Action Alerts
July 1, 2010
URGENT ACTION ALERT!!!
Failure to Pass FMAP Extension Greatly Worsens CA Budget
California Delegation Needs to Hear From You!
In recent months, Congress has appropriated literally hundreds of billions of dollars to stimulate the economy, create jobs and bail out banks or other businesses deemed “to big to fail”. Unemployment remains high. The economy remains sluggish. And credit remains too unavailable.
Yet now, even with a track record of aggressive if often misguided or ineffectual spending, some in Congress are NOW beginning to worry about the size of the deficit and are using that “worry” as an excuse not to fund a vital enhancement of federal funding for Medicaid services!
Over 30 States, including California, have built their budgets in great part on the promise of a 6-month extension of an enhanced Federal Medical Assistance Percentage (FMAP). In California alone the expectation was for $1.8 billion in additional Medicaid funding, $200 million of which was targeted for DDS.
The following short article from ANCOR tells the story of failure on the part of the Senate. Similar failure occurred a couple of weeks ago in the House of Representatives.
After Three Tries, Not Enough Votes, and in the Midst of Partisan Recriminations, the Senate Shelves Extenders Bill with FMAP Extension
A month-long effort by Senate Democrats to pass a jobs and extenders bill that included a six-month extension of additional federal Medicaid assistance to states collapsed Thursday evening when a motion to end debate failed to gain the necessary 60 votes. The 57-41 vote was on a new $109 billion substitute bill with a scaled back $16.2 billion FMAP provision introduced June 23rd. The vote was along party lines with only Senator Nelson (D-NE) voting with Republicans. Senators Byrd (D-WV) and Murkowski (R-AK) were absent for the vote. After the defeat, Senate Majority Leader Reid (D-NV) charged that “this process has been abused, saying that the ball is now in Republicans’ court. We have done everything that we could.” He immediately pivoted to other legislation on a small business tax bill. Reid stated that the extenders bill, which included an extension of unemployment benefits, would remain intact and not attached to other legislation.
Senate Finance Chairman Baucus (D-MT) said he spent nearly eight weeks modifying the bill, reducing tax hike provisions, cutting spending and adding offsets to address Senators’ concerns and woo support, in particular, of Senators Collins (R-ME), Snowe (R-ME), and Nelson (D-NE). The new substitute offered mid-week included offsets for everything but extension of unemployment benefits. The FMAP provision was trimmed by $8 billion and reduced the enhanced federal match to states from 6.2% to 3.2% and 1.2% in the second and third quarters of FY 2011. Although this week’s cloture vote gained more support than the failed effort last Thursday, the vote demonstrates member focus on the deficit. However, without additional federal assistance to states and provisions to help individuals and small businesses, many states will now have to revisit their budgets and make deeper cuts in public services—including Medicaid programs.
ANCOR appreciates our members repeated contacts to Senators and Representatives over the past several months to pass legislation that included an extension of the additional federal Medicaid assistance.
The Washington insiders are paying close attention to a growing national movement frustrated with massive new federal spending with highly ineffective outcomes. But they need to pay closer attention to those situations that will mean to most to people nationwide – including the extension of FMAP.
It may be more important for many to let Congress know what we think GENERICALLY of their actions. But it is more important to those of us in California and in 30 other States to let our Congress Members know right now how important and negative has been their VERY SPECIFIC ACTION to reject extension of FMAP!
URGENT ACTION REQUEST!
We are asking that you once again put pencil to paper (OK – type a letter on your word processing device!) and make your thoughts known.
The letter to Senator Diane Feinstein and Senator Barbara Boxer can be “thanks for your support” but with the added comments that “the job is still not done! We desperately rely on your leadership to help California avoid a very real deepening of our already severe budget crisis”.
The matter is not so clear for us in the House. While primarily Republican opposition led to the failure of the Senate to win approval, it was through behind-the-scenes bi-partisan actions by many, including moderate Democrats in California that led to removing the FMAP extension from their version of the bill. But there are no recorded votes! We can think what we think, and even know what we know, but we can’t accuse anyone without proof!
So – please use this sample letter as a template. Write to AT LEAST your Member of Congress and FAX that letter as soon as possible. If you can, copy the remainder of the California Delegation. But surely contact your own Member. If you are unsure about who your Representative is, go to http://www.house.gov/zip/ZIP2Rep.html and type in your Zip Code! Very easy! Thanks for your efforts!
SAMPLE LETTER
DATE
The Honorable _________________
United States House of Representatives
Address (see below)
Washington, DC 20515
RE: RECONSIDER EXTENSION OF FMAP!
Dear Congress Member __________________,
I am (introduce yourself; executive director, manager, direct care staff, board member, business partner, supporter etc.) of (Name of agency) serving the communities of (list your communities!)
California’s severe budget crisis is bad enough. But the failure of Congress to approve a 6-month extension of enhanced federal funding for Medicaid programs, many of which are mandated by Congress, has simply made the problem far worse.
The overall loss to California alone is nearly $2 billion! For people with developmental disabilities (mental retardation, autism, cerebral palsy, epilepsy and similar conditions) the loss in the specific programs funded by our Department of Developmental Services is $200 million!
If you and your colleagues do not reverse this failure to act and get these vital dollars into California, you will be subjecting the people we seek to serve; the vulnerable people you should very much care most about supporting, to unsustainable funding cuts and loss of critical services and supports.
I have watched Congress appropriate hundreds of billions of dollars in recent months for things you have said are your priorities. In some cases, I question both the priority and the effectiveness of the effort.
But I simply cannot understand, nor do I accept, the failure of Congress to make funding for some of our State’s most vulnerable citizens a top priority.
I urge you in the strongest possible terms to take immediate action and reverse this failure to fund FMAP. I am watching very closely and believe that the decision you make and the leadership you show can be one of the deciding factors in avoiding yet another human tragedy in California.
Please do all within your power to approve full funding of an extension of the Federal Medical Assistance Percentage (FMAP).
Sincerely,
Signature
Title