Child Welfare League of America: Advocacy: State Fiscal Relief: Victory on State Fiscal Relief!

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Victory on State Fiscal Relief!

5/28/03

The tax bill, which will be signed by the President today, provides $20 billion for state fiscal relief. This provision was one of the more controversial sections of the tax bill. Clearly, it would not have been included without the support of CWLA members and others who called and sent letters to let Congress know that providing fiscal relief to states is essential in keeping much-needed programs and services available for children and families.

Of the total amount, $10 billion will be provided to states for a temporary increase in the FMAP (Federal Medical Assistance Percentage, or share of Medicaid paid by the federal government). These increased FMAP funds - can provide some relief to state budgets and thus minimize the need for cuts in Medicaid programs and other children's services. The federal government will make these funds available to states for the last two quarters of the current fiscal year and for the first three quarters of fiscal year 2004.

The remaining $10 billion can be used for temporary fiscal relief to states and local governments. These funds may be used for essential government services or financing unfunded federal mandates. See the State Fiscal Relief Funding Available Under Tax Bill Chart for information about how much your state will receive.

The governor in your state will soon be making decisions on how these temporary fiscal relief funds will be distributed. Now is the time to contact your governor and urge him/her to use these funds to address the serious shortfalls in child and family programs.

For more information, contact Barbara Allen, CWLA Senior Government Affairs Associate, at 202/639-4924 or ballen@cwla.org.

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