Seems like the Governor, and the State, just caught a little bit of a break, thanks to Senate Democrats (and Maine Republicans).
New Jersey's budget depended on about $570 million in emergency Medicaid money -- more than half the states in the country also relied on the money -- which was to be made available by maintaining a temporary increase in the FMAP, or the percentage of Medicaid money the Federal government reimburses to the states. However, just before New Jersey passed its budget in late June, Senate Republicans in D.C. filibustered a bill extending the FMAP increase for another year (as well as extending unemployment benefits), now that national Republicans are all election year deficit hawks.
The filibuster meant that a whole lot of states had holes in their budgets. New Jersey's budget hole was about $570 million. However, Senate Democrats finally got Senators Snowe and Collins to vote for the bill, breaking the filibuster and freeing up the money for the states.
What's interesting is that the Governor continues to show a willingness to use Federal funds in a manner opposed by his national party. Nationally, Republicans are proposing to rescind ObamaCare; in New Jersey, the Governor is relying on ObamaCare to pay for pharmaceuticals for the elderly, the disabled and the HIV+. Nationally, the Republicans want the Federal government to spend less; in New Jersey, the Governor is taking the increased FMAP money without reservation.
By contrast, Tim Pawlenty wouldn't take Federal money to finance Minnesota's health care programs for the poor. Pawlenty would not allow an increased number of Minnesotans to enter Medicaid before they would otherwise be able (in 2014) because it would have been an approval of the type of big government with which Pawlenty does not agree.
Perhaps all it means is that when Christie seeks higher office, he will be running against Washington. Or as a "maverick," if that term has not been tarnished beyond repair.
In any event, since the budget already assumes the FMAP money will be available, the action by Senate Democrats won't fund anything new. It will just keep next year's deficit down.
UPDATE: The FMAP train came in about $200 million short, which means there's still a pretty sizable hole in the budget.
Showing posts with label FMAP. Show all posts
Showing posts with label FMAP. Show all posts
Thursday, August 5, 2010
Sunday, June 27, 2010
Dear Trenton: This Is Why Voters Are Turning Independent
So there's a State budget in the legislature which has a $570 million hole in it. And no one in Trenton seems to care. Everyone intends to move this budget forward on the assumption that the money that isn't coming will eventually arrive. Call it the bi-partisan Tooth Fairy approach to budgeting.
Governor Christie does not want to raise the issue because:
1. After campaigning against balancing the budget on one-year fixes and other gimmicks, the Governor will have to admit that he used a one-time increase in Medicaid money to balance his budget;
2. While more than 30 states are in a similar situation, i.e., facing budget holes because of the failure of Congress to approve additional FMAP money, this Governor will be forced to admit that while he has been speaking in favor of forcing government to live within its means he has been willing to let the Federal government give New Jersey money borrowed from taxpayers in order to close New Jersey's budget deficit; and
3. The Governor is facing a mini-revolt within his own party because of the tax increases in this budget, and were he to admit to a $570 hole while pushing a budget that includes now-unfunded programs demanded by Democrats he may lose even more votes from within his own party.
New Jersey Democrats do not want to raise the issue because:
1. They do not want to jeopardize the funding for their pet programs they just got reinstated in the budget compromise with the Governor; and
2. When it turns out that this Governor's budget, voted for by every Republican in the Senate and Assembly, has a hole roughly equal to the amount of money the Millionaires Tax would have brought in, Democrats expect to make political hay.
And so it becomes apparent that there are two holes in Trenton. One is a $570 million hole in the budget. The other is the gaping distance between our government and the taxpayers.
The taxpayers want the budget done right. They don't care who is in and who is out, they don't care who is seeking national office, they just want their government to put the taxpayers first. And knowingly passing a budget that the State cannot afford is just bad government.
To the Republicans and Democrats in Trenton, a pox on both your houses. We taxpayers are ready to take our medicine and live within our means. Please put your personal ambitions and petty grievances aside and for once give us an honest budget we can afford.
Governor Christie does not want to raise the issue because:
1. After campaigning against balancing the budget on one-year fixes and other gimmicks, the Governor will have to admit that he used a one-time increase in Medicaid money to balance his budget;
2. While more than 30 states are in a similar situation, i.e., facing budget holes because of the failure of Congress to approve additional FMAP money, this Governor will be forced to admit that while he has been speaking in favor of forcing government to live within its means he has been willing to let the Federal government give New Jersey money borrowed from taxpayers in order to close New Jersey's budget deficit; and
3. The Governor is facing a mini-revolt within his own party because of the tax increases in this budget, and were he to admit to a $570 hole while pushing a budget that includes now-unfunded programs demanded by Democrats he may lose even more votes from within his own party.
New Jersey Democrats do not want to raise the issue because:
1. They do not want to jeopardize the funding for their pet programs they just got reinstated in the budget compromise with the Governor; and
2. When it turns out that this Governor's budget, voted for by every Republican in the Senate and Assembly, has a hole roughly equal to the amount of money the Millionaires Tax would have brought in, Democrats expect to make political hay.
And so it becomes apparent that there are two holes in Trenton. One is a $570 million hole in the budget. The other is the gaping distance between our government and the taxpayers.
The taxpayers want the budget done right. They don't care who is in and who is out, they don't care who is seeking national office, they just want their government to put the taxpayers first. And knowingly passing a budget that the State cannot afford is just bad government.
To the Republicans and Democrats in Trenton, a pox on both your houses. We taxpayers are ready to take our medicine and live within our means. Please put your personal ambitions and petty grievances aside and for once give us an honest budget we can afford.
Friday, June 25, 2010
Washington Republicans Blast A Hole In New Jersey's Budget
There’s a gaping hole in New Jersey’s proposed budget.
Last night, Republicans in Washington refused to allow HR 4213 to come to the Senate floor for a vote – they filibustered it. HR 4213 is primarily thought of as a bill to extend jobless benefits for the long-term unemployed. However, the bill also included a 6 month extension of enhanced Federal Medical Assistance Percentages, i.e., more money for the states.
The budget currently under consideration in the New Jersey legislature relies on that extended FMAP money. In fact, it may be these very funds Governor Christie relied on when he restored a prescription drug benefit for seniors. And he restored that program to blunt the Democratic push to extend the Millionaires Tax.
There is no fallback plan in place to restore those lost FMAP dollars, which may actually exceed $570 million. A few weeks ago, David Rosen, legislative budget and finance officer for the Office of Legislative Services, observed that if the enhanced FMAP money evaporated New Jersey would have a serious issue.
Since the Governor is already facing some rebellions from Republican legislators who object to the tax increases already in the budget, the Governor is going to have a tough time replacing those lost FMAP dollars.
UPDATE: Treasury spokesman William Quinn has been quoted as saying that the Governor will move forward on the assumption that the $570 million in FMAP money is still on the way. But since the surplus is only $300 million, that's one risky assumption. Apparently, no one has the political will to actually get the budget right this late in the game.
Last night, Republicans in Washington refused to allow HR 4213 to come to the Senate floor for a vote – they filibustered it. HR 4213 is primarily thought of as a bill to extend jobless benefits for the long-term unemployed. However, the bill also included a 6 month extension of enhanced Federal Medical Assistance Percentages, i.e., more money for the states.
The budget currently under consideration in the New Jersey legislature relies on that extended FMAP money. In fact, it may be these very funds Governor Christie relied on when he restored a prescription drug benefit for seniors. And he restored that program to blunt the Democratic push to extend the Millionaires Tax.
There is no fallback plan in place to restore those lost FMAP dollars, which may actually exceed $570 million. A few weeks ago, David Rosen, legislative budget and finance officer for the Office of Legislative Services, observed that if the enhanced FMAP money evaporated New Jersey would have a serious issue.
Since the Governor is already facing some rebellions from Republican legislators who object to the tax increases already in the budget, the Governor is going to have a tough time replacing those lost FMAP dollars.
UPDATE: Treasury spokesman William Quinn has been quoted as saying that the Governor will move forward on the assumption that the $570 million in FMAP money is still on the way. But since the surplus is only $300 million, that's one risky assumption. Apparently, no one has the political will to actually get the budget right this late in the game.
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