Governor Brad Henry says rural hospitals' future at stake

<br>OKLAHOMA CITY (AP) _ Gov. Brad Henry said Monday a legislative vote against his tobacco referendum is ``a vote against rural hospitals and rural Oklahoma.'' <br><br>The proposal, which would

Tuesday, March 9th 2004, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ Gov. Brad Henry said Monday a legislative vote against his tobacco referendum is ``a vote against rural hospitals and rural Oklahoma.''

The proposal, which would raise $130 million if approved by a vote of the people, is set to be considered this week on the House floor.

Flanked by about 75 rural hospital administrators and employees, the Democratic governor said many rural hospitals will close without an infusion of funding in the state's health care system.

He said in many cases a rural hospital is the biggest employer in a town and its closing ``will kill a community.''

Craig Jones, president of the Oklahoma Hospital Association, said rural hospitals are losing money because so many Oklahomans do not have insurance.

Under Henry's plan, Oklahomans would vote on raising the state tobacco stamp tax by 77 cents, while eliminating state and local sales taxes.

Since sales taxes total about 25 cents on a $3 pack of cigarettes, the result of the change would be a net 52-cent increase in the average price per pack.

Henry's proposal has run into opposition from Republicans in the House. Last week, GOP Lt. Gov. Mary Fallin suggested an alternative plan that would include eliminating the capital gains tax.

She said such a plan would not violate a no-tax increase pledge signed by 25 Republican House members

Henry said Fallin's plan would cost an estimated $210 million over three years.

He said any proposals that would cut taxes or result in no revenue gain are ``a waste of time'' because the health system needs an infusion of cash.

``Anything short of that just doesn't cut the mustard,'' Henry said.

He said his plan will generate up to $500 million by matching federal funds, allowing health care benefits to be extended to 200,000 Oklahomans who do not now have health insurance.

Henry argues that should blunt cost shifting that is driving up insurance rates because uninsured people delay treatment until they must go to high-cost emergency rooms.

The tobacco tax measure reportedly is short of the 51 votes needed for passage in the House, but supporters say it is gaining strength.

Henry said partisan politics appears to be at play in opposition to the bill because the House already has advanced three proposals that called for a vote of the people on raising fuel taxes.

He said a vote on sending an issue to a statewide vote does not violate a pledge not to raise taxes.

He also said he hopes Democrats who are smokers will not oppose the bill for ``selfish'' reasons.

Rep. Todd Hiett, R-Kellyville, House Republican leader, suggested Henry was being inflexible in his comments.

``It sounds to me like this bipartisan governor is saying to the Legislature it's my way or the highway. That's not a productive way to do business,'' Hiett said.