Collins, along with Senators Jay Rockefeller, Ben Nelson, and Gordon Smith, has been working for the past two years to win passage of a proposal that would increase the federal government's share of each state's Medicaid costs and provide block grants for social services.
"Fiscal aid to the states is an essential part of an economic growth package and I am disappointed that it is not included in the Chairman's first draft of this bill," said Senator Collins. "As a consequence of budget crises in states across our nation, at least 1.7 million people are at risk of losing their health care coverage because of state cuts to Medicaid that have already taken effect or are looming on the horizon. These are some of our most vulnerable citizens and they need our help. Our proposal would help avoid adding even more Americans to the growing ranks of the 41 million uninsured."
Earlier this year, Senators Collins, Rockefeller, Nelson, and Smith successfully offered a $30 billion fiscal relief package to the budget resolution. The amendment provided for at least half of the aid to be allocated through Medicaid relief. On March 20th, the Senate voted 80-19 in favor of Senator Collins's amendment.
The states are facing the most serious budget shortfalls in 50 years. The total deficits facing states is between $70 to $85 billion for the next fiscal year, beginning July 1st.
In addition to helping needy families, a recent study by Goldman, Sachs confirms that Senator Collins's proposal is a good way to stimulate economic growth. As states cut spending and raise taxes to balance their budgets, they take money out of the economy. Therefore, Collins's proposal would put money in the hands of the states that in turn will put it directly into the economy.
"If we cut taxes in Washington only to have taxes increased in capitals across this country, we will lessen the very economic stimulus we are trying to provide by cutting taxes. Therefore, we must help our partners, the states, who face a crisis of vast and still-expanding dimensions."