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Public Consulting Group Research

Efforts to extend the Federal Medical Assistance Percentage (FMAP) beyond the December 31, 2010 expiration appears to have lost momentum in the Senate and some believe it will die.  As most state budgets began on July 1, some 30 states will have to re-evaluate the assumptions made in establishing the 2010-2011 fiscal year financial plan.  Without the influx of additional revenue, states are anticipating another round of cuts in staff, services and benefits, further risking the safety, well-being and protection of every state's most vulnerable citizens.  The 4th of July recess will further dash the hopes for any kind of reprieve from the Senate to examine this stop gap measure for state budgets in FY 2011.  The National Governor's Association sent a letter to Congress urging passage of the FMAP extension on June 30th as the Governors know very well what is ahead.  The estimates for budget shortfalls in a few states include:  Maine - $85 million, Virginia - $165 million, Colorado - $211 million, Florida - $230 million and Michigan - $560 million. 

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