The State Budget is a Train Wreck

Everyone knows how dire Pennsylvania's fiscal health is, unless you've been living under a rock (which may not be such a bad thing, given the circumstances).

The state budget is a train wreck, and that's on a good day.

Fiscal year-to-date General Fund collections are down $1.2 billion, or 4.8 percent, below estimate. And the Rendell Administration is banking on $850 million in FMAP funds that may not happen. FMAP is the Federal Medicaid Matching Assistance Program.

The cost of Medicaid is shared by federal and state government. To assist states in meeting greater demand for Medicaid during the economic crisis, Congress provided the states with a larger share of Medicaid matching funds. These funds, however, are scheduled to expire in December.

Pennsylvania and 29 other states were building their budgets with the expectation that the aid would be extended from its current end date. If the aid is not extended, the Commonwealth will be facing yet another serious challenge in crafting a budget for FY 2010-2011.

In the meantime, the governor is pushing his $29.8 billion spending plan (that includes the assumption of the FMAP money). Without FMAP, Rendell said his increase for basic education plus other programs would suffer cuts – not to mention more state employee layoffs.

Where does this leave us? Anyone with a crystal ball can take a guess, but one thing's for certain: our fragile social services and educational systems cannot sustain further cuts without serious consequences (just like last year!) of child care centers closing, teacher layoffs, increased class sizes and cuts to child abuse and family strengthening programs, to name a few.

There's got to be a better way. The first thing you can do is urge your member of U.S. Congress to support FMAP. The second thing you can do is to ask your state senators and representatives to support new revenue measures that will bring in more money for the Commonwealth – and all these programs and services we value so greatly for children and families.

You can do something to help fix the fiscal malaise. Use your voice and speak out – for kids across PA.

Joan L. Benso is president and CEO, PA Partnerships for Children