SENATOR SUSAN COLLINS INTRODUCES BILL TO AID STATES STRUGGLING TO MEET MEDICAID AND SOCIAL SERVICE NEEDS

WASHINGTON, D.C. – Senator Susan Collins today introduced bipartisan legislation that would assist states through a period when many are experiencing a severe fiscal crisis due to the effects of the downturn in the economy, decreasing state revenues, and the residual economic effects of September 11th. The bill would increase the federal government's share of each state's Medicaid costs and provide block grants for social services.

Senator Collins's bill would provide $10 billion in designated Medicaid relief and $10 billion in social services block grants over 18 months. The bill would result in $128 million over 18 months for Maine.

"Medicaid is the fastest growing component of state budgets," said Senator Collins. "While state revenues were stagnant or declined in many states last year, Medicaid costs increased. And the situation with state budgets has deteriorated greatly in the few short months since the Senate passed the legislation we introduced last July. Maine's budget deficit has grown to a projected $2 billion dollars over the next two years."

Similar legislation was introduced by Senator Collins last year and, in July, and it passed the Senate with 75 votes. "The level of support was high then," said Senator Collins. "With state budget deficits having grown deeper, we anticipate an equal if not greater level of support now."

Senator Collins introduced her legislation with Senators Jay Rockefeller (D-WV), Ben Nelson (D-DE), and Gordon Smith (R-OR).

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