Leaders Highlight Need for Additional Aid to States

At a recent Capitol news conference, a broad array of leaders made the case for additional federal aid. 

“While our economy is beginning to show signs of improvement, far too many Wisconsinites remain jobless. We still have a long way to go and the aid provided by the Stimulus Bill will end soon. This will leave states no choice but to continue cutting away at the services that provide a foundation for local economies,” said Sen. Jon Erpenbach, chair of the Senate Committee on Health, Health Policy, Privacy, Property Tax Relief, and Revenue. 

Ed Jayne, associate director of legislation for AFSCME International, said economists on the left and right agree that one of the best ways to keep the economy moving forward is to invest in public services. In a new report from the union, Mark Zandi of Moody's Economy.com, who advised Senator McCain's presidential campaign, estimates that every dollar invested in public services yields $1.41 in economic growth. 

But that investment is not possible with states facing a revenue lag that trails far behind signs of recovery. Most alarmingly, Wisconsin's Legislative Fiscal Bureau recently noted that the state's Medical Assistance program is in deep trouble that could force deep cuts in coverage like the state's Badgercare and SeniorCare programs. 

"This makes action pending in the U.S. Senate this week absolutely critical. Without it, Wisconsin citizens could lose vital coverage," said D'Anna Bowman, state director of AARP Wisconsin. 

Ken Taylor, executive director of the Wisconsin Council on Children and Families said failure to pass the Medicaid emergency extension would have a devastating impact on access to BadgerCare and other services that help low-income families. "We all know tough times mean sacrifices are necessary, but as a society we ought to take a balanced approach and ensure we are not harming the health and well being of children and youth," Taylor said. 

David Newby, president of the Wisconsin State AFL-CIO said failure to invest now in critical services that help families enter and stay in the workforce will cost much more in the future. Newby noted that the AFSCME report highlights some of those costs for Wisconsin, including $300 million in cuts to K-12 education, across-the-board cuts to state services of up to 6 percent, and approximately $600 million in Medicaid cuts. 

"The impact on Wisconsin is devastating, but this is a national problem and we need national leadership to understand that helping Wall Street is not enough. Main Street needs help and it needs help now," Newby said.