among them — will face cuts to education materials, building maintenance and even staff reductions if the cuts to education are approved, administrators said.
“That would be a devastating impact to our school district,” said Cape Flattery Superintendent Kandy Ritter, adding that layoffs would be likely.
The funds, which are meant to assist “property poor” school districts that have trouble raising tax dollars, make up as little as 5 percent of Crescent’s budget and as much 13 percent of Port Angeles’ funding.
“I really hope that the Legislature takes into account that K-12 has been hit extremely hard,” said Port Angeles Superintendent Jane Pryne.
“This would just be . . . it’s very difficult.”
Additionally, Peninsula College President Tom Keegan said a 15 percent cut would translate into a $1.3 million cut for the college.
He said enrollment would likely have to drop as a result.
“My concern is that any further cuts will erode our ability to have a trained workforce, which is exactly what we need to get us out of this economic crisis,” Keegan said.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
