Yesterday it came to light that New York faces a $47 billion defecit in the next four years. As a result, it should come as no surprise that New York Governor David Paterson is asking Congress to pass a bill which gives states cash.
Reuters: Paterson said in prepared testimony other measures Congress is considering to revive the country’s economy are important, but “much of the good that would be done through proposals like expanding unemployment or food stamp benefits would be undone if states do not receive necessary federal budget relief.”
Like emergency block grants — the direct cash assistance that was given to states in 2003 — increasing the federal share for Medicaid would help states, Paterson said during a House of Representatives hearing held on the economic downturn.
States and federal government jointly administer the health-care program for the poor and Paterson asked that the federal government reimburse states for at least 5 per cent of their contributions through 2011.
“It could make the difference between targeted, surgical spending reductions that will help heal our fiscal condition and massive and wide-ranging cuts that will cause irreparable damage to millions of families,” he said about the direct assistance.
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