Last week, we wrote about the budget troubles facing states in this sputtering economy, with nearly half of them already proposing or enacting cuts to Medicaid. The reason is clear: 49 states have some form of legal balanced-budget requirement, and Medicaid, which is paid with a combination of state and federal funds, eats an enormous [...]
Rising unemployment is creating greater demand for Medicaid, while home values and consumer spending are down, leaving less revenue for states to fund such safety-net programs. Many expect the situation to grow worse.
The states’ collective budget shortfall is estimated to be $30 billion and rising. Required by law to balance their books, states are cutting social services even as demand is rising. Can Congress come to the rescue?
While the McCain campaign’s attacks on Sen. Barack Obama’s connection to former Weatherman William Ayers will likely dominate today’s news cycle, the Wall Street Journal is out with a story this morning with far larger implications for millions of Americans.
According to the newspaper:
GOP Gov. Donald Carcieri’s plan would leave the most vulnerable without health care coverage, critics say.
For months, congressional leaders and the White House have skirted the possibility of a second economic stimulus package, saying they wanted to allow time for their first effort — those billions in $600 rebate checks — to trickle through the economy.
But on Tuesday, House Majority Leader Steny Hoyer (D-Md.) said that Congress will likely take [...]