FAA Air Transportation Modernization And Safety Improvement Act

Floor Speech

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Mr. DURBIN. Madam President, I come to the Floor today to discuss something very important to Illinois and so many others states FMAP.

As part of the American Recovery and Reinvestment Act, we increased the Federal matching rate for Medicaid, FMAP.

This is smart policy in a recession, because not only does it help people in a time of need, it is also one of the most effective ways to stimulate the economy.

Temporarily increasing Medicaid costs allows States to sustain their programs, rather than cutting them when families need them most.

It also generates business activity, jobs and wages in States that they would not otherwise have seen.

But the temporary FMAP increase we passed is scheduled to end on December 31 right in the middle of most States' fiscal year.

For the 3rd consecutive year, States are facing vast revenue shortfalls. One estimate is that States will face deficits of over $350 billion over the next 30 months.

As a result, at least 30 States are proposing cuts to their Medicaid programs for fiscal year 2011--cuts that will harm people right when they need help most.

These include cuts to eligibility, fewer benefits, more cost-sharing, and lower payments to the medical providers who see Medicaid patients.

The measure we are considering today would extend and phase out increases in the Medicaid matching rate for 6 months, through June 30, 2011.

It will provide $16.1 billion to States to ensure that they continue to receive an increased FMAP rate through the end of most States' fiscal years.

Illinois would receive about $550 million in Federal funding to help keep the State's Medicaid program afloat.

The spending in this measure is fully offset. It will not add a dime to the Federal deficit.

My home State of Illinois is facing a budget shortfall of $13 billion in FY11.

This is at a time when the unemployment rate was 10.4 percent in June, and the State's revenues from sales tax and individual and corporate income taxes are down more than $3 billion since the fiscal year 08 peak.

The State doesn't expect to return to fiscal year 08 revenue levels based on the current tax rates until fiscal year 15.

Because of this deficit the State has already started making hard choices.

Just last week, the Governor announced that to save $18 million, 2,700 non-union State workers would be required to take 24 days off without pay.

That is just one measure to save money, and they will be forced to consider additional painful cuts if we do not extend the increased FMAP rate through the end of the State's fiscal year.

Today, the Medicaid program in Illinois covers 2.6 million low- and moderate-income people in the State, including children, pregnant women and people with developmental disabilities and mental illness.

Illinois saw its FMAP rate increase from 50 percent to 62 percent as a result of the Economic Recovery spending.

The state of Illinois assumed a 6-month FMAP extension in its fiscal year 2011 budget.

Without an extension, the State will be short an additional $750 million this year.

Illinois has reviewed its Medicaid program, and determined that without an extension of the increased Federal matching rate, it may be forced to consider eliminating services for: 168,000 children from families with incomes just above the Federal Poverty Level; 18,000 adults from families with incomes greater than 133 percent of the Federal Poverty level; 200,000 adults covered by Illinois Cares RX--a state program that helps low-income adults afford prescription drugs; 63,000 children covered by Allkids--a comprehensive State program to provide insurance to kids who would otherwise not have health insurance.

Illinois was not alone in planning for a 6-month FMAP extension in 2011.

In fact, 30 States assumed that an extension would be provided, and as of today, about half of those states do not yet have contingency plans for how to balance their budgets if an FMAP extension is not passed.

If Congress does not extend the funds, governors and legislatures will have to revisit those budgets and consider new cuts, which will hurt the Nation's most vulnerable residents and will affect a variety of services.

These will be on top of cuts that have already been made over the past few years.

The National Association of State Budget Officers estimates that even as the need for State-funded services rose, states cut funding for services by 4 percent for fiscal year 2009 and almost 5 percent for 2010.

That's why 47 governors--Democrats and Republicans alike--have signed a National Governor's Association letter urging Congress to extend the Recovery Act's additional Medicaid funding.

In these difficult economic times, we are trying to help Americans return to work AND take care of those who are between jobs.

These benefits include continued access to quality health care under the Medicaid program.

Extending and phasing down the increased FMAP rate for another 6 months is a win-win for all of us. It will protect the most vulnerable during this time of need and provide immediate relief to State and local economies.

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