Governor Signs Budget Bill, Lack of FMAP Funding Forces Spending Cuts
July 1, 2010
Governor Deval Patrick yesterday signed the FY 11 budget into law. Notably, the governor was forced to make a number of line item reductions over and above what was reflected in the conference report approved by the legislature last week. These actions were necessary because Federal FMAP funds have not been received as expected.
NAGE is committed, as always, to fight for every member and ensure that the impact of this escalating budget crisis is mitigated and shared equitably across all areas of government.
MassBudget.org: The budget enacted by the Legislature on June 23, 2010 included two sets of spending levels: one if the state does not receive additional fiscal relief from the federal government, and another set of numbers allocating $374.1 million in funding that could be received if Congress does provide additional state fiscal relief. This money would come from an extension of the enhanced Federal Medicaid Assistance Percentage (FMAP), a significant component of stimulus included in the federal Recovery Act. To show how this money would be allocated, the Legislature’s budget proposal included spending levels in a number of line items that had both a base level and a higher amount that could be spent if additional FMAP funding is received (for a complete list see here and here).
The Governor vetoes from each line item the amount associated with an enhanced FMAP extension. If Congress eventually passes legislation that includes additional FMAP funding, the Governor could then file supplementary budget legislation that would propose how to spend those dollars. Most of the Governor’s vetoes are, thus, more related to process than substance. The Legislature identified $374 million in cuts that will be made if Congress fails to extend FMAP. As the fiscal year starts tomorrow and Congress has not authorized that money, the Governor’s vetoes clarify that without the revenue source those cuts will take effect. Without an FMAP extension states across the country will be forced to make cuts that will have a direct effect on the people who will lose access to health care, child care, higher quality schools, and other services. These cuts will also weaken the national economy and cost jobs at a time when the economic recovery remains fragile.