The National Governors Association has urged the leaders in the deficit reduction talks to avoid cost-shifting to states or imposing unfunded mandates.
After acknowledging federal efforts to close the deficit gap and address the debt ceiling, the NGA pressed principals in those talks to adhere to four principles in establishing state-federal deficit reductions:
• Federal reforms should be designed to produce savings for both the federal government and states.
• Deficit reduction should not be accomplished by cost-shifting to states or imposing unfunded mandates.
• State should be given more flexibility to increase efficiency and achieve results.
• Congress should not impost maintenance of effort provisions on states as a condition of funding.
The letter, which was addressed to President Obama, Vice President Joe Biden, among other key leaders in the debt reduction negotiations, cited Medicaid as an area of serious concern. The NGA cited target projections for 10-year total Medicaid reduction to be close to $100 billion.
"These proposed federal spending reductions for Medicaid will result in a direct cost shift to states, which will result in reduced Medicaid expenditures, in increased state taxes or reductions in K-12 education, transportation and public safety funding," the letter states.
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After acknowledging federal efforts to close the deficit gap and address the debt ceiling, the NGA pressed principals in those talks to adhere to four principles in establishing state-federal deficit reductions:
• Federal reforms should be designed to produce savings for both the federal government and states.
• Deficit reduction should not be accomplished by cost-shifting to states or imposing unfunded mandates.
• State should be given more flexibility to increase efficiency and achieve results.
• Congress should not impost maintenance of effort provisions on states as a condition of funding.
The letter, which was addressed to President Obama, Vice President Joe Biden, among other key leaders in the debt reduction negotiations, cited Medicaid as an area of serious concern. The NGA cited target projections for 10-year total Medicaid reduction to be close to $100 billion.
"These proposed federal spending reductions for Medicaid will result in a direct cost shift to states, which will result in reduced Medicaid expenditures, in increased state taxes or reductions in K-12 education, transportation and public safety funding," the letter states.
Related Articles on Debt-Reduction Negotiations:
Deficit Negotiations Between Obama, House Speaker Boehner May Include Medicare and Medicaid Cuts, Tax Overhaul
Leading Democrats Say No to Sens. Lieberman, Coburn's Proposed Medicare Plan
House Defeats Debt Limit Increase, Signaling Medicare Cuts May be on the Way