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                                                      PRINTER'S NO. 4416

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE RESOLUTION

No. 694 Session of 2002


        INTRODUCED BY SOLOBAY, DeWEESE, COSTA, FRANKEL, GRUCELA, BEBKO-
           JONES, BELARDI, BELFANTI, BUNT, CAPPELLI, COLAFELLA,
           CORRIGAN, DALEY, D. EVANS, GEORGE, HARHAI, JAMES, LAUGHLIN,
           McGEEHAN, MELIO, PETRARCA, PISTELLA, READSHAW, ROONEY,
           SAINATO, SCRIMENTI, THOMAS, TIGUE, WALKO, WOJNAROSKI,
           G. WRIGHT, YOUNGBLOOD AND JOSEPHS, OCTOBER 8, 2002

        REFERRED TO COMMITTEE ON INTERGOVERNMENTAL AFFAIRS,
           OCTOBER 8, 2002

                                  A RESOLUTION

     1  Urging the Congress of the United States to quickly pass the
     2     State Budget Relief Act of 2001, HR 3414.

     3     WHEREAS, The Commonwealth of Pennsylvania anticipates a $1.8
     4  billion revenue shortfall for the 2003-2004 fiscal year due to
     5  the economic downturn, which could rise substantially due to
     6  additional State costs for homeland security and the loss of
     7  other State revenues due to tax cut provisions included in
     8  Federal economic stimulus legislation; and
     9     WHEREAS, Because of the loss of revenue as a result of the
    10  recession and the new demands for public services since
    11  September 11, 2001, State and local governments are facing deep
    12  cuts in vital public services, including public health systems,
    13  education and health care; and
    14     WHEREAS, The Commonwealth of Pennsylvania is currently
    15  experiencing a 5.4% unemployment rate; and


     1     WHEREAS, The numbers of displaced workers increase the demand
     2  for additional Medicaid coverage and other essential safety net
     3  services and place additional strain on the existing budget
     4  deficit; and
     5     WHEREAS, State and local spending accounted for close to 12%
     6  of our nation's Gross Domestic Product (GDP) in 2000, the
     7  slowing of state economies having affected all industries; and
     8     WHEREAS, Medicaid, though provided through a Federal-state
     9  partnership, accounts for approximately 16% of the Commonwealth
    10  budget; and
    11     WHEREAS, If no additional Federal funding is received by
    12  Pennsylvania, we will be forced to reduce benefits and
    13  eligibility to our most vulnerable citizens; and
    14     WHEREAS, The Federal Medicaid Assistance Percentage (FMAP)
    15  provides an efficient means to distribute aid to states with
    16  minimal administrative costs; therefore be it
    17     RESOLVED, That the House of Representatives of the
    18  Commonwealth of Pennsylvania urge the Congress to pass a
    19  temporary increase in Medicaid funding to provide immediate aid
    20  to states facing deficit budgets and increased costs to their
    21  Medicaid programs; and be it further
    22     RESOLVED, That the House of Representatives urge the Congress
    23  to quickly pass the State Budget Relief Act of 2001, HR 3414, or
    24  any temporary increase in Medicaid funding to assist our State
    25  in its budget crisis; and be it further
    26     RESOLVED, That copies of this resolution be transmitted to
    27  the presiding officers of each house of Congress, to the
    28  Pennsylvania congressional delegation and to Governor Mark S.
    29  Schweiker.

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