Extending the State Fiscal Relief Provisions of the American Recovery and Reinvestment Act

June 8, 2010. The federal government’s failure to extend its increased share of state Medicaid costs would leave New York with an additional $1.06 billion in state budget cuts – on top of the cuts already on the table as part of Governor Paterson’s 2010-2011 gap closing plan. In this analysis, FPI calculates that if the state decided to fill the additional $1 billion dollar gap through workforce reductions, the number of layoffs would be in the 15,000-16,000 range. Another alternative, reductions to Medicaid reimbursement rates, would result in large numbers of hospital and nursing home layoffs and would seriously undermine patient care.