In a tight budget year, it’s no surprise that a considerable amount of time has already been expended at the Capitol in Jefferson City on how best to stretch the state’s limited resources. The fact that Missouri stands to receive more than $4 billion in federal stimulus money has only heated the debate on where those additional dollars should be applied.
The House Budget Committee wants to limit how much of the stimulus money is included in the state’s operating budget. The House budget proposes using $619 million in federal stimulus money to replace state money that otherwise would have gone to public schools and universities. It then spends about $323 million of that freed-up state money elsewhere in the operating budget.
How the remaining $296 million would be used has yet to be determined. There are those who wish to spend at least a portion of that money on Medicaid and other social services programs. Thus far House Democrats have been unsuccessful in attempts to put into the budget Gov. Jay Nixon’s plan for extending Medicaid coverage to approximately 35,000 adults.
The governor has proposed using $52 million from hospitals that would then attract $93 million in federal funds. The hospitals would pay an additional $22.1 million in taxes and forgo $30.7 million that the facilities normally would get from the state to partially reimburse them for the costs of treating uninsured patients, according to the Department of Social Services.
House Republicans have questioned the wisdom of expanding welfare programs during a recession. We find ourself in agreement.
Expanding those social programs utilizing what is likely one-time stimulus dollars is risky. What happens once those dollars are spent? We fear that Missouri would be in a position of having push people out of those programs.
We applaud the governor’s desire to extend Medicaid coverage. However, we need to make certain that a consistent revenue source is available so the extended coverage is not provided on a short-term basis.
Hannibal, MO —
