A bipartisan group of 43 governors has asked Congress to extend emergency federal funding for Medicaid set to expire in 2011.
Utah Gov. Gary Herbert is not among them.
"Utah is in an enviable position compared to other states in that we do not need additional federal stimulus funds to balance our budget," said the Republican governor through a spokeswoman.
Herbert's suggested alternatives for supporting Medicaid include various local pots of one-time funding, including the Rainy Day fund. But if the federal cash is offered, he acknowledges, Utah will take it.
Turning down the money would be foolish, Herbert said, "as Utahns will be responsible for eventually repaying it."
Family advocates say a cash infusion couldn't be more timely as Utah lawmakers look to withdraw Medicaid coverage from at least 4,000 seriously ill and injured children and pregnant women.
"We should be happy for whatever assistance we can get," said Karen Crompton, Executive Director of Voices for Utah Children. "As tough as it is for the state right now, families are worse off."
Medicaid enrollment in Utah and across the country has soared during the recession, as laid-off workers lose their employer-sponsored benefits and turn to the low-income health care program. Utah's own rolls jumped nearly 19 percent from June 2008 to June 2009, an increase second only to Maryland, according to a February report by the Henry J. Kaiser Family Foundation.
To help, the federal government has been sending a higher federal match for dollars spent by the states.
Governors who signed the Feb. 21 letter said continuing the extra spending for a proposed additional six months would "greatly assist us in maintaining services and further stabilizing the economy."
The letter, written at the recent National Governors Association meeting, also called for more flexibility in how states spend Medicaid funds.
But Herbert contends building budgets around one-time federal funding will more likely hurt states, creating structural budget deficit for years to come.
Salt Lake County Mayor Peter Corroon, a Democratic contender for the governor's seat, said Herbert's logic presumes the economy will never rebound.
Stimulus funding has "saved [the county's] mental health and substances abuse services at a time of great need," said the Mayor who has lobbied Congress for more relief.
Utah has received $210 million in Medicaid stimulus dollars since fiscal year 2009, according to the Governor's Office of Planning and Budget. Over the coming year, the state will net another $56 million.
And an extension would mean $50 million-$70 million more.
But Rep. John Dougall, co-chairman of the Health and Human Services budget committee, isn't inclined to back away from the cuts proposed.
Assuming extra money is found, Dougall said he wants to use it to shore up the state's foster care system and waiting list for disability services.
"Governor Herbert is absolutely correct," said the Highland Republican. "Congress shouldn't bail out those states who continue to mismanage their budgets while placing an enormous burden of debt on future generations of Americans."
