We recently reported that Minnesota will receive an additional $263 million in federal Medicaid funding. Minnesota policymakers have been waiting since January for Congress to approve this funding, but there is one last step: Governor Tim Pawlenty must certify that he will accept it by September 24.
The additional federal health care dollars would come at a time when the state is facing large budget deficits, and could prevent deeper budget cuts than would be necessary without the federal money. Temporary aid to states, such as the extra Medicaid money, is one of the most effective things the federal government can do to keep and create jobs and increase demand in the economy. The enhanced Medicaid payments approved by Congress and signed into law by the President will provide Minnesota and other states with continued vital federal aid through the end of the current state fiscal year (June 30, 2011).
Minnesota has already received nearly $1.3 billion in additional federal Medicaid dollars since February 2009 when Congress passed the first round of economic recovery legislation; money that has protected health care for thousands of Minnesotans and saved health care jobs in our state.
Governor Pawlenty has supported this additional funding for Minnesota in the past, and included it in his supplemental budget proposal on February 15. However, Congress had not yet made a final decision by the time the state budget was wrapped up in May, so that final agreement did not count on federal funding that was uncertain.
Minnesota cannot afford to leave $263 million in federal funding sitting on the table. Minnesota is facing a $5.8 billion deficit next biennium. Not accepting the federal money would put the state in a weaker position for what already will be very difficult budget decisions for FY 2012-13.
We urge Governor Pawlenty to certify that he will accept the additional $236 million in federal aid that is desperately needed in this difficult economic environment. He should note that the additional federal aid to states does not add to the federal deficit, because it was offset by other spending cuts and tax changes.
- Steve Francisco and Scott Russell
