Stop The Wishard Referendum

Carl Moldthan of the Indianapolis Taxpayers PAC is seeking support for the organization's efforts to defeat the Wishard referendum, which proposes what could be the largest property tax increase in Marion County history, notwithstanding the lie you are being told by the proponents that no new taxes are being proposed. You can e-mail Carl at carlfire@sbcglobal.net, or you can mail contributions to the PAC to him at 3130 E. Southern Avenue, Indianapolis, IN 46203. Moldthan does a good job describing the scam the Health & Hospital Corporation is running to defraud the federal government of Medicaid dollars to pay for a new county hospital:

My name is Carl Moldthan and during the past four months I have looked at HHC’s budget, the CAFR’s for the past five years, their tax stream, the Special Funds they receive from Medicaid, the nursing homes they own and virtually everything anyone can think of. The truth is as I will explain:

Wishard owns 37 nursing homes all over the state, (Elkhart (2), Evansville (2), Ft Wayne (5), Monticello, Valparaiso, South Bend and many more cities) which they receive approximately $17 million a year in revenues from. They also receive, as of 2008, $51 million from Medicaid’s special funds called Upper Payments Limits (UPL). These UPL funds make up the gap between Medicaid and Medicare for nursing home residents. As an example, a normal Indiana nursing home receives approximately $3,400 to $3,900 per month, per patient. However, HHC receives on average approximately $9,898 per patient, per month. These extra funds give HHC an advantage over other nursing homes because they can do improvements and repairs that other nursing homes cannot afford. This is one reason why HHC should NOT own nursing homes.

It is these extra UPL monies that are supposedly going to pay for the Bond Issue. In the real world these funds could be considered or identified as revenues. However, because they CANNOT guarantee these funds HHC must back these bond issues with General Obligation Bonds, thus the referendum. General Obligation Bonds are backed by PROPERTY TAXES. The only method of bring them down is stopping the bond issue.

There are several things that can bring this bond issue to the point where we have to pay for it but the main three are:

1. If enough nursing homes in other cities complain to their respective Congressman, US Senator, State Senator or Representative there will be a huge hue and cry to close the loophole that allows HHC to own these nursing homes that is assuming that it is legal in the first place. This would cut their stream of UPL money thereby ending the revenue stream and starting a huge property tax increase on all of us. The sad thing is that this tax may NOT BE INCLUDED in the Property Tax Cap by the time we have to start paying for it. The cost to an average taxpayer who owned a house valued at $150,000 would be an extra $175 per year.

You’ve got to ask yourself one question: Do I feel lucky? Well, do ya, taxpayer?

2. The Medicaid money received for these nursing homes could be shut off tomorrow without notice by Medicaid. This type of Medicaid has been under investigation by the GAO and Congress for the past 8 years. The reason for the problems is the fact that so much money can be obtained and UPL money amounts are uncontrollable. Congress has referred to UPL as a SCAM. When it involves this type of money one has to ask the important “What If” questions. What if 10 other communities learn about the EASY method of building a new hospital and instead of $42 million per year (BOND COST PER YEAR) Medicaid is paying out $420 million a year? Medicaid would put a stop to this immediately and again the Taxpayers of Marion County would have to pay.

You’ve got to ask yourself one question: Do I feel lucky? Well, do ya, taxpayer?

There are several other things that can happen but these two are the most probably. I like to think back to 1983 when then Mayor Hudnut promised that the 2% Food and Beverage tax would disappear after the $75 million Dome was paid for. Now, 25 years later we still owe $69 million on the Dome which if you’ve looked lately isn’t there, and the Food and Beverage tax is at 7%.

You’ve got to ask yourself one question: Do I feel lucky? Well, do ya, taxpayer?

We all need to focus on one thing and that is beating the bond issue. The who, what or where doesn’t matter, the ONLY thing that matters is stopping the BOND ISSUE. If you have any question you can reach me at carlfire@sbcglobal.net.

I'm disappointed to report that the Republican Party has dispatched Deborah Daniels, the sister of Gov. Mitch Daniels, to pitch passage of the Wishard referendum to the various township GOP clubs this month. Opponents of the referendum have not been afforded equal time by the party, which I'm told is supposed to be the party that opposes higher taxes. At a meeting Monday night before the Wayne Township GOP club, I'm told that Daniels faced a tough grilling from Sen. Mike Young and Rep. Phil Hinkle. Due to the unexpected tough questioning, Daniels' presentation fell flat. Although Daniels claims to be a volunteer for the effort, the truth is her law firm, Krieg DeVault, is paid to lobby on behalf of the Health & Hospital Corporation. I recall Daniels lobbying for the Health & Hospital Corporation back in the 1990s when Mitch Roob served as CEO of HHC. On Monday, Roob called the HHC's financing scheme for the new hospital using nursing home revenues "a bit of scam." The former FSSA Secretary and current CEO of the Indiana Economic Development Corporation predicted that the HHC's nursing home scam would eventually draw the scrutiny of the federal government.