As Michigan faces an estimated shortfall of
$1.7 billion in its fiscal year 2011 budget,
further deep cuts will be inevitable if
lawmakers fail to address the need for new
revenue by modernizing the state's tax system
to match our current economic realities.
In the current budget, state lawmakers relied
heavily on federal stimulus dollars under the
American Recovery and Reinvestment Act (ARRA)
to prevent even deeper cuts than those
ultimately adopted. ARRA included an
increased federal funding match for state
Medicaid programs. This temporary increase is
scheduled to end on December 31, 2010.
Congress has signaled intentions to extend
the temporary increase in federal funding for
Medicaid through passage of the American
Workers, State, and Business Relief Act of
2010 ("Job-Tax Extenders" bill), but momentum
has stalled as concerns about costs and how
to pay for the provisions included are worked
out.
It is important that Congress move quickly as
many states have assumed the temporary
extension of increased federal match for
Medicaid in their proposed budgets, including
Michigan. Without the temporary extension,
Michigan will have to make even deeper cuts
to Medicaid and other health and basic services.
The bill is expected to come to the House
floor this week on Thursday. Contact your U.S.
Representative NOW to support the
measure. After the its passage in the
House, it would return to the Senate for a vote.
Click
here to read more in our May 4 Action Alert.
