President McEntee presses at House hearing for fiscal relief to ailing states

July 25, 2008 - Ohio is not alone. Public employees here and across the nation recently experienced layoffs, and may face even more.

In fact, at least half of all states are facing a budget crisis and are planning additional cuts in health care, education, public safety and aid to local governments. Millions of aging and disabled individuals and children are at risk of losing their health care coverage.

AFSCME President Gerald W. McEntee testified on July 22 before the House Energy and Commerce Subcommittee on Health, calling for Congress to address the growing state budget crisis through an increase in federal support for state Medicaid programs. 

During the packed hearing, the Subcommittee heard how state budgets are under severe stress, with revenues plummeting and the demand for health care and other services rising. 

When states cut Medicaid, other public services, and aid to local governments to balance their budgets, it hurts individuals, communities and the economy.  In 2003, Congress provided states with a $10 billion increase in federal funds for Medicaid and $10 billion in other grants. 

H.R. 5268, a bipartisan bill introduced by Reps. Frank Pallone (D-NJ), Peter King (R-NY), John Dingell (D-MI) and Thomas Reynolds (R-NY), would provide states with an increase in federal support for Medicaid, help stimulate state economies and prevent cuts in health care programs. 

AFSCME is pressing Congress to include such state relief in a second stimulus bill which may be considered in September. 

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