RICHMOND, Va. – Virginia Governor Bob McDonnell said in his State of the Commonwealth Address this week that he will not support the Medicaid expansion in Virginia, which is part of the federal health care reform law.
The governor’s new budget reflects this decision.
Jill Hanken, an attorney with the Virginia Poverty Law Center, says the governor has stripped $1.1 billion from the budget – an amount she says is approaching what would come from the federal government to pay for Virginia's Medicaid expansion beginning January 2014.
"The federal government pays the entire cost of the expansion for the first three years, and this is bringing $2 billion a year into Virginia – which would be used not just for health services for low-income people, but it would support hospitals, businesses and overall economic activity."
According to a recent study by Chmura (Cha-MOORE-uh) Economics and Analytics in Richmond, the Medicaid expansion in Virginia would produce about 30,000 jobs, mostly in the medical field. After 2019, the state would be required to cover 10 percent of the costs for the expansion.
Hanken says the state's share is dwarfed by the amount of federal dollars that will be rolling into the state.
According to the Virginia Senate Finance Committee, the state spent more than $1 billion over the course of a 10-year period to subsidize indigent care at the University of Virginia and Commonwealth University Health Care Systems.
Hanken says federal funds for the expansion of Medicaid would offset these state costs.
"Also when hospitals do provide indigent care services, it affects all of us, our own health care insurance premiums go up by about a thousand dollars a year."
Hanken adds that Virginia has one of the most restrictive Medicaid programs in the entire country, but the expansion would alter this and about 400,000 Virginians could qualify for Medicaid health insurance.
The Virginia General Assembly will decide during its 2013 session whether to adopt the Medicaid expansion.
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Minnesota is little less than a year away from launching its paid-leave law, but state lawmakers are debating whether to delay the start until 2027.
Paid leave was considered one of the crowning achievements of the 2023 legislative session, when Democrats controlled both chambers. But the GOP now has a slight edge in the House, so the policy is getting a second look.
Employers will be required to provide up to 20 weeks of paid time off each year to a worker dealing with a health issue, or caring for a loved one. During committee debate Thursday, Minnesota AFL-CIO president Bernie Burnham argued against pushing things back.
"Working Minnesotans are ready for the peace of mind that comes from knowing we will have the freedom to care for ourselves, and the people we love, without sacrificing a paycheck," he said.
Supporters of the later start date have said there's still uncertainty about the impact on businesses, especially smaller companies, as they prepare to comply. Others testified there aren't enough safeguards in place yet for the state to smoothly roll out the program. But Burnham said the effort has been vetted, and any kinks can be sorted out after the currently scheduled launch of January 2026.
Some voices in the education field testified in support of the bill calling for a one-year delay. Kim Lewis, associate director of government relations for the Minnesota School Boards Association, said the timing isn't good for school districts around the state.
"A significant number of the 331 districts are currently making staffing cuts to balance budgets," she said. "No one wants to do that, but the increased costs and the increased needs are a reality. Our biggest issue and question is, how do we pay for the paid leave benefit?"
But the Minnesota Association of Professional Employees, which represents more than 18-thousand state workers, has said not only would this halt a critical benefit they've fought for over the past decade, but also result in additional administrative costs for the state.
Minnesota set aside funds to help cover the program's launch. After that, benefits would be funded by payroll taxes shared by employers and workers.
Disclosure: Minnesota AFL-CIO and Minnesota Association of Professional Employees contribute to our fund for reporting on Budget Policy & Priorities, Civil Rights, Livable Wages/Working Families, Social Justice. If you would like to help support news in the public interest,
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A lawsuit has been filed against the Trump administration over its budget-cutting plans targeting medical research led by colleges and universities.
Their allies warn of negative consequences for curing diseases, as well as local economies. The suit was brought by Minnesota and 21 other states after the National Institutes of Health said it would follow through on orders to cut $4 billion through a grant funding formula for indirect expenses.
North Dakota is not part of the legal case, but an analysis said the state could lose more than $3 million in research funds.
Ellie Dehoney, senior vice president of policy and advocacy for the group Research!America, said no matter the state, the pain will be quickly felt.
"The suddenness of it is one of the ways that you degrade your research capacity," Dehoney pointed out.
Beyond the effects on finding cures for diseases such as Alzheimer's, Dehoney warned of job losses at lab equipment makers and other supporting businesses. Trump advisers suggest too much grant money goes to overhead costs but advocates countered the argument misrepresents the facts. They said even indirect funds keep the lights on at university labs and support other key infrastructure such as data storage. A federal judge on Monday temporarily halted the cuts as the case proceeds.
Dehoney said medical research at the academic level needs to play out first because the private sector does not have the resources or patience to play the long game in advancing treatments. She also warned slowing scientific progress could keep more people dealing with chronic health issues from improving their quality of life and participating in the workforce.
"I know a person who is on Social Security disability," Dehoney observed. "She went on a biologic (drug), she has rheumatoid arthritis, and now she's working full-time."
Dehoney argued abruptly stalling important research work also benefits global competitors such as China. She feels there is room for groups like hers to work with the Trump administration on finding efficiencies but only if they actually boost research capacity, not reduce it.
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Gov. Josh Shapiro's proposed state budget includes a significant increase for public education to address Pennsylvania's school funding issues and educator shortage.
The proposed budget would boost funding for basic and special education and the state's student-teacher stipend program.
Aaron Chapin, president of the Pennsylvania State Education Association, is praising the commitment to education, and sees the $1 billion proposal as a vital investment in public schools.
"More than $600 million of that is going right to our public schools when it comes to providing adequacy, as well as tax equity payments to qualifying school districts for the Ready to Learn Grant," Chapin outlined.
Chapin noted an additional $75 million will be distributed to all school districts through the basic education funding formula, which he called "a big step forward." The state House and Senate will need to vote on the budget by June.
The proposed budget includes a $20 million boost for the Student Teacher Support Program, which provides a $10,000 stipend to eligible aspiring educators.
Kaylin Shewmake, a senior at Penn State University, second grade student teacher and Central Region president of Student Pennsylvania State Education Association, said the stipend has helped with her tuition, rent, groceries and other living expenses.
"It honestly was a huge relief when I saw I'd gotten the stipend," Shewmake recounted. "Because if not, I would have had to work a part-time job on top of student teaching, which would have been really difficult for me, because I am really involved outside of student teaching with my extracurriculars. With this extra money, I didn't have to take out any loans."
Chapin noted it is the first year the stipend is available and with the governor recommending doubling the funding, $40 million would support student teachers with these stipends.
"Gov. Shapiro, with legislators, designated $20 million this year -- didn't pay for everybody, it only paid for just over 2,000," Chapin pointed out. "Another $20 million is going to cover another 2,000. We're getting very close to making sure that every Pennsylvania college student that is student teaching will receive a stipend."
The proposed budget would also deliver $111 million for student mental health and school safety grants.
Disclosure: The Pennsylvania State Education Association contributes to our fund for reporting on Budget Policy and Priorities, Early Childhood Education, Education, and Livable Wages/Working Families. If you would like to help support news in the public interest,
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