SUNBURY — When Congress stripped enhanced federal funding for public health and human services from the Unemployment Compensation Extension 2010 bill, which was signed into law Friday, it denied Pennsylvania $850 million, which Gov. Ed Rendell was relying on to balance his 2010-2011 budget.
The funding, called FMAP, refers to the federal percentage of matching funds for state Medicaid expenditures.
With Congress failing to approve the FMAP funding extension — due to expire in December — Rendell and legislative leaders will have to find another way to balance the budget. This will likely require funding cuts for critical human services such as medical assistance, child protective services, mental health/mental retardation services and domestic violence counseling.
"I am disappointed that the FMAP extension was stripped by the Senate, leaving Pennsylvania with a budget gap and crucial services at risk," said U.S. Rep. Chris Carney, D-10, Dimock, Saturday afternoon. "I am, however, happy that the Senate finally acted to extend unemployment benefits. While I believe that significant savings can be achieved by reducing these benefits, to end them all at once is simply bad economic policy. As the economy improves we must phase out these extra benefits in a responsible manner."
Nothing good can come of the $850 million shortfall, state Rep. Russell Fairchild, R-85, Lewisbug, said Thursday. Fairchild had voted against the budget because "I didn't want to vote for a budget based on revenues that I thought we might not get."
He turned out to be right. "Unfortunately," he added.
Fairchild noted that the shortfall would likely mean re-opening the state budget, "to find other revenue sources and make cuts."
Some of those cuts may eventually impact education, which received a significant funding increase of $250 million in Rendell's 2010-2011 budget.
In a letter sent out to school superintendents on July 20, just prior to the U.S. Congressional vote, Pennsylvania state Education Committee chairman Senator Jeffrey E. Piccola, R-15, York, warned district leaders "not to rely upon state funds that have been approved, but may never come to fruition. Be exceedingly prudent as you budget for your school district, going forward.
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