[NYAPRS Enews] NYS Budget Passes w Cuts to Fund FMAP Contingency Plan, MM Decries Impact on Medicaid, Eyes Turn to Congress

[Harvey Rosenthal]

NYAPRS Note: 125 days late, NYS has a budget that includes a
controversial across the board cuts to undisbursed state spending,
including the Medicaid and state aid community mental health services
rely on, if Congress creates state budget deficits by not extending
Federal Medicaid enhancements to the states. 

Medicaid Matters, a state coalition of Medicaid advocates that includes
NYAPRS, released the following statement late yesterday before the vote,
decrying the cuts and calling on the leaders to look instead to raise
needed revenues like the Governor's proposed tax on sugary beverages.
NYAPRS, Medicaid Matters and our allies will continue to press for
Congressional action to approve the FMAP, which is worth over $1 billion
to New York. 

 

125 Days Late, a State Budget With New Taxes

By Danny Hakim New York Times August 3, 2010

ALBANY - Lawmakers completed one of the latest budgets in New York State
history on Tuesday night, passing a last piece of legislation that will
raise an additional $1 billion - in part by increasing taxes on the sale
of clothing and on a variety of businesses. 

...A vote in the State Senate took place just before 8:30 p.m., ending
months of contentious negotiations, with the budget 125 days late. The
Assembly had earlier approved the budget, which is projected to be
$136.5 billion. Spending will increase by 2.4 percent over the previous
budget. 

Lawmakers had been passing the budget in pieces for several months, amid
a stalemate with Gov.
<http://topics.nytimes.com/top/reference/timestopics/people/p/david_a_pa
terson/index.html?inline=nyt-per> David A. Paterson. 

Democrats, who control the Legislature, feared the indignity of passing
the latest budget ever in an election year. The record was set in 2004,
when the budget passed on Aug. 11. 

The last piece of the budget passed on a party-line vote, 32 to 28, with
the Senate's tenuous Democratic majority holding together and no
Republicans voting in favor of the measure. Although the Legislature
passed a spending plan several weeks ago, it had been at loggerheads
with the governor on devising a way to pay for the final part of the
budget. 

....A number of other significant measures passed on Tuesday. Lawmakers
approved a plan to raise more than $1 billion through uniform,
across-the-board cuts to state programs, should Congress fail to approve
an increase in
<http://topics.nytimes.com/top/news/health/diseasesconditionsandhealthto
pics/medicaid/index.html?inline=nyt-classifier> Medicaid financing this
year. Legislators had long resisted approving the plan, but the governor
had insisted on it as it became increasingly uncertain that Congress
would increase the financing. 

http://www.nytimes.com/2010/08/04/nyregion/04albany.html?_r=1
<http://www.nytimes.com/2010/08/04/nyregion/04albany.html?_r=1&ref=nyreg
ion&pagewanted=print> &ref=nyregion&pagewanted=print 

 

 

cid:image001.gif at 01CB3337.C3C38660

For Immediate Release   August 3, 2010
Contact: Lara Kassel Coordinator  518-320-7100 office, 518-331-6758 cell

 

Statement Regarding FMAP Contingency Plan

"The NYS Legislature has passed a bill that would create a contingency
plan should Congress not come through with an extension of the current
enhancement of the Federal Medical Assistance Percentage, or FMAP.  The
plan would fill the gap anticipated should the FMAP extension not come
to fruition by imposing across-the-board cuts to state funds, including
a significant hit to Medicaid.

"Medicaid Matters New York has long opposed across-the-board Medicaid
cuts, as they impact community-based programs and safety-net providers
in a disproportionate way.  The organizations and providers that open
their doors to or go directly to the doors of Medicaid consumers seeking
care and services must be protected.  In addition, we must not forget
that a cut to state Medicaid spending equates to a larger cut overall
because of an automatic loss of Federal matching funds.  Cuts of this
magnitude could be avoided by enacting real revenue options, such as the
sugar-sweetened beverage tax.  Our Medicaid program and the people who
need it deserve state budgeting that is smart and strategic, not
short-sighted and politically expedient.

"Significant strides have been made to ensure that public dollars be
spent in the best possible way for New York's Medicaid program.
However, actions to make sweeping across-the-board cuts would only serve
to undermine what has been accomplished to this point, especially as the
implementation of Federal health reform happens.

"We urge Congress to come through with an extension of the FMAP
enhancement without further delay.  Should they neglect to do that, the
Governor and the Legislature must use their authority under this
contingency plan in a way that is fair and makes sense to the health and
well-being of all New Yorkers."

 

Medicaid Matters NY (MMNY) is a coalition of over 130 organizations
representing those New Yorkers most affected by policy debates on
Medicaid.  

For over six years, MMNY has brought the concerns and voices of Medicaid
recipients to the table in Albany.  MMNY is unique in that it is the
only organized, statewide coalition that speaks solely for Medicaid
beneficiaries.

For more information, contact Lara Kassel, MMNY Coordinator at
518-320-7100 or lkassel at cdrnys.org

 

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