Issue Brief 09-45 President Signs Ryan White Reauthorization November 19, 2009
Summary As part of the Ryan White HIV/AIDS Treatment Modernization Act of 2006 (P.L. 109-415), Congress included a sunset provision to repeal the program if no legislative action was taken by September 30, 2009. Since Congress was unable to act on reauthorization by that date, it included a one-month extension of the program in a continuing resolution (P.L. 111-68). In the meantime, Congress passed a bill that makes minor changes to the Ryan White HIV/AIDS program and reauthorizes it through fiscal year (FY) 2013. The president signed the bill (P.L. 111-87) on October 30, 2009.
Issue Brief 09-44 House Health Care Reform Bill Includes ARRA FMAP Extension November 6, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) contains provisions that increase Medicaid and Title IV-E foster care and adoption assistance grants to states for 27 months by increasing their federal medical assistance percentages (FMAPs), the share of state programs paid by the federal government (see Issue Brief 09-39 for more information). The FMAP increases are set to expire on December 31, 2010. However, these provisions would be extended for two quarters—until June 30, 2011—under the House health care reform bill, the Affordable Health Care for America Act (H.R. 3962). FFIS estimates that this extension would provide states with an additional $20.5 billion in federal Medicaid funds and $190.7 million in federal Title IV-E funds.
Issue Brief 09-43 ED Increases Caps on State Administration November 6, 2009
Summary The Department of Education (ED) recognizes that states will assume increased administrative responsibilities under the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). However, both Title I- Education for the Disadvantaged and Special Education have caps on the amount of funds that can be used for administrative costs. Since these limits do not take into account the new ARRA requirements, ED proposed an increase in the caps for Title I-Part A (grants to local educational agencies [LEAs]) and Special Education-Part B (grants to states) to allow states to use additional existing funds to administer, monitor, and report on the use of ARRA funds. The proposed notice was published in the Federal Register on August 17, 2009 (see Issue Brief 09-30 for information on the proposed notice and background regarding the existing caps and ARRA requirements). The final notice of adjustments, published in the Federal Register on October 27, 2009, clarifies that states may use regular FY 2009 appropriations and/or ARRA allocations for Title I-Part A and Special Education-Part B to meet the new administrative funding cap levels.
Issue Brief 09-42 Distracted Driver Bill Would Impose Funding Sanctions on States November 3, 2009
Summary The Avoiding Life-Endangering and Reckless Texting by Drivers Act of 2009 (Alert Drivers Act) has been introduced in both the House and Senate. The bills (S. 1536 and H.R. 3535) would reduce federal highway funding available to states that do not enact a law prohibiting an individual from sending or receiving text messages while operating a motor vehicle. If this legislation is enacted and states fail to comply, they could lose up to $4.4 billion annually in funding from three major federal-aid highway programs.
Summary The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA; P.L. 111-3) provided additional funding for the Children’s Health Insurance Program (CHIP) and revised state allotments to more accurately reflect state spending (see Issue Brief 09-25 for more information on CHIPRA). On September 16, 2009, the Centers for Medicare and Medicaid Services (CMS) published a proposed rule in the Federal Register that addresses methodologies and procedures for determining the CHIP allotments for federal fiscal years (FYs) 2009-2013. In addition, the notice provides additional details on the FY 2009 allotments as well as FYs 2008-2009 shortfall allotments. Comments on the notice are due on November 16, 2009.
Issue Brief 09-40 Medicare Premium Increase Raises State Medicaid Costs October 30, 2009
Summary On October 22, 2009, the Department of Health and Human Services (HHS) published in the Federal Register the Medicare Part B premium rate for calendar year 2010. The standard monthly Part B premium will increase by 15%, from $96.40 to $110.50. This rate increase is unusually high because most Medicare beneficiaries are exempt from the rate adjustment due to a hold-harmless provision related to the cost-of-living adjustment (COLA) for social security payments. However, those individuals who qualify for both Medicare and Medicaid (the dual eligibles) are not exempt from the rate increase because Medicaid pays their Part B premiums. As a result, states could see an estimated $370 million increase in their Medicaid costs in 2010.
Issue Brief 09-39 Preliminary FY 2010 First Quarter ARRA FMAPs October 26, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) contains provisions that increase Medicaid grants to states for 27 months by increasing their federal medical assistance percentages (FMAPs), the share of state programs paid by the federal government. The bonus increases can change each quarter based on state unemployment rates. The preliminary quarterly unemployment bonuses are calculated when preliminary unemployment data for the month prior to the start of the quarter is released by the Bureau of Labor Statistics (BLS). Those quarterly FMAPs are recalculated once final unemployment data are available.
On October 21, 2009, BLS published preliminary state unemployment data for September 2009. Publication of this data permits the calculation of the preliminary first quarter ARRA FMAPs for federal fiscal year (FY) 2010. Nine states are projected to move to a higher bonus tier, and several other states receive increases due to higher FMAP base rates in FY 2010.
Issue Brief 09-38 Final FY 2011 FMAPs October 21, 2009
Summary On October 16, 2009, the Bureau of Economic Analysis (BEA) released state personal income data for 2008 and revised data for prior years. These data were initially scheduled to be released on September 18, 2009, but were delayed due to discrepancies found in the data. This release permits the calculation of final federal fiscal year (FY) 2011 federal Medicaid matching rates (Federal Medical Assistance Percentages—FMAPs). Based on the new data, 17 states will receive increased FMAPs in FY 2011 and 22 will see decreases. These changes do not apply to the first quarter of FY 2011 because the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) holds states harmless from any FMAP reduction from October 1, 2008 through December 31, 2010.
Issue Brief 09-37 House Student Loan Bill Would Alter Current Landscape October 8, 2009
Summary On September 17, 2009, the House passed the Student Loan and Fiscal Responsibility Act (H.R. 3221), a measure that would generate an estimated $80 billion in savings over 10 years by eliminating the Family Federal Education Loan (FFEL) program and originating all new student loans through the Department of Education’s Direct Loan program. This is a major change in the student loan process since private lenders would no longer serve as originators of FFELs. Money saved from the major overhaul of the student loan program would be used to fund a number of mandatory education initiatives endorsed by the Obama administration. These include providing a large financial boost to early childhood education programs and school modernization. Another portion of the projected savings would be used to pay for a major community college proposal aimed at improving school facilities and retooling education programs. Table 1 lists the new programs proposed under this legislation.
Summary On September 22, 2009, the House passed the Unemployment Compensation Extension Act of 2009 (H.R. 3548). The bill would extend emergency unemployment compensation by an additional 13 weeks for laid-off workers in states with high unemployment. This extension, which is funded entirely by the federal government, would bring the total eligibility for unemployment insurance (UI) benefits to 72 weeks in states with high unemployment. Workers in states that do not have high unemployment are currently eligible for up to 46 weeks of benefits. The bill would also increase the standard used to define high unemployment to 8.5% three-month average unemployment.
Summary The Federal Highway Administration (FHWA) published a notice (N 4510.711) informing states that $8.7 billion of unobligated federal-aid highway funds will be rescinded on September 30, 2009. Unlike previous years, this rescission could have a direct impact on the ability of states to fund construction and maintenance projects. Each state will lose funds based on its relative proportion of total highway funds apportioned to all states over the six-year life of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU; P.L. 111-8). Congress included the annual rescissions in SAFETEA-LU to make the bill’s cost fit within federal budgeting parameters. At the time, the intent was to find other budget offsets to prevent the rescissions from actually being implemented. However, Congress has yet to take the necessary action. From fiscal years (FYs) 2006-2009, more than $16 billion has been rescinded from the highway programs.
Issue Brief 09-34 Proposed Notice on School Improvement Grant Requirements Published September 14, 2009
Summary On August 26, 2009, the Department of Education (ED) published a notice in the Federal Register that describes the proposed requirements of federal fiscal year (FY) 2009 School Improvements Grants (CFDA #84.377) funded under the American Recovery and Reinvestment Act (ARRA; P.L. 111-5) and FY 2009 appropriations legislation. The grants support efforts to carry out program- improvement responsibilities to turn around the lowest-achieving schools. ED notes that while progress has been made in reforming schools, many of the lowest performers have not changed course, either because they have received insufficient support or because interventions to date have not been effective. ED’s strategy is to identify and serve the lowest-achieving schools in each state, support rigorous interventions to produce rapid improvements in student achievement, provide the resources necessary over several years to implement those interventions, and measure the progress schools have made in achieving results.
Issue Brief 09-33 DHS Releases FY 2009 Homeland Security Grant Allocations September 8, 2009
Summary The Department of Homeland Security (DHS) released federal fiscal year (FY) 2009 grant allocations for the Homeland Security Grant Program (HSGP). HSGP includes four grant programs: the State Homeland Security Grant Program (SHSP), Citizen Corps, Metropolitan Medical Response System (MMRS), and the Urban Areas Security Initiative (UASI).
Overall funding for HSGP was $1.8 billion in FY 2009, roughly the same as in FY 2008. The funding awarded to SHSP decreased slightly in FY 2009, while UASI received $17 million more in FY 2009. The two remaining programs received level funding.
Table 1 shows allocations for the SHSP grant program for FYs 2008 and 2009, the percent change between those years, and FY 2009 per capita spending based on 2008 population estimates. Table 2 lists state by state funding allotments for Citizen Corps from FY 2006 through FY 2009. Tables 3 and 4 show the distribution of funds for the two programs awarded to local governments (UASI and MMRS). Table 5 lists and ranks per capita funding for all four programs combined under HSGP in FY 2009.
Issue Brief 09-32 Final Fourth Quarter ARRA Bonus FMAPs August 28, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) contains provisions that increase Medicaid grants to states for 27 months by increasing their federal medical assistance percentages (FMAPs), the share of state programs paid by the federal government. The bonus increases can change each quarter based on state unemployment rates. The preliminary quarterly unemployment bonuses are calculated when preliminary unemployment data for the month prior to the start of the quarter is released by the Bureau of Labor Statistics (BLS). Those quarterly FMAPs are recalculated once final unemployment data are available.
On August 21, 2009, BLS published final state unemployment data for June 2009. These data were revised on August 25, 2009, to reflect corrected data for Connecticut due to a minor input error. Because of the additivity in the BLS estimating process, this input error also affected the five other New England states. Publication of the final June 2009 data permits the calculation of the final fourth quarter ARRA FMAPs for federal fiscal year (FY) 2009. Although the updated June data were used in the calculation, the final FMAPs remain the same as the preliminary ones that FFIS calculated in Issue Brief 09-28.
Issue Brief 09-31 Will REAL ID Give Way to PASS ID? August 18, 2009
Summary The Providing for Additional Security in States Identification Act of 2009 (S. 1261) or “PASS ID” has passed the Senate Homeland Security and Governmental Affairs Committee. This legislation, if enacted, would amend the REAL ID Act of 2005 (P.L. 109-13), which has drawn criticism from states due to its implementation costs, inflexible requirements, inadequate privacy protections, and lack of federal guidance to states in key areas.
The originally proposed PASS ID bill eliminated the requirements for verification of birth records, as well as the costly creation of a comprehensive national electronic database. However, an amendment adopted to PASS ID would now require states to digitize and verify birth records six years after the issuance of final regulations, and establish an electronic system to check the birth record information from other states. The amendment further specifies that this clause can be implemented only once the secretary of the Department of Homeland Security (DHS) has determined that all states have completed birth record digitization and that the electronic system used to verify information is reliable and adequately deployed, and that privacy and security measures are in place.
PASS ID also would create two new grant programs that would replace the current grant program under REAL ID.
Issue Brief 09-30 Education Proposal Would Increase Caps on State Administration August 18, 2009
Summary The Department of Education (ED) recognizes that states will assume increased administrative responsibilities under the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). However, both Title I-Education for the Disadvantaged and Special Education have caps on the amount of funds that can be used for administrative costs. Since these limits do not take into account the new ARRA data collection requirements, ED is proposing an increase in the caps for Title I-Part A (grants to local educational agencies [LEAs]) and Special Education-Part B (grants to states). The proposal, published in the Federal Register on August 17, 2009, would allow states to use additional existing funds to administer, monitor, and report on the use of ARRA funds. Public comments to the notice are due on September 16, 2009.
Issue Brief 09-29 HHS Releases FY 2010 Allotments for Social Services Block Grant August 14, 2009
Summary The Department of Health and Human Services (HHS) recently released estimated fiscal year (FY) 2010 allotments for the Social Services Block Grant (SSBG). These allotments are identical to FY 2009 levels because they rely on 2007 population data, rather than the 2008 population data released on December 22, 2008.
Issue Brief 09-28 New Methodology Increases ARRA FMAPs for Some States August 13, 2009
Summary On August 4, 2009, the U.S. Department of Health and Human Services (HHS) published in the Federal Register a notice with comment period regarding changes to the methodology for calculating the increase in federal medical assistance percentages (FMAPs) under the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). Specifically, the notice changes the data months used in calculating the quarterly unemployment bonuses and requires quarterly FMAPs to be recalculated once final unemployment data is available. The notice also provides the final third quarter ARRA FMAPs for fiscal year (FY) 2009, which were determined based on the revised methodology. This change increases the third quarter FMAPs for 16 states.
Issue Brief 09-27 Proposed Guidance on Race to the Top Funds Published August 12, 2009
Summary On July 29, 2009, the Department of Education (ED) published a proposed notice in the Federal Register that specifies the federal requirements, definitions, and selection criteria for the Race to the Top Fund (CFDA # 84.395), a new grant program authorized and funded under the American Recovery and Reinvestment Act (ARRA, P.L. 111-5). (The fund is referred to in the statute as the State Incentive Grant Fund.) The Race to the Top Fund provides $4.3 billion in competitive grants to encourage and reward states that are implementing significant education reforms.
Issue Brief 09-26 Does OMB’s Assessment Rating Tool Affect Funding? August 6, 2009
Summary Since 2004, a host of federal programs have been assessed for their effectiveness through the Program Assessment Rating Tool (PART) developed by the Office of Management and Budget (OMB). If programs are determined to be ineffective or redundant, it is often recommended that Congress move towards their elimination. Whether that happens may have more to do with congressional prerogatives than performance outcomes.
Issue Brief 09-25 Recent Developments Reflect Impact of CHIP Reauthorization July 16, 2009
Summary The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA, P.L. 111-3) extends and expands the Children’s Health Insurance Program (CHIP, formerly SCHIP). CHIPRA more than doubles the amount of new funding available to states, provides states with new options for coverage, and implements other changes designed to increase enrollment.
Since reauthorization in February 2009, the U.S. Department of Health and Human Services (HHS) has released fiscal year (FY) 2009 allotments, announced a funding opportunity to expand outreach, and provided guidance on the new law. These recent developments reflect the impact of reauthorization on states and their CHIP programs.
Issue Brief 09-24 Detailed ARRA Reporting Guidance Released July 9, 2009
Summary Recipients of federal financial assistance appropriated through the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5) are required to report on those funds within 10 days of the end of each calendar quarter, with the first reporting deadline set for October 10, 2009. Reporting on both primary awards and subawards is required. Many details regarding reporting requirements have been unclear since the passage of ARRA, but on June 22, 2009, the Office of Management and Budget (OMB) released a memorandum (M-09-21) that contained detailed guidance on the reporting requirements set forth in section 1512 of ARRA.
There is no requirement for ARRA section 1512 reporting on July 10, 2009, as previously indicated in the OMB memorandum dated April 3, 2009.
Issue Brief 09-23 Medicaid Expansion Prominent in Health Care Reform Proposals July 9, 2009
Summary As part of comprehensive health care reform efforts, both the House and Senate are considering changes to the Medicaid program, most notably a mandatory expansion of Medicaid eligibility. Under the House proposal, the Medicaid program would be expanded to cover individuals with incomes at or below 133% of the federal poverty level (FPL). The federal government would pay 100% of the cost of such an expansion. The Senate’s Committee on Finance most recent proposal has not been formally released. However, according to committee staff, the proposal likely will contain a mandatory expansion to 133% FPL for all children and pregnant women and 100% FPL for parents and childless adults. The mandatory increase for parents and childless adults would be phased in over three years, and the federal government would provide a temporary increase in federal funding for the newly covered populations.
This Issue Brief provides an overview of the House and Senate health reform proposals, focusing on changes to the Medicaid program, and estimates the state impact of a mandatory eligibility expansion. The proposals are in draft form and changes are anticipated as health care reform moves through the legislative process.
Issue Brief 09-22 Fourth Quarter Estimates of ARRA Bonus FMAPs June 23, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) contains provisions that increase Medicaid grants to states for 27 months by increasing their federal medical assistance percentages (FMAPs), the share of state programs paid by the federal government. The bonus increases can change each calendar quarter based on state unemployment rates. FFIS estimated the new FMAPs for the first three quarters of federal fiscal year (FY) 2009 and their impacts (see Issue Brief 09-05 and Issue Brief 09-14). This brief estimates FMAPs for the fourth quarter based on new data and uses those rates to re-estimate the overall impact on states through December 2010. The overall increase in Medicaid grants to states is now estimated to equal $84.9 billion.
Issue Brief 09-21 HHS Announces FY 2009 Ryan White Awards; Program Sunset Approaching June 2, 2009
Summary The Ryan White HIV/AIDS Treatment Modernization Act of 2006 (P.L. 109-415) provides medical treatment and support services for individuals with HIV that do not have sufficient health care coverage or financial resources. The U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) recently announced fiscal year (FY) 2009 awards totaling $1.8 billion for Parts A, B, and C. The Part A awards contain additional funding for certain urban areas as a result of the stop-loss provision contained in the FY 2009 Omnibus Appropriations Bill (P.L. 111-08).
In addition, the Ryan White program is scheduled to sunset on September 30, 2009. Prior to that date, Congress must extend or reauthorize the program.
Issue Brief 09-20 ARRA Provides New, Expanded Bonding Authority May 5, 2009
Summary In addition to providing substantial funding for a host of state grant programs, the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5) also provides new and expanded bonding authority for state and local governments. These include:
· Build America Bonds · Recovery Zone Economic Development Bonds · Qualified Zone Academy Bonds · Qualified School Construction Bonds · Qualified Energy Conservation Bonds · New Clean Renewable Energy Bonds
This Issue Brief describes the programs and provides allocations and bond caps, where available.
Issue Brief 09-19 TANF Emergency Fund Details Released April 23, 2009
Summary Under the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5), Congress appropriated $5 billion for a new Temporary Assistance for Needy Families (TANF) emergency contingency fund (emergency fund). Total emergency funding for states is capped at this level for fiscal years (FYs) 2009 and 2010 combined. The new TANF emergency fund is in addition to the existing TANF contingency fund.
On April 3, 2009, the Department of Health and Human Services (HHS) released guidance on the emergency fund, including maximum grant allocations. The guidance and maximum allocations can be found at: http://www.acf.hhs.gov/programs/ofa/policy/pa-ofa/2009/pa200901.htm.
Emergency funds are now available for qualifying states.
Issue Brief 09-18 ARRA Restores Federal Match for Child Support Incentive Payments April 15, 2009
Summary On March 26, 2009, the Department of Health and Human Services (HHS) announced the availability of an estimated $1 billion in funding under the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5) for state child support enforcement (CSE) programs. The funding is a result of an ARRA provision that temporarily suspends section 7309 of the Deficit Reduction Act of 2006 (DRA) for fiscal years (FYs) 2009 and 2010. The new law requires the federal government to resume matching expenditures of federal child support incentive payments for those two years. The DRA provision had reduced federal child support funding to states by approximately 20% by eliminating the federal match on incentive payments. States should find the policy change a relief, as the elimination of the federal match, coupled with the current economic downturn, has required many states to either implement program cuts within their CSE programs or increase state general fund spending to maintain program operations.
Issue Brief 09-17 Department of Education Releases Guidance on Fiscal Stabilization Fund April 14, 2009
Summary On April 1, 2009, the Department of Education issued guidance on the State Fiscal Stabilization Fund (SFSF), authorized by the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). This guidance outlines the process for awarding funds to governors and provides detailed information on the program requirements.
Issue Brief 09-16 Putting Subaward Transparency Requirements to Test in ARRA April 9, 2009
Summary Under the Federal Funding Accountability and Transparency Act (FFATA) (P.L. 109-282), federal financial assistance to non-federal entities is to be tracked through the reporting of various data elements by fund recipients. While reporting requirements for primary financial assistance awards were implemented in 2008, specific requirements for the reporting of subawards remained unclear.
With passage of the American Recovery and Reinvestment Act (ARRA) (P.L 111-5), however, two basic requirements for subaward reporting have emerged: subrecipients must obtain a Data Universal Numbering System (DUNS) number and maintain current registration in the Central Contractor Registration (CCR) database. These and any additional future requirements for subaward reporting under ARRA apply to first-tier subrecipients only.
ARRA also instructs subaward reporting to comply with FFATA requirements on subawards. Given the lack of clarity surrounding specific data elements for suabaward reporting under the FFATA, federal agencies have differed in their approaches to subaward requirements under ARRA, to date. Recently proposed requirements for subaward reporting from the Office of Management and Budget (OMB) include additional data elements that should provide clarity on this issue.
Issue Brief 09-15 Medicare Part D Parameters; Preliminary 2010 Clawback Calculations April 8, 2009
Summary The Centers for Medicare and Medicaid Services (CMS) has announced the parameters that will guide calendar year 2010 individual and state costs for the Medicare Part D drug benefit. These data, as well as enrollment data for persons dually eligible for Medicare and Medicaid, and FFIS projections of federal medical assistance percentages—FMAPs—for federal fiscal year (FY) 2011, permit preliminary estimates of state clawback multipliers and costs for 2010.
Issue Brief 09-14 Updated Estimates of ARRA Bonus FMAPs April 8, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) contains provisions that increase Medicaid grants to states for 27 months by increasing their federal medical assistance percentages (FMAPs), the share of state programs paid by the federal government. The bonus increases can change each calendar quarter based on state unemployment rates. FFIS estimated the new FMAPs for the first two quarters of federal fiscal year (FY) 2009 and their impacts in February 2009 (see Issue Brief 09-05). This brief estimates FMAPs for the third quarter based on new data and uses those rates to re-estimate the overall impact on states through December 2010. The overall increase in Medicaid grants to states is now estimated to equal $81.2 billion.
Issue Brief 09-13 ARRA Guidance Issued on Transitional Medical Assistance April 7, 2009
Summary On April 6, 2009, the Centers for Medicare and Medicaid Services (CMS) released guidance to state Medicaid directors on the implementation of provisions in the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) related to Transitional Medical Assistance (TMA). Section 5004 of ARRA extends TMA through December 31, 2010, and provides states with the option of amending TMA eligibility requirements, effective July 1, 2009. At the same time, however, it creates new reporting requirements for states.
Issue Brief 09-12 Violence Against Women Formula Grants in ARRA April 1, 2009
Summary The Office on Violence Against Women (OVW) has released the grant solicitation for the Services-Training-Officers-Prosecutors (STOP) Violence Against Women formula grant program, as funded by the American Recovery and Reinvestment Act (ARRA). The solicitation includes basic information regarding uses of funds, reporting and implementation requirements.
Issue Brief 09-11 FY 2009 Highway Obligation Limitations Published March 31, 2009
Summary The Federal Highway Administration (FHWA) has published the federal fiscal year (FY) 2009 federal-aid highways state obligation limitations under the Safe, Accountable, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The total of $32.7 is almost identical to the level for FY 2008, but the $26.7 billion provided in the American Recovery and Reinvestment Act of 2009 (ARRA) means that overall FY 2009 funding to states for highway construction increases 82%.
While the ARRA grants will come from the general fund, increased levels of grants and declining revenues have meant that the highway trust fund would have reached a zero balance in FY 2009. In response, Congress transferred $8 billion into the trust fund from the general fund. It is clear now that an additional transfer will be necessary, and it appears that the FY 2010 budget resolution will make room for such a transfer.
Issue Brief 09-10 FY 2011 FMAP Projections March 25, 2009
Summary The release of preliminary personal income data for calendar year 2008 and revised estimates for 2006 and 2007 permits projection of fiscal year (FY) 2011 federal Medicaid matching rates (Federal Medical Assistance Percentage—FMAP). Based on new data published by the Bureau of Economic Analysis (BEA), 18 states would receive increased FMAPs in FY 2011 and 21 would see decreases. On net, these FMAP shifts would result in an estimated $280 million increase in FY 2011 Medicaid grants, continuing recent net increases after net decreases earlier in the decade.
These shifts, if they occur, would be limited through the first quarter of FY 2011 by the impact of the American Recovery and Reinvestment Act of 2009 (ARRA), which holds states harmless from any FMAP reduction from October 2009 through December 2010.
Personal income in the United States grew 3.9% in 2008, a decline from 6.0% in 2007 and substantially slower than in 2004-2006. However, the growth was still faster than the first years of the decade. All states but Alaska shared in the 2008 slowdown. Regional growth rates were mixed, as some slower-growing states accelerated and faster-growing states declined.
Per capita personal income growth declined nationally to 2.9% from an average of 5.5% over the previous two years.
Issue Brief 09-09 ARRA Provides Big Funding Boost for State Energy Program March 18, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-05) provides $3.1 billion in for the State Energy Program (SEP, CFDA 81.041). This is an enormous funding increase for a program that has never received annual funding of more than $50 million. Accordingly, both states and the Department of Energy (DoE) have a steep learning curve to navigate as they seek to distribute and invest program funds in a timely and effective manner. To that end, DoE has released a Funding Opportunity Announcement (FOA) that explains the steps states must take to secure their shares of funding. This brief summarizes that announcement.
Issue Brief 09-08 ARRA Continues Health Centers Expansion March 11, 2009
Summary While many discretionary grant-in-aid programs received little or no increases in funding over the last 10 years, health centers appropriations more than doubled. Funding for this group of programs flows directly to such centers, often bypassing state and local governments. The American Recovery and Reinvestment Act of 2009 (ARRA) continues the growth, with 125 centers funded to date. This brief provides background on the program so that states are able to place it and its expected growth into context.
Issue Brief 09-07 Dept. of Justice Announces VOCA Grants March 11, 2009
Summary The Department of Justice (DOJ) has announced state allocations of the Victims of Crime Act (VOCA) compensation and assistance program grants as appropriated in the American Reinvestment and Recovery Act of 2009 (ARRA). The Office for Victims of Crime (OVC) at DOJ has also set a March 24, 2009, solicitation deadline for the OVC competitive grants provided in ARRA.
Issue Brief 09-06 UI ModernizationIncluded in Stimulus Bill March 4, 2009
Summary The American Recovery and Reinvestment Act of 2009 (ARRA) appropriated $7 billion in funding for unemployment insurance (UI) modernization incentive payments to states. These provisions are intended to encourage states to expand unemployment compensation coverage. The ARRA also included $500 million for state UI administration grants.
Issue Brief 09-05 Estimated Stimulus FMAP Increases February 24, 2009
Summary Title V of the American Recovery and Reinvestment Act of 2009 (ARRA) increases the federal share of Medicaid and other programs—the Federal Medical Assistance Percentage (FMAP)—for 27 months. FFIS estimates that these provisions will increase Medicaid grants to states by a total of $80 billion. Part of this FMAP increase is also provided to the foster care and adoption assistance programs.
Issue Brief 09-04 Stimulus Proposals Include UI Modernization January 29, 2009
Summary More than 30 states currently have Unemployment Insurance (UI) trust fund reserve levels that are considered inadequate according to nationally recognized standards. Seven states currently have outstanding loans from the federal unemployment account. Given the projected duration of the current recession, more states may need to follow suit. Outside of federal (interest-bearing) loans, there are two primary options for transferring federal funds into state UI programs based on recent precedent and legislative proposals:
1) a no-strings attached distribution of excess funds in the federal unemployment trust fund, known as a Reed Act distribution, or
2) incentive payments tied to efforts at increasing UI coverage, as detailed in the UI Modernization Act.
Both the House and Senate economic stimulus packages include UI modernization incentives.
Issue Brief 09-03 Medicaid DSH Ceilings Published January 26, 2009
Summary The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA; P.L. 108-391) increased ceilings for disproportionate share hospital (DSH) payments for FY 2004 and beyond. On December 22, 2008, the Centers for Medicare and Medicaid Services (CMS) published a notice in the Federal Register delineating final FY 2007 DSH ceilings. That publication was also intended to publish preliminary FY 2009 ceilings. However, those data were dropped from the published table, and were finally published on January 26, 2009. Also published in December 2008 were ceilings on DSH payments to institutions for mental disease (IMDs) and other mental health facilities.
Section 5007 of the House stimulus bill would further increase DSH ceilings for all states by 2.5% for FY 2009 and another 2.5% from the new FY 2009 ceilings for FY 2010 for high-DSH states.
The MMA also contained language requiring DSH reporting and auditing. CMS published that rule on December 19, 2008, effective immediately.
Issue Brief 09-02 Estimated Impacts of House Stimulus FMAP Provisions January 23, 2009
Summary Title V of the House of Representatives’ stimulus bill, the American Recovery and Reinvestment Act of 2009, contains provisions that would increase Medicaid grants to states for 27 months by increasing their federal medical assistance percentages (FMAPs), the shares of state programs paid for by the federal government. FFIS estimates that these provisions would increase Medicaid grants to states by a total of $82.5 billion.
Issue Brief 09-01 SNAP Participation Highest On Record January 8, 2009
Summary The Department of Agriculture (USDA) recently updated its figures for individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits. The participation rate increased more than 17% between September 2007 and September 2008, a clear indicator of current economic conditions. In anticipation of a stimulus package to be considered in Congress, advocacy groups are calling for an increase in the SNAP benefit amount as well as providing more funds for state administrative costs. Sharing their view are economists who believe that dollar-for-dollar, an increase in SNAP benefits would be the best type of stimulus to jump-start the economy.
