Jan Brewer: Our strapped state needs flexibility

Jan Brewer: Our strapped state needs flexibility

12 comments by Jan Brewer - Dec. 19, 2010 12:00 AM

Heading into a new year with a new Legislature and a new Congress, the primary area of budget focus for Arizona will be our need for action by the federal government on "Obamacare."

If our state budget is to be balanced, it will require action by Congress and the White House. They must provide flexibility to states so we have the ability to create sustainable Medicaid programs. Arizona's AHCCCS program cannot possibly grow at the pace Obamacare is now requiring.

It impacts our state budget by roughly $1 billion and continues to impact it at a growing rate every year.

So, if the federal government does not repeal the Obamacare legislation, all other programs in state government are subsequently threatened.

In response to the state's fiscal crisis, the Legislature and I have cut $2.2 billion in government spending. The cuts have included reductions of:

- 22 percent in personnel.

- 18 percent in K-12 per-pupil state support.

- 25 percent in university per-student state support.

- 5.5 percent in per capita correctional spending.

- 40 percent fewer child-care enrollees.

The cuts also have reduced the number of families on cash assistance by 35 percent and resulted in less benefit coverage for the seriously mentally ill population, as well as the elimination of most non-federally mandated Medicaid services.

But uncontrolled, federally mandated Medicaid spending continues to erode our citizens' other spending priorities. In fiscal 2007, K-12 education accounted for 42.2 percent of state general-fund expenditures and Medicaid for 18.2 percent.

For our current state budget, fiscal 2011, K-12 education is now 37.5 percent of state general-fund spending, and Medicaid is 30.3 percent.

The federally mandated higher coverage level to Arizona and the other states began in February 2009 with the Obama stimulus package, which included strict prevention of any state adjustments to Medicaid eligibility that would slow its enrollment growth.

The obvious ramifications were initially delayed because federal funds were provided to pay for the mandates. That federal funding has now ended, and the full brunt of the mandate is now being realized.

I continue to push for a federal solution to this problem created by the federal government, including a bipartisan, multistate federal lawsuit proceeding in Florida last week.

If the Obamacare federal mandates are removed, and state flexibility is restored, state policy makers would be allowed to design a fiscally sustainable Medicaid program - a package of services that Arizona taxpayers can actually afford over the long term and with a prioritization of various services deemed most appropriate by state elected leaders instead of bureaucrats in Washington, D.C.

This explains why our financial future pivots on the future of Obamacare, and why ending those mandates will be so critical - and difficult.

My goal is a limited, disciplined Arizona government focused on providing our citizens the opportunity to prosper and improve. We cannot successfully foster a climate of long-term and sustainable growth with ever-expanding Washington mandates. And we cannot be successful in our important mission without federal action to specifically rein in the mandated spending on Medicaid.

Jan Brewer is governor of Arizona.


Read more: http://www.azcentral.com/arizonarepublic/viewpoints/articles/2010/12/19/20101219state-budget-crisis-brewer.html#ixzz18dCyr9q0