As the Congressional August recess nears, advocates must ensure that before Congress leaves it addresses critical measures to provide relief to states through an extension of the increased federal funding match for Medicaid programs (FMAP). Without the extension, cuts will have to be made to areas outside of health as well, like education, local funding for essential services, and safety net programs.

Both the U.S. Senate and House previously passed legislation separately to extend the increased federal match to June 2011, which was originally provided by the Stimulus legislation and set to expire on December 31, 2010. These actions led the majority of states across the country to assume these funding levels in their state budgets, which would help to avert even deeper cuts as states face significant shortfalls.

Now, under pressure to not add to the federal deficit, Congress is pulling back and leaving states with difficult decisions. Michigan--already dealing with a $1.7 billion shortfall in the fiscal year 2011 budget (starts Oct. 1, 2010)--will have to close an additional gap of $560 billion without the extension. Senate Republicans just yesterday announced their plans to replace this lost funding would rely solely on cuts.

Cuts to the state budget to close the gap would not only be to health insurance access through reductions to the Medicaid and MIChild programs, but the loss of FMAP funding would have far reaching effects beyond health, impacting state revenue for other essential programs such as funding to communities for critical local services, higher education and safety net programs--all of which are essential to Michigan's well-being.

Further, additional federal assistance remains essential for state economies for other reasons as well. The chief economist of Moody's Economy.com, Mark Zandi, estimated that the decisions states would need to make in the absence of additional federal help, like FMAP, could result in the loss of 900,000 jobs nationwide. Avoiding more job losses in Michigan should be a top priority. Plus, more jobs now will mean less debt later.

Take action by sending a letter to your Representative and Senators Carl Levin and Debbie Stabenow.

You can also sign-on your organization to a letter to the Michigan Congressional delegation by emailing Alicia Guevara at Michigan's Children. View the letter and take action.

Read the statement released by Michigan's Children on July 12, 2010 calling on Congress to act on extending FMAP.

Your action is critical! Thank you for your advocacy!