May 13, 2008
New Medicaid Regulations; State's Role in Protecting Homeowners; High Fuel Costs Affect States; NCSL Spring Forum Wrap-Up; State Budget Update and State Immigration Legislation
Capitol Ideas is a periodic listing of story ideas and background information from new NCSL research. For more information, contact NCSL's Press Team.
Medicaid Regulations Countdown
Seven new regulations proposed from the Centers for Medicare and Medicaid Services (CMS) would severely limit, or eliminate altogether, federal reimbursement that supports states for administering the Medicaid program. One of those rules would also change the way in which reimbursement for hospital services is calculated, which would further reduce the federal share of Medicaid costs for hospitals. In response to the rules, Maine, Maryland, New Jersey and Oklahoma filed lawsuits in federal court seeking an injunctive against the provisions of the rule. The states claim that implementing this rule would jeopardize the health and safety of Medicaid beneficiaries, limit state flexibility to provide case management effectively, and reduce federal funds to administer Medicaid to its most needy citizens.
To delay these rules, House Democrats included the provisions of H.R. 5613, the Protecting the Medicaid Safety Net Act of 2008, in the pending Iraq war supplemental bill. The Medicaid bill would delay implementing the seven controversial Medicaid rules until April 1, 2009. The Senate is scheduled to mark-up their version of the war supplemental later this week, but domestic spending provisions have not yet been disclosed.
States Address Mortgage Crisis, Rising Foreclosure Rates Locally
As Congress considers solutions to stem the subprime mortgage crisis and ways to stimulate the nation's economy, state efforts are under way to protect homeowners from abusive foreclosure practices. Just this year alone, state legislators in more than 30 states have or are considering legislation to curtail abusive foreclosure practices. Lawmakers are concerned about preserving communities in their districts and states and in protecting constituents who face difficult financial situations from being forced out of their homes without proper legal processes in place. In turn, state legislators want Congress to push forward the FHA Housing Stabilization and Homeownership Retention Act of 2008 that would maintain states' authority to regulate foreclosure practices.
High Fuels Costs Hit States' Pocketbooks, too
As gasoline prices rise across the country, states are taking actions that range from calling on Congress to investigate price gouging by oil companies to considering gasoline tax holidays. Although the federal gas tax has been the staple funding mechanism for transportation projects, state recognize that’s changing. Lawmakers are exploring other options for funding transportation such as establishing toll roads, raising registration fees and increasing sales taxes. Also, state transportation projects are being streamlined and downsized. Efficiency initiatives in some states can make projects more energy efficient.
States Boost Funding for Child Care and Early Child Education
States increased funding last year for child care and early education by more than $1 billion, according to the NCSL report "State Early Care and Education Budget Actions." This report is a compilation of data from a survey of fiscal staff in state legislatures in the 50 states and territories about state appropriations in FY 2007 and FY 2008. NCSL surveyed states about appropriations in four categories: child care; pre-kindergarten; parent education and home visiting; and related early learning programs.
Did you miss NCSL's Spring Forum?
During the last week of April, more than 600 state legislators and their staff attended NCSL's annual Spring Forum in Washington, D.C. Plenary sessions highlighted federal and state policy issues ranging from REAL ID to Health Information Technology to the 2008 Elections. More than 12 audio recordings of the sessions are available online, including: REAL ID: Final Rules...State Responses; Issues to Watch in the 2008 Elections; and Prisoner Health and Community Transitions.
Also Available: State Budget Update: April 2008 and State Immigration Legislation
With few exceptions, state finances are deteriorating--in some cases considerably. Many state lawmakers are confronting a two-fold problem: keeping their fiscal year (FY) 2008 budgets in the black and enacting balanced budgets for 2009. NCSL's State Budget Update: April 2008 is based on information collected from legislative fiscal directors and covers the revenue and expenditure situation for the first three quarters of FY 2008 for most states.
Also, in the first three months of this year, lawmakers introduced more than 1,100 bills related to immigrants and immigration in the 44 state legislatures. A new NCSL report found the majority of bills address law enforcement, employment, driver's licenses and other identification, for both legal and unauthorized immigrants. On par with last year, the number of immigration-related measures demonstrates states' willingness to respond to the public's concerns in a time when Congress won't.
NCSL is the bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.
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