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State leaders “undermining” efforts to bring extra Medicaid bucks home to Florida, Castor says

Posted Mar 17, 2010 by Catherine Whittenburg, Tallahassee bureau

Updated Mar 17, 2010 at 02:21 PM

Legislative leaders are “undermining” the state’s Congressional delegation’s efforts to bring extra federal Medicaid dollars back to Florida, by talking about using the money for other purposes, U.S. Rep. Kathy Castor said Tuesday.

Florida stands to receive more than $1 billion from the feds for Medicaid if Congress approves it. Castor, D-Tampa, has joined state Senate health care budget chief Durell Peaden and Democrats on his committee in urging state Senate leaders to spend all of that federal aid on health care — not to plug other budget holes. The state Senate has so far budgeted about $1 billion less than the House for health care (more about that here).

Technically, that federal aid would have to be used in support of the state’s expanding Medicaid program. But that wouldn’t stop lawmakers from using those dollars to supplant state money that would otherwise be spent on the health care budget, and spending those funds on other priorities instead.

That’s what the Legislature did in spring 2009, spending the equivalent of nearly half of the $1.6 billion that Florida received for Medicaid in other areas, primarily education. Senate President Jeff Atwater and Senate budget chief JD Alexander have signaled they may take similar steps again.

Unlike GOP lawmakers—who won’t budget the anticipated money until Congress guarantees it—Gov. Charlie Crist has already included the hoped-for extra federal money in his budget proposal for the coming fiscal year. Crist’s plan covers growth in the Medicaid program with that federal aid, but also uses it to shift state money to other priorities, budget director Jerry McDaniel said.

Castor urged lawmakers not to swap the money around this time. “It’s not easy to fight and scrape for each dollar at the federal level for Florida families and children,” she said. “There are so many competing needs. When state lawmakers begin to say they’re not going to use the federal resources as intended, it undermines my efforts—all of our efforts—at the federal level to bring more resources for health care in Florida.”

That said, the measure is expected at this point to reach President Barack Obama’s desk, since it has now passed both the U.S. House and Senate. The two chambers must now reconcile the differences in their bills and send a final version to Obama. Castor said the House will likely take up the issue next week.