COLLINS PREVAILS IN QUEST TO PROVIDE AID TO STATES

WASHINGTON, D.C. - Senator Collins this evening announced that the $20 billion in emergency state fiscal relief she added to the Senate-passed economic growth package will be included in the final version of the bill set to become law later this week. Once President Bush signs the legislation, Maine will begin receiving $116 million over the next two years, roughly half of which can be used to provide health insurance to low-income citizens through Medicaid and half to help the state cope with its deep budget hole. "I am delighted that the final economic growth package will include $20 billion in temporary fiscal relief to help our states that remain awash in red ink," said Senator Collins. "This is good news for states, good news for working families who were facing state tax increases, and good news, especially, for our neediest Americans, for whom basic health care often would not be available without Medicaid."

Collins's amendment will help Maine avert cuts to the Medicaid program that would have left thousands of Maine citizens without any form of health insurance coverage.

"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. That is why I am particularly pleased that the final tax bill retains our provision directing half of the state aid, or $10 billion, to the Medicaid program," Collins said.

In addition to helping needy families, the state aid package will provide Maine with millions of dollars that it can use to meet its current budget shortfall. This money will help the state balance the budget without having to resort to raising taxes. Tax increases at the state level would take away from the stimulative effect of the economic package.

In another victory for state fiscal relief, Senator Collins successfully negotiated an agreement that will prevent the dividend tax cut from being put into effect in a manner that will reduce income for the states. This agreement will save Maine approximately $30 million in revenue.

Senator Collins has been the leader on fiscal relief since early last year, when she forged a consensus on the bill with Sens. Nelson (D-NE), Rockefeller (D-WV), and Smith (R-OR).