Last year's federal stimulus package provided $87 billion in fiscal relief to states, helping them to prevent cuts to social service programs. This relief allowed states to continue to serve children, youth and families at a time of increased need and falling state revenues.

This assistance is scheduled to expire on December 31, 2010, in the middle of most states' fiscal years. Unfortunately, state revenues are not projected to increase in the coming fiscal year; in fact, states currently face shortfalls totaling $140 billion in fiscal year 2011. This means that without additional fiscal relief, states will have to institute massive new budget cuts and tax increases at the start of the new fiscal year on July 1, when unemployment is expected to remain at or near double-digit levels and the economy will likely still be fragile.

Already Governors around the country are proposing severe cuts to programs benefitting children and families, for example:

>>Arizona's governor is proposing deep cuts to a range of programs and services. If enacted, her budget would: eliminate the state's children's health insurance program (KidsCare), which covers 47,000 children; make deep cuts to support for early learning by eliminating preschool for 4,328 children and eliminating state support for full-day kindergarten; and reduce the number of months that low-income families can receive cash assistance through the Temporary Assistance for Needy Families (TANF) program, immediately eliminating assistance for 10,000 poor families, among other cuts.
>>Colorado's governor proposes to eliminate a scheduled increase in K-12 funding that would cover enrollment and cost increases and implement an additional cut of $223 million in school aid. He also proposes delaying payments to Medicaid providers and cutting payment rates.
New York's governor is proposing a $1.1 billion cut to state education aid; more than $400 million in reduced payments to health care providers and about $100 million in other health-related cuts; $143 million in funding cuts for four-year public colleges and cuts to a financial aid program serving students from low- and moderate-income families.
>>South Carolina's governor is proposing capping total enrollment in the state's children's health insurance program.

Click here to contact your member of Congress and urge them to act now to avoid cuts in vital services to children, youth and families by extending the FMAP and state fiscal stabilization assistance in ARRA. In addition, the FMAP extension should continue to apply to both Medicaid and Title IV-E (foster care), and the MOE should be extended beyond Medicaid to include CHIP.

Source: Every Child Matters Education Fund