FACTBOX-States and extension of stimulus Medicaid funds

By Reuters / June 10, 2024

WASHINGTON, June 10 (Reuters) - Under the $863 billion U.S. stimulus plan passed last year, states were given extra money for Medicaid. The healthcare program for the poor and disabled is administered by the states, with partial reimbursements from the federal government. On average the program takes up 20 percent of state budgets but that proportion swells during recessions as job layoffs push more people to seek
government-subsidized healthcare.

The extra money runs out in December. Still, many governors and state legislatures expected Congress to approve a six-month extension of the Medicaid funding boost and 30 states have included the extension in their budgets for fiscal 2011, which for most starts July 1.

A measure to extend enhanced Medicaid funding that is estimated to cost $24 billion is faltering in the U.S. Congress and governors and legislatures have begun lobbying for it to pass soon. Some states have already passed their budgets, which means they will have to call special legislative sessions to find cuts if Congress does not approve the extensions. Other states, such as California, are currently negotiating budgets.

Below are some of the estimates of how states will be impacted if the measure fails to become law. The dollar amounts indicate how much they are expecting to receive under the extension for fiscal 2011.

 ALASKA

 $60 million

 CALIFORNIA

 $1.8 billion

 COLORADO

According to the Denver Post, the state will face a $211 million budget hole and make cuts to K-12 education without the extension.

 CONNECTICUT

 $264 million

FLORIDA

 $270 million

One of a few states with contingency plans for other funding if Medicaid boost is not extended.

 GEORGIA

 $370.5 million

 IDAHO

 $68 million

 IOWA

 $115.9 million

 KANSAS

 $130 million

Will have to lay off up to 4,000 teachers if the money is not approved.

KENTUCKY

 $257 million

MAINE

 $85.5 million

Will begin statewide cuts on Oct. 1 if extension is not approved by July 1.

 MARYLAND

 $389 million

Will transfer $200 million from an income tax reserve if extension is not approved.

MASSACHUSETTS  

$608 million

Governor Deval Patrick has proposed cutting 3.6 percent of all budgets in the state, except for schools, local aid and debt service if the extension does not pass.

 MICHIGAN

 $514 million

 NEVADA

 $88.5 million

 NEW JERSEY

 $490 million

 NEW MEXICO

 $150 million

 NEW YORK

Governor David Paterson said the state's deficit will balloon to $10.2 billion from $9.2 billion if the measure does not pass.

 PENNSYLVANIA

 $850 million

Will have to lay off 20,000 employees if the money is not approved.

 RHODE ISLAND

 Expects more than $95 million

 SOUTH CAROLINA

 $230 million

The extension has its own separate budget section and is considered a contingent appropriation.

 TEXAS

 $900 million

 VERMONT

 $62.8 million

Will have shortfalls in prison, hospital outpatient services and drug abuse treatment programs without the extension and will have to cut nursing home funds and other healthcare programs.

 WASHINGTON

 $480 million

Will have to lay off 6,400 employees if the money is not approved.

ARIZONA, ARKANSAS, DELAWARE, INDIANA, LOUISIANA, MISSISSIPPI, MONTANA, NEBRASKA, OHIO, OREGON  VIRGINIA, WEST VIRGINIA, WISCONSIN, WYOMING

States that have not included the extension in their budgets. Many have biennial budgets, meaning they make spending plans on a two-year basis and passed budgets for fiscal 2011 long before Congress began considering the extension.  (Sources: National Conference of State Legislatures,
Governors' offices, local media)   (Reporting by Lisa Lambert; Editing by James Dalgleish)