Reprinted from DPW Budget Updates (6/4/10):

On the Friday before Memorial Day, the U.S. House of Representatives took action on the American Jobs and Closing Tax Loopholes Act. The bill was to have been the House vehicle to extend the enhanced federal matching dollars for the Medical Assistance Program.

This legislation is worth $850 million in next year’s budget for PA—more than 7% of the DPW general fund budget. The Governor’s proposed budget, along with the state budgets of 29 other states, assumed passage of this extension. Forty-seven governors from states across the political spectrum have urged Congress to pass the “FMAP extension.”

Layoffs

Without this Act, PA will be forced to implement deep budget cuts and would face potential layoffs of as many as 25,000 state employees.

State, county and municipal jobs as well as jobs at private employers would be impacted, including health care and human service workers, teachers, emergency services personnel, and police. This level of budget cuts and layoffs would have a ripple effect in communities across the commonwealth. PA’s economy has just begun to climb out of the recession—PA has added 54,000 new jobs in the last two months—drastic cuts could cripple the state’s recovery.

Service Cuts

Cuts would mean reduced services for all Pennsylvanians including closures of state and local parks and libraries, the termination of health care for thousands, elimination of public health services, reductions in school services and the slashing of environmental protection efforts.

If You Want to Help

The House passed the bill on Friday May 28, 2010 without the FMAP extension included.
The Senate is slated to consider the bill next week, the week of June 7. Senate leadership plans to include the FMAP extension in the bill.

Pennsylvanians can let their U.S. Representatives understand the importance of the FMAP extension to PA communities.

For information on how to find and contact your U.S. Representative click here.

To learn about a coalition to working on this critical federal funding click here.