Reid vows Nevada will get funding for Medicaid

WASHINGTON -- Sen. Harry Reid said Tuesday that Nevada leaders "will get what they are planning on" for Medicaid funding after Democrats proposed to restore $24 billion in aid for cash-strapped states.

That money had been cut from a tax break and benefits bill by House leaders last month after a revolt by deficit-conscious lawmakers over the amount of spending in the measure. The scaled-back bill passed on May 28.

During Senate debate Tuesday, Sen. Max Baucus, D-Mont., introduced an amendment to restore the funding, with other changes in the House bill intended to attract enough votes for Senate passage.

Nevada is among at least 30 states that are counting on Congress to provide the Medicaid funding. Reid, the Senate majority leader, said most senators "have received calls from our governors" about Medicaid, the free health care program for the poor, disabled and blind.

Officials in several states say that without the additional funding, workers will have to be laid off and other budget cuts will have to be made to make up for the budget shortfall.

In Carson City on Tuesday, Gov. Jim Gibbons said he will be forced to make additional state spending cuts unless Congress restores $130 million in Medicaid money for the state.

Gibbons said he and the Legislature built the state budget on the assumption that the federal government was increasing its share of matching funds for the program. Nevada had counted on having the federal government pay 64 percent of the costs of Medicaid, not 50 percent.

Last week, Deputy Chief of Staff Lynn Hettrick said Gibbons might have to call a special legislative session because he could not cut programs enough to cover the shortfall. But Gibbons said Tuesday that he could make the cuts without calling the Legislature into session.

Gibbons and Robin Reedy, his chief of staff, said they spoke with U.S. Department of Health and Human Services Secretary Kathleen Sebelius in a conference call this week about the Medicaid funds and got a positive response that funds would be appropriated.

"It is a huge concern for us," the governor said. "There is a lot of pressure on Congress to do something. A plethora of states, something like 48, have a Medicaid problem."

In a statement, Reid said the state aid "is important for Nevada because more than 160,000 children, parents, seniors and Nevadans with disabilities rely on Medicaid for affordable, quality medical care."

"In addition to ensuring medical coverage for these Nevadans, this funding will help our state retain employees and avoid additional cuts to services that would result from a nearly $90 million budget shortfall."

Reid said he wants the Senate to finish the bill as soon as possible, although it still faces key votes over its cost.

The bill contains a variety of elements, totaling $140.2 billion. It extends unemployment benefits through Nov. 30 and renews tax breaks that expired last year. It contains $1 billion for summer jobs and extends a popular tax break for states and cities that undertake borrowing for construction.

The Associated Press contributed to this report. Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.