July 26th, 2010

From The Daily Item:

SUNBURY — When Congress stripped enhanced federal funding for public health and human services from the Unemployment Compensation Extension 2010 bill, which was signed into law Friday, it denied Pennsylvania $850 million, which Gov. Ed Rendell was relying on to balance his 2010-2011 budget.

The funding, called FMAP, refers to the federal percentage of matching funds for state Medicaid expenditures.

With Congress failing to approve the FMAP funding extension — due to expire in December — Rendell and legislative leaders will have to find another way to balance the budget. This will likely require funding cuts for critical human services such as medical assistance, child protective services, mental health/mental retardation services and domestic violence counseling.

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