As Michigan faces an estimated shortfall in its fiscal year 2011 budget of $1.8 billion, further deep cuts in health services will be inevitable if lawmakers fail to address the need for new revenue by modernizing the state's tax system to match our current economic realities. In the current state budget, lawmakers relied heavily on federal  stimulus dollars under the American Recovery and Reinvestment Act (ARRA) to prevent deeper cuts than those ultimately adopted.

ARRA included an increased federal contribution to state Medicaid programs (FMAP), which is scheduled to end on December 31, 2010. Since Congress has signaled its intent to extend the increased FMAP by six months, state budgets across the country have been built on the assumption that Congress would extend it, including Governor Granholm's proposed budget.

Both chambers have passed the American Workers, State, and Business Relief Act of 2010, which includes the FMAP extension, but movement has stalled as differences are worked out between the Senate and House.

Contact YOUR U.S. Representative and Senators Carl Levin and Debbie Stabenow and URGE them to call on Congressional leaders to move quickly to extend the temporary increase in the FMAP and finish the job before the Memorial Day recess. Find out more in our May 4 Action Alert