Rendell takes Medicaid concerns to Washington
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WASHINGTON -- On Capitol Hill to cajole members of the Pennsylvania delegation, Gov. Ed Rendell on Wednesday predicted 25,000 layoffs in the commonwealth if a controversial spending bill doesn't pass Congress.
The American Jobs and Closing Tax Loopholes Act, known as the tax extenders bill, comprises a variety of proposals -- but the one most important to Pennsylvania is a six-month extension of federal matching funds for state Medicaid programs.
If the state doesn't get the additional $850 million in Medicaid assistance, adoption of a 2010-11 budget will become even more difficult than it already is. Mr. Rendell wants to spend $29.1 billion for the year beginning July 1, which is considerably larger than the current state budget of $27.8 billion.
Mr. Rendell's new spending proposal is balanced by the inclusion of the so-called Federal Medical Assistance Percentages, or FMAP, money, so if Congress doesn't approve it, the state budget will be considerably out of balance. That would complicate budget talks with Republicans, who control the state Senate and who are demanding that Mr. Rendell trim his 2010-11 budget plan to $27.5 billion.
These disagreements are leading some legislators to figure they'll be in Harrisburg all summer, as they were last year.
As Mr. Rendell summed up at a Capitol news conference, losing the federal boost "would have a debilitating effect on us."
An extension for the first six months of the fiscal year already has passed, so this extension would be for the second half of Mr. Rendell's budget.
Mr. Rendell noted that more than 30 other states -- with governors from the left, right and center -- have already budgeted the extra money, and failure to pass it would have far-reaching effects. Aside from layoffs to teachers, emergency workers and others, Mr. Rendell said he might have to close state parks.
First Published May 27, 2010 12:00 am
