The U.S. Senate's Failure to Move the Jobs Bill That Would Have Provided $273 Million to the Maryland for Fiscal Relief Through an Extension in Medical Assistance

Jun 25, 2010, 15:59 ET from Maryland Association of Nonprofit Organizations

BALTIMORE, June 25 /PRNewswire-USNewswire/ -- As a result of the Senate's failure to pass its version of jobs legislation, Maryland won't receive $273 million in federal assistance, forcing even deeper spending cuts than we've already endured in the face of an unprecedented drop in revenues brought on by the recession. 

These actions will cause private- and public-sector job losses and raise the risk of a double-dip recession as the loss of spending power ripples through the economy.  Without more federal aid, state budget-cutting actions nationwide could cost the economy 900,000 jobs in the public and private sectors over the next year.

"The President, the House and the Senate all endorsed previous versions of this crucial assistance. As a result, Maryland, acting in good faith, counted on the funding to balance its budget for the fiscal year that begins next week," said Neil Bergsman, director of the Maryland Budget and Tax Policy Institute.  "What is more important, though, is the hardship this withdrawal of funds will cause to unemployed and low-income Marylanders. These individuals and families will use the money for day-to-day necessities. It will immediately recycle into local businesses, helping to fuel the economic recovery."

Congress should not leave for the July 4 holiday until it provides additional funding to states to help pay for Medicaid services and avoid deeper spending cuts and more job loss in Maryland.

The Maryland Budget and Tax Policy Institute is a nonpartisan research organization that provides timely, accurate and accessible analysis of state budget and tax issues.  In addition to general budget and tax research and analysis, the Institute examines issues affecting low-income Marylanders and other vulnerable populations and the important community programs that serve them. The Maryland Budget and Tax Policy Institute is funded from foundation grants, and individual donations.  The Institute is a project of The Maryland Association of Nonprofit Organizations and a part of the State Fiscal Analysis Initiative ( and the Economic Analysis and Research Network, both of which are national networks of policy research organizations.

SOURCE Maryland Association of Nonprofit Organizations