What Happens to PA Budget without FMAP Money

Gov. Rendell is supposed to meet with lawmakers today to discuss options if Congress doesn’t approve the $850 million in federal FMAP funds.

Pete DeCoursey (subscription) breaks down the effect on welfare spending, which I try to summarize in fewer words, using a chart breaks down the spending.

Since 2008-09	With FMAP Funding	Without
PA Welfare Spending Increase	$2,400	$2,400
State Sources	-$750	$100
Federal Sources	$3,150	$2,300
(in millions)

The bottom line is, even if Pennsylvania does not get the federal Medicaid money, the cuts have to come from elsewhere. The state can’t change eligibility and continue to receive stimulus funds, because of the “maintenance of effort” requirement.