Stimulus package would provide state budget relief to Georgia

(ATLANTA) - A briefing released today finds that the economic stimulus packages being considered by the U.S. House and Senate would provide more than $300 million in state budget relief to Georgia in the form of higher federal payments through the Medicaid and PeachCare programs.

As both the national and state economic situation continues to deteriorate, Georgia’s budget and its citizens are further squeezed. While a declining economy brings with it declining state revenues, it also brings growing demand for services as jobs are lost, healthcare costs increase, and wages fail to grow. Declining revenue combined with already low state expenditures threatens crucial services to Georgians in need.

In order to assist states across the country, an effort is underway in the U.S. House and Senate to pass additional economic stimulus legislation that includes direct financial assistance to states in need. One method, which was also used in federal fiscal relief efforts in 2003, is to increase payments to states through the Medicaid and SCHIP (PeachCare in Georgia) programs. This method is especially useful because it helps to immediately address state budget shortfalls and involves low administrative costs as it builds on existing programs.

Click here to read the briefing.