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Thinkpad The fiscal year ended at midnight Thursday, and generally, states must then forfeit unspent federal grant money.
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Laptop Computers Oct 3, 2004 (AXcess News) Washington - Although negotiations over more than $1 billion in unspent children's health care funds may continue past the midnight deadline Thursday, there is hope for a compromise, parties on both sides of the dispute said.Staff from the Department of Health and Human Services were working with a bipartisan congressional committee to decide the best use for $1.1 billion in unspent funds from the State Children's Health Insurance Program. The fiscal year ended at midnight Thursday, and generally, states must then forfeit unspent federal grant money.SCHIP provides health care for poor children through grants to states.
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Laptop Computer A bill introduced by Sens. John D. Rockefeller IV, D-W.Va., and Lincoln D. Chafee, R-R.I., would let the states keep the money for health care. HHS wants the money back so it can educate families about the program and enroll more children.
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Desktop Computer Bill Pierce, an HHS spokesman, said some political groups are leading people to believe that the midnight deadline means the funds are gone. "If they are truly interested in helping children, we can go beyond this deadline," he said.In the past, Congress has restored funds to programs after the fiscal year ends. Pierce said it could happen again. "It's not the end of the effort if an agreement is not reached by midnight," he said.
Notebooks Edwin Park, senior health policy analyst for the Center on Budget and Policy Priorities, a liberal social policy group, said restoring the funds would not solve the problem.Advertisement"As time passes, states make decisions based on what they see in their funds," he said.
Lenovo If states don't see ample funding for SCHIP they may make substantial program cuts, he said.
Hard Drive HHS is planning to redistribute $660 million left over from 2002 to at least six states that expect shortfalls in 2005, but Park said that isn't a long-term solution. "This approach would enlarge the federal SCHIP funding shortfalls that many states face in 2006 and 2007," he wrote in a report published Thursday.
Travelstar These shortfalls could affect as many as one-third of the states, he said.
Gateway Pierce said the "very well intended" legislation to allow states to keep the unspent money isn't a solution either. Under it, at least three states face shortfalls in 2005, he said.
Laptop Parts Pierce said the $660 million will help those states. To address future problems, Pierce said HHS is proposing that the program be reauthorized in 2005, two years ahead of schedule.
Software The HHS proposal to enroll more children would fulfill President Bush's promise made during the Republican National Convention.
Hard Drives Park, however, see this as an empty promise. "Finding the kids is great, but if you don't have the funds to cover them it doesn't make a lot of sense," he said.Source: Scripps Howard Foundation Wire
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