[NYAPRS Enews] State Leaders Laud FMAP Senate Passage, House Expected Back Next Week

[Harvey Rosenthal]

Silver, Sampson Breathe Sigh Of Relief On FMAP

Nick Reisman   Politics on the Hudson  August 4, 2010

The U.S. Senate cleared a legislative hurdle (yesterday) in approving an
extension for federal aid today, and the House is expected to take up
the measure later this month.

It will clear the way for the much talked-about federal Medicaid money
that Gov. David Paterson warned the state could lose if Congress failed
to approve the funds.

The governor warned today that the state isn't out of the woods yet, and
could still lose some of the $1 billion it had expected earlier this
year.

The state Legislature, at Paterson's behest, created a contingency fund
in case the money didn't come through. Paterson said the fund was still
necessary, but this alleviates some strain on the state budget.

Both Assembly Speaker Sheldon Silver, D-Manhattan, and Senate Democratic
Leader John Sampson, D-Brooklyn, issued statements expressing their
thanks to federal lawmakers in getting the bill through.

Silver said: "I commend the strong advocacy of Senators Charles Schumer
and Kirsten Gillibrand and their tireless efforts on behalf of all New
York's communities. I am confident the House will return to Washington
shortly and deliver this critical assistance to our state so that the
cuts that were contained in our budget may be alleviated as soon as
possible and programs and services that the Assembly majority fought so
hard to protect may be restored."

And Sampson went further, thanking the Maine Republican senators who
backed the bill in the end: "Today's procedural vote means New York's
healthcare systems will continue to provide quality care, school
districts will receive needed funding restorations, and hunger programs
will continue to serve those in need. I want to thank Senator Schumer,
Senator Gillibrand, the Senate Leadership, and Senators Olympia Snowe
and Susan Collins for their bipartisan leadership in delivering the
resources we need.  "I also want to thank Governor Paterson, Speaker
Silver, and Mayor Bloomberg for bringing our Congressional delegation
together two months ago to highlight the need for greater federal
funding for the states. I particularly want to thank Mayor Bloomberg for
going to Washington and personally lobbying Congress to help New York
get our fair share."

---------------------------------

 

Senate Clears Way for $26 Billion in State Aid

By DAVID M. HERSZENHORN  New York Times August 4, 2010

WASHINGTON - The Senate on Wednesday cleared the way for a $26 billion
package of aid to states and school districts, and the House speaker,
Nancy Pelosi, said she would summon members from their summer recess to
grant final approval to the bill.

The measure had been hung up by partisan wrangling between Democrats,
who said it was necessary to avert layoffs of teachers and cutbacks in
services by strapped states, and Republicans, who objected to another
round of government spending and characterized it as a political payoff
to unions.

The procedural vote in the Senate was 61 to 38, with the Maine
Republicans, Susan Collins and Olympia J. Snowe, joining Democrats in
support of ending debate. The Senate is set for a final vote on Thursday
before adjourning for its recess.

The vote quickly prompted calls for the House, which adjourned last
Friday, to return to Washington. And in a Twitter message Wednesday, Ms.
Pelosi said lawmakers would reconvene next week to approve the bill and
send it to President Obama.

The legislation would provide $10 billion to retain teachers who might
otherwise lose jobs to cutbacks, and an additional $16 billion to help
states struggling to close budget deficits.

While the move will interrupt summer campaigning, the vote will give
Democrats a concrete accomplishment that they can trumpet at a time when
unemployment remains high. Republicans, in turn, immediately criticized
the bill as catering to teachers' unions and another example of
irresponsible spending by Democrats.

Mr. Obama praised the Senate's action, saying in a statement that it
would save teacher jobs and ensure "cash-strapped states can get the
relief they need."

"We had a choice," said Rahm Emanuel, the White House chief of staff.
"Either teachers could be in the classroom or they could be on the
unemployment lines."

The House had approved money to save teacher jobs as part of an
emergency war spending bill. But the Senate rejected it.

Some senators complained that the House bill had cut some of Mr. Obama's
signature education initiatives, including about $500 million from the
competitive grant program called Race to the Top.

The cost of the Senate bill is fully paid with other spending cuts and a
provision to close a tax loophole.

House Republicans criticized the Senate measure.

"Democrats would be better off listening to their constituents, who are
asking, 'Where are the jobs?' rather than returning to Washington, D.C.,
to vote for more tax hikes and special-interest bailouts," said Michael
Steel, a spokesman for Representative John A. Boehner of Ohio, the
Republican leader.

Many governors have been clamoring for help for their states.

The $16.1 billion in aid to states would increase the federal
contribution toward Medicaid costs, allowing states to shift money
elsewhere.

"We saved people's jobs," the Senate majority leader, Harry Reid of
Nevada, said after the vote. "The bill," he added, "keeps hundreds of
thousands of teachers, firefighters, policemen and other civil employees
from being fired or laid off."

Republican leaders said that the aid had too many strings attached, and
that what Democrats called a tax "loophole" would amount to a nearly $10
billion tax increase on multinational corporations.

"Washington needs to take care of its own fiscal mess, not deepen it by
bailing out the states," said the Senate Republican leader, Mitch
McConnell of Kentucky.

Senator Judd Gregg, Republican of New Hampshire, said the bill was a sop
to organized labor. "It's to pay off education unions," he said.

Democrats said the measure would save as many as 140,000 teaching jobs.

While returning to the Capitol would disrupt campaign activities -
August is a busy month to shoot commercials and raise money - it could
also help Democrats avoid cantankerous town-hall-style meetings with
constituents.

Several lawmakers also planned to be on international fact-finding
trips, and it was unclear if everyone could make it back to Washington.

In her Twitter message, Ms. Pelosi said that duty called. "I will be
calling the House back into session early next week to save teachers'
jobs and help seniors & children," she wrote.

Jeff Zeleny contributed reporting.

 

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