As our state lawmakers work to finalize the budget, there are several things for them to consider but not all aspects of it are in their control.

District 10 State Senator Jake Chapman says he’s especially concerned about the cost of Medicaid.  This year alone, Chapman says the state is responsible for paying an additional $220 million for Medicaid expenses.

“And the reason why it’s going up is not necessarily because we’re adding more people, but because the federal government determines, though a calculation called (the State Matching Percentage), how much federal dollars we get back.  Well if they cut that, which they have and they’ve continually done that year after year to us, the State of Iowa has to pick up that balance.”

Chapman says when that number exceeds what your revenue growth is, it’s very problematic and cuts into the ability to fund things like education, health and human services and mental health.  Plus, he says it doesn’t encourage states to be fiscally responsible.

“Because we’re doing better as a state, because we’re responsible and have economic growth, they in some ways penalize us by reducing that dollar amount.  So it’s really unfortunate because it’s telling folks that we should be irresponsible with our money.  We don’t have to look too far, to places like Michigan and California and those places, where they’re getting more money in federal dollars because they’re irresponsible with taxpayer money.”

Senator Chapman says he doesn’t see this issue improving until the federal government recognizes it as a problem and addresses it.