Details are foggy right now, but it sounds as if the Senate is expected to vote tonight on extending the FMAP bump to states. As has been previously mentioned here in The Rural Voice, the FMAP is the methodology used by the federal government to provide states funding for the Medicaid program. Prior to the stimulus bill, Colorado was a 50/50 state. For every dollar Colorado spent on Medicaid, the federal government matched that with a dollar. Since the stimulus package went into effect, Colorado's FMAP has been approximately 60/40, which has provided the state some relief. Currently, the big issue facing our state (as well as 20+ other states) is that Colorado crafted the state FY10-11 budget assuming our state would get the FMAP extension that is being voted on tonight. The increased FMAP bump is set to expire at the end of December 2010. If Congress fails to extend this FMAP increase, Colorado will be approximately $200 million short in our current fiscal year, which ends July 31, 2011. This will mean major cuts to state services as we move into 2011. On a good note, this past weekend the Denver Post reported that revenues for the state are better than expected since last budget revenue forecast. This means the $75 million in cuts that Governor Ritter was set to address this month may not have to happen afterall. Keep your fingers crossed and as always, stay tuned for more budget fun as the next budget revenue forecast will come out in September.
