Governor Perdue, 12 Fellow Governors Send Letters to Congressional Leadership Urging Action on S-CHIP

WASHINGTON, DC – In Washington D.C. for the National Governors Association Winter Meeting, Governor Sonny Perdue urged Congress to act quickly in funding the State Children's Health Insurance Program (S-CHIP) at a press conference today. Governor Perdue was joined at the press conference by seven of his fellow governors.

"PeachCare is a successful program that ensures Georgia's children have health care coverage," Governor Perdue said. "In March, we will be forced to suspend all new enrollment, which is not an action we want to take. We want every child eligible for PeachCare to have it available to them, but for this to happen we need immediate Congressional action."

Today's press conference follows a letter that Governor Perdue and 12 other governors sent to Congressional leaders on Friday.  In addition to Governor Perdue, the letter was signed by the governors of Alaska, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, Rhode Island, South Dakota, and Wisconsin.  The letter was addressed to Senate Majority Leader Harry Reid, Speaker of the House Nancy Pelosi, Senate Minority Leader Mitch McConnell, House Minority Leader John Boehner, Senate Finance Chairman Max Baucus, Senate Finance Ranking Member Charles Grassley, House Committee on Energy and Commerce Chairman John Dingell, and House Committee on Energy and Commerce Ranking Member Joe Barton.

"We request that you consider covering current year shortfalls at the earliest possible opportunity, whether as stand alone legislation or in the emergency supplemental appropriations bill," the letter states. "Our states stand ready to be partners in this program and meet the state portions of the funding, but the clock is ticking.  We need Congressional assistance quickly to strengthen and preserve this successful program."

In the letter, the 13 governors requested that Congress address the looming Fiscal Year 2007 federal funding shortfall for the State Children's Health Insurance Program (S-CHIP).  The governors noted that S-CHIP's bipartisan approach to children's health insurance is a national success, but the program's formula has resulted in funding shortfalls for the states putting children's insurance at stake.  Noting this, they urged Congress to cover current year shortfalls as quickly as possible either in stand alone legislation or in the emergency supplemental appropriations bill.

The text of the letter follows:

February 23, 2007

We are writing today to request your assistance in addressing the looming Fiscal Year 2007 federal funding shortfall for State Children's Health Insurance Program (S-CHIP).  Unless Congress acts expeditiously, health insurance for some of our states' most vulnerable citizens is in jeopardy.

As you know, Congress created S-CHIP in 1997 as a bipartisan approach to address the growing number of children without health insurance in America.  The stated goal of the program was to provide insurance to five million low-income children within ten years.  With more than 6.1 million children receiving benefits, S-CHIP has met that goal and is widely considered a national success.

Despite this success, S-CHIP is governed by a flawed and counterproductive distribution formula that penalizes the states successfully implementing the mission of the program.  According to the Congressional Research Service, forty states now have expenditures greater than their federal S-CHIP allotment per year and at least fourteen states are facing federal matching shortfalls for FY 2007.  Without quick Congressional action, our states, all facing federal shortfalls, will be forced to make harsh decisions affecting the lives of thousands of families.

With states facing federal matching shortfalls as early as March, S-CHIP funding has reached critical status in many of our states.  We request that you consider covering current year shortfalls at the earliest possible opportunity, whether as stand alone legislation or in the emergency supplemental appropriations bill.  Our states stand ready to be partners in this program and meet the state portions of the funding, but the clock is ticking.  We need Congressional assistance quickly to strengthen and preserve this successful program.

Thank you for your time and assistance in this important matter.