Effect of FMAP Cut on Line Items in PA's Budget - Courtesy of The Advocate's Agenda

From The Advocate's Agenda, published by Cathleen Palm. To sign up, please email Cathy at cpalm@theadvocatesagenda.com . You can also go directly to the state budget website to see all line items in the newest budget . August 31st ā Two weeks ago Governor Rendell announced that he was āeffectuatingā his plan to plug the $282 million state spending deficit that exists as a result of Congress passing a smaller than promised enhanced federal Medicaid match rate (FMAP). Included in Rendellās plan was the decision to place approximately $200 million in recently enacted spending into budgetary reserve ā a process Rendell assured meant that the āmoney will never be spent.ā Today, the Rendell Administration unveiled the appropriations that will be impacted by some percentage of a cut. While Rendell in mid August implied reductions would be across-the-board and rise to a cut of 1.9 percent there was always speculation that some discretionary lines would be insulated. Todayā...