Senate Passes Tax Cut Bill That Includes Funds for State Medicaid Programs

Fri, 30 May 2003 08:24:51 -0700 (PDT)

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From: California Healthline [mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM] 

Sent: Tuesday, May 27, 2003 9:53 AM

Senate Passes Tax Cut Bill That Includes Funds for State Medicaid Programs 

05/27/2003 

As expected, the Senate on Friday voted 51-50 to approve a $350 billion compromise tax cut bill ( <http://thomas.loc.gov/cgi-bin/query/z?c108:h.r.2:> HR 2) that includes additional funding for state Medicaid programs, the Wall Street Journal reports (Murray, Wall Street Journal, 5/23). Under the bill, states would receive $20 billion in federal aid, $10 billion of which would be used to increase federal matching rates for Medicaid by 2.95 percentage points until Oct. 1, 2004. The other $10 billion would be evenly divided over two years for states to use on health care, social services, public safety, education, job training, transportation and infrastructure, law enforcement or other "essential government" services. The compromise bill does not include additional funds for Medicare providers in rural areas, as sought by Sen. Charles Grassley (R-Iowa). The House approved the compromise measure early Friday morning ( http://www.californiahealthline.org/members/basecontent.asp?!
 contentid=48791&collectionid=3&program=1 California Healthline, 5/23). According to the Wall Street Journal, the state aid package represents a "fraction" of the estimated $85 billion budget shortfall that states collectively face in fiscal year 2004 (Calmes, Wall Street Journal, 5/23). President Bush plans to sign the bill by the end of this week, the http://www.nj.com/news/ledger/index.ssf?/base/news-8/105375694882960.xml Knight Ridder/Newark Star-Ledger reports (Kuhnhenn, Knight

Ridder/Newark Star-Ledger, 5/24). 

Brian Potts 
Managing Editor, CAL/AAEM News Service 
MS-IV, UC-Irvine

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<DIV>
-----Original Message-----
From: California Healthline [<A href="mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM">mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM</A>] 
Sent: Tuesday, May 27, 2003 9:53 AM


Senate Passes Tax Cut Bill That Includes Funds for State Medicaid Programs 
05/27/2003 
As expected, the Senate on Friday voted 51-50 to approve a $350 billion compromise tax cut bill ( &lt;<A href="http://thomas.loc.gov/cgi-bin/query/z?c108:h.r.2:">http://thomas.loc.gov/cgi-bin/query/z?c108:h.r.2:</A>&gt; HR 2) that includes additional funding for state Medicaid programs, the Wall Street Journal reports (Murray, Wall Street Journal, 5/23). Under the bill, states would receive $20 billion in federal aid, $10 billion of which would be used to increase federal matching rates for Medicaid by 2.95 percentage points until Oct. 1, 2004. The other $10 billion would be evenly divided over two years for states to use on health care, social services, public safety, education, job training, transportation and infrastructure, law enforcement or other "essential government" services. The compromise bill does not include additional funds for Medicare providers in rural areas, as sought by Sen. Charles Grassley (!
 R-Iowa). The House approved the compromise measure early Friday morning ( <A href="http://www.californiahealthline.org/members/basecontent.asp?contentid=4"><A href="http://www.californiahealthline.org/members/basecontent.asp?contentid=48791&amp;collectionid=3&amp;program=1">http://www.californiahealthline.org/members/basecontent.asp?contentid=4</A>8791&amp;collectionid=3&amp;program=1</A> California Healthline, 5/23). According to the Wall Street Journal, the state aid package represents a "fraction" of the estimated $85 billion budget shortfall that states collectively face in fiscal year 2004 (Calmes, Wall Street Journal, 5/23). President Bush plans to sign the bill by the end of this week, the <A href="http://www.nj.com/news/ledger/index.ssf?/base/news-8/105375694882960.xm"><A href="http://www.nj.com/news/ledger/index.ssf?/base/news-8/105375694882960.xml">http://www.nj.com/n!
 ews/ledger/index.ssf?/base/news-8/105375694882960.xm</A><FO

NT size=2>l</A> Knight Ridder/Newark Star-Ledger reports (Kuhnhenn, Knight</P>
<P>Ridder/Newark Star-Ledger, 5/24). </P></FONT></DIV><BR><BR><STRONG>Brian Potts <BR>Managing Editor, CAL/AAEM News Service</STRONG> <BR>MS-IV, UC-Irvine<p><hr SIZE=1>
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