Tyler’s Take: We need to cut the strings to help out states

Published 10:39 pm Monday, August 23, 2010

As the budget deadline nears, the governor and many in the Legislature want the federal government to bail out the poor budgetary decisions made over the last several years. Some lawmakers are relying on a massive infusion of federal money to balance the budget, but while federal dollars solve the temporary problem of balancing the state’s books, it creates more problems.

It’s often been said that there’s no such thing as a free lunch, and it seems like this anecdote was conceived by federal policymakers. While the government has been willing to help states with cash bailouts, they have done so by tying the hands of the states who receive the help.

This year, the federal government is once again placing restrictions on what we can do with money given to help erase our budget deficit.

The Federal Medical Assistance Percentages money expected from the government to help fund Medicaid ties the hands of Michigan lawmakers by not allowing us to make structural changes to our Medicaid laws to make them stronger and more cost-efficient. For example, even though Michigan is one of only a few states that covers able-bodied 19- and 20-year-olds, we are not able to drop them from our Medicaid rolls so we may provide for others in need.

Too many lawmakers are willing to use federal money as a crutch to get our books in order. This is a shortsighted solution. While this money may fix problems this year, what about next year? If we do not make any real long term changes this year, we will be reliant on federal money next year, the year after, and forever. We have to stop this endless cycle of attached strings and tied hands, and we need to have the courage to make the tough decisions to secure our economic future.

I look forward to hearing your comments on these important issues.  Please feel free to contact me by calling (888) 373-0078 or e-mailing sharontyler@house.mi.gov.