Governor Calls on President to Reverse Health Care Cuts for Oregonians

"I need a commitment from you that the federal government will be a reliable partner that helps states meet the needs of the citizens it serves," the Governor added.

People in Oregon like this woman who lost her apartment to fire, may become even poorer under Bush's new economic strategy Photo By: Tim King

(Washington, D.C.) - While attending the National Governor`s Association conference in Washington, D.C., Monday, Governor Ted Kulongoski delivered a letter to President Bush asking for a renewed federal-state partnership when it comes to providing services for Oregon`s most vulnerable citizens. `When I signed a balanced biennial budget for Oregon in August of 2005, it was with the understanding that the long-standing partnership between the federal government and our state to deliver human services would continue," the Governor said in his letter. `However, over the last six months, we have seen a dramatic erosion of federal support at a time when our human services needs are increasing." The Governor`s letter detailed the impacts that the Deficit Reduction Act (DRA), which passed earlier this year, and the President`s proposed budget for Fiscal Year 2007 will have on Oregon`s ability to maintain the current level of essential services - particularly children and older Oregonians. The Governor cited three specific areas of concern:

o Federal Match Rate: The reduction of the federal Medicaid match rate impacts the current biennium by threatening the loss of approximately $24 million dollars to help Oregon`s seniors and people with disabilities.

o Targeted Managed Care: The Deficit Reduction Act and the President`s proposed budget for FY 2007 would result in millions of lost dollars to Oregon targeted to help keep families together and move kids out of the welfare system into a stable, loving home.

o Elder Care & Medicaid: The proposed budget for FY 2007 cuts the provide tax rates from 6 percent to 3 percent ? which in Oregon means more than $45 million/year will be cut from nursing homes and Medicaid, hurting the most vulnerable Oregonians.

`The combination of cuts passed and those proposed will create new barriers to existing challenges in providing health care for our children, seniors, working families, and people with disabilities," the Governor continued. `As a former governor, I am sure you can appreciate the values states place in a strong federal state partnership, particularly as it relates to human services. I need a commitment from you that the federal government will be a reliable partner that helps states meet the needs of the citizens it serves," the Governor added.

Tomorrow the Governor is meeting with the Oregon Congressional Delegation to share these concerns in addition to changes to the Food Stamp Program that will challenge Oregon`s ability to continue the progress of reducing the hunger rate from first to 19th in the nation over the last three years.