HR0823 96TH GENERAL ASSEMBLY

HR0823 LRB096 16633 KTG 31909 r

HOUSE RESOLUTION

WHEREAS, Congress enacted the American Recovery and Reinvestment Act of 2009 ("ARRA") which, among many things, authorized an estimated $87 billion in additional federal funding for states in the form of a temporary increase in the funds that the federal government contributes toward Medicaid and Title IV-E programs; and

WHEREAS, Section 5001 of the ARRA provided eligible states with an increase in funding to the Federal Medical Assistance Percentage (FMAP) formula for 27 months between October 1, 2008 and December 31, 2010, with the purpose of protecting people whose eligibility might otherwise be at risk if state budget shortfalls resulted in Medicaid cutbacks; and

WHEREAS, Illinois received an increase in the FMAP formula from 50.32% federal contribution to 60.48% in Fiscal Year 2009 and 61.88% in Fiscal Year 2010, resulting in $1.6 billion in cumulative increased FMAP funding in Fiscal Years 2009 and 2010; and

WHEREAS, The increased FMAP formula has allowed Illinois to utilize funds to comply with prompt pay requirements in an effort to pay most Medicaid providers at 30 days rather than the 90 days the State was approaching; and

WHEREAS, Although the current economic climate has caused Illinois to face severe unprecedented budget shortfalls, the increase in the FMAP funding has prevented even more drastic cuts that would have been implemented had this increase in funding not been available; and

WHEREAS, Illinois legislators will approach the Fiscal Year 2011 budget with as much caution as the Fiscal Year 2010 budget; and it is estimated that lagging revenues and continued spending pressures will result in an even larger deficit; and that without an infusion of cash from borrowing or another source, the State's fiscal health will continue to decline; and

WHEREAS, On December 15, 2009, the National Caucus of State Legislatures sent letters to the leadership of both chambers of Congress to extend the enhanced FMAP formula for at least an additional six months to June 30, 2011, in order to maintain the assistance to states as growing numbers of Americans who have become Medicaid-eligible as a result of the economic downturn continue to rise; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we respectfully urge Congress and all members of the Illinois Congressional Delegation to support an extension of the increased Federal Medical Assistance Percentage funding, made available by the American Recovery and Reinvestment Act of 2009, beyond December 31, 2010; and be it further

RESOLVED, That after adoption, suitable copies of this resolution shall be sent by the Clerk of the Illinois House of Representatives, to the members of the Illinois Congressional Delegation, the President pro tempore and Minority Leader of the United States Senate, and the Speaker and Minority Leader of the United States House of Representatives.