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New York, Michigan, Pennsylvania Governors Press U.S. Congress on Medicaid
The governors of New York, Pennsylvania and Michigan led states pressing Congress to extend higher financing for Medicaid, the health-care program for the poor whose use surged during the economic crisis.
David Paterson of New York, Edward Rendell of Pennsylvania and Jennifer Granholm of Michigan and three other governors, all Democrats, traveled to Washington today to appeal for funds after the Senate failed to approve $16 billion in extra financing for Medicaid and extended jobless benefits. Republicans opposed the measure’s cost.
The Senate action last week dealt a blow to cash-strapped states, about 30 of which had anticipated that the federal help would be extended for another six months. U.S. states at year- end will lose the additional Medicaid money they receive under the economic-stimulus package unless Congress steps in. The governors said the money is needed to prevent cuts to programs such as schools, whose funding has already been slashed.
“We’ve depleted our resources,” said Paterson, whose state was anticipating $1 billion for Medicaid. “Where are we going to go? We are going to have to go back to some of these same places and create unimaginable pain.”
Yet to Recover
While the economy has been expanding, states have yet to recover from the longest recession since the Great Depression. The economic rout cut into tax collections and forced them to raise taxes and slash spending on schools, social services and other expenses. States have projected total budget deficits of $127 billion through 2012, according to the National Governors Association.
With 15 million people unemployed across the U.S., expanding Medicaid rolls have added to the financial pressure on states. Medicaid enrollment jumped more than 3 million in June 2009 from a year earlier, a record increase, to 46.9 million recipients, according to the Kaiser Commission on Medicaid and the Uninsured.
Both Republican and Democratic governors have previously urged Congressional leaders to extend the Medicaid help.
Senate Majority Leader Harry Reid, a Nevada Democrat whose position lets him control the chamber’s business, said last week that the bill that failed may be considered again if support emerges from the minority party. The House of Representatives, however, is now considering legislation to extend unemployment benefits -- the key component of the bill containing the Medicaid extension -- without that state aid.
‘Just Saying No’
“House and Senate Democrats strongly support additional support for the states, but unfortunately Republicans are once again just saying no,” said Jim Manley, a Reid spokesman.
Republicans faulted last week’s bill for adding to the federal government’s debt. Republican Senator Scott Brown of Massachusetts said today he would introduce his own legislation to provide the Medicaid funds, paid for by unspent money from the economic stimulus program.
Pennsylvania’s Rendell said the governors have been pressing their congressional delegations to get an extension passed. He said the failure to do so would affect states in a matter of weeks, given the need for them to balance their budgets. The fiscal year begins July 1 for most states.
“I think there is going to be an effort made,” he said. “Hopefully, it will succeed.”
‘Deeper Pain’
Among those who called on Congress to pass the Medicaid extension was California Governor Arnold Schwarzenegger, a Republican whose proposed budget plan for the year beginning tomorrow anticipated $1.7 billion in added funds for the program. California’s lawmakers have yet to approve a budget for the year as the state faces an anticipated $19 billion shortfall in its spending plan.
“The cuts I have proposed to close that gap are absolutely devastating, they break my heart,” Schwarzenegger said in a video link from his office to the Washington news conference. “The federal money is critical toward preventing deeper pain and deeper job losses.”
Other governors who traveled to Washington were Martin O’Malley of Maryland, Chris Gregoire of Washington and Mark Parkinson of Kansas.
The governors said the failure to help would trigger deeper cuts to spending and government job cuts that would weigh on the nascent economic recovery.
“We would have to look at things we have never put on the table,” said Michigan’s Granholm, who said her state stands to lose $560 million. “The consequences on the ground across the country will be devastating.”
To contact the reporter on this story: William Selway in Washington at wselway@bloomberg.net;
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