Growing need for medicaid strains states, New York Times

January 21, 2009
By Kevin Sack and Katie Zezima

LAWRENCEVILLE, Ga. — Medicaid rolls are surging, by unprecedented rates in some states, as the recession tightens its grip on the economy and Americans lose their employer-sponsored health coverage along with their jobs.

In a number of states, Medicaid populations grew by 5 percent to 10 percent in the last 12 months and, in many, the growth rate was at least double what it had been in the previous year. State Medicaid officials also say that because enrollment often lags behind job losses by several months, the growth in 2008 may represent only the leading edge of heightened demand.

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States continue spending sprees, USAToday

January 12, 2009
By Dennis Cauchon and Judy Keen

As a federal bailout takes shape, many states continue to spend money at boom-time rates even though revenue is sinking.

The mismatch between spending and revenue has left states facing projected shortfalls of up to $80 billion over the next six months, equal to as much as 10% of what states had planned to spend.

CASH-STRAPPED: States anxiously await federal funds

Forty-two state legislatures convene this month, and filling those gaps will be their top priority. A handful of states — notably California, Florida and New Jersey — have reduced spending, a USA TODAY review of state financial reports shows. Most have taken a wait-and-see attitude because spending cuts may not be needed if Congress approves a large federal aid package, and big spending hikes are a possibility.

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School officials want cut of federal bailout, USAToday

January 12, 2009
By Greg Toppo

If banks, insurance companies and automakers are getting a piece of Washington's bailout largesse, why not cash-strapped schools?

That's the thinking of officials at a few hard-pressed school systems, who have set wheels in motion to get a share of the $700 billion Troubled Asset Relief Program, or TARP, intended for ailing financial institutions, and the economic stimulus package now before Congress.

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Education groups compete for piece of the stimulus package, CQ Today Online

December 24, 2008
By Lydia Gensheimer

Teachers groups and school administrators, citing state budget shortfalls that are strangling local school districts, are continuing an end-of-the-year lobbying push to ensure education funding is part of the 2009 stimulus package.

Randi Weingarten, president of the American Federation of Teachers (AFT), sent a letter Tuesday to members of Congress and President-elect Barack Obama in which she detailed the AFT’s priorities for inclusion in the package. Weingarten said the legislation should provide fiscal relief to states, investment in infrastructure and measures to increase college access. Weingarten also called for a $3 billion temporary fund for school districts to pay for activities already authorized under the No Child Left Behind Act (PL 107-110) or the Individuals with Disabilities Education Act (IDEA - PL 105-17).

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Budget crisis threatens health care for poor, The Ledger (Lakeland, FL)

December 16, 2008
By Lloyd Dunkelberger


TALLAHASSEE Health care spending for some of the sickest and poorest Floridians could be on the chopping block as lawmakers look to resolve the state's budget crisis.

As part of the budget debate, a state health care official Tuesday outlined $1.2 billion in potential cuts in Medicaid, the state-federal health care program for the poor.

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Education and the Economy: Districts Making Tough Decisions, New America Foundation

December 15, 2008
By Jennifer Cohen

Last week we examined some of the strategies states are employing to pare down their education budgets in the face of the economic downturn. School districts are also affected by the simultaneous stress placed on federal, state and local education budgets. And they are considering some serious and often creative ways of rethinking their budgets for the current school year.

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States worry about slumping retail sales revenue, Reuters

December 15, 2008
By Jim Christie

SAN FRANCISCO (Reuters) - Todd Gerardo's layoff means work for someone else in Arizona, where state officials this month will have more than doubled their staff with new employees for processing unemployment benefits.

Gerardo, of Gilbert, Arizona, said he knew his days were numbered as a car salesman when he managed to make only minimum wage last month. His dealership let him go on December 3.

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