Colorado needs fiscal relief as unemployment skyrockets
DENVER (July 18, 2020) – With Monday’s adjournment of the state legislature, the Colorado Consumer Health Initiative (CCHI), Colorado Fiscal Institute, Colorado Children’s Campaign, and Hunger Free Colorado are calling on Senators Cory Gardner and Michael Bennet to move quickly in the Senate on the next COVID-19 relief package and ensure it includes increased federal support for Medicaid and food assistance programs and fiscal relief to state and local governments. Despite lawmakers passing legislation that offers some revenue for key state priorities, drastic cuts to the state budget mean there is an ongoing and urgent need for federal support so families and communities with the most barriers to overcome can access health care and nutrition support programs.
As unemployment reaches a record high level of 11.3 percent, hundreds of thousands of Coloradans will be leaning on Health First Colorado (Medicaid) and the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) to stay healthy and keep food on their tables. The serious economic effects of the COVID-19 pandemic have also drastically reduced tax revenue just when demand for public services is skyrocketing. Though Colorado lawmakers were able to close a $3.3 billion budget shortfall, it came at the cost of cuts to important health support programs when Colorado kids and families need them most. Colorado is anticipating about 500,000 new Medicaid enrollees by the end of the year, nearly all of whom will also be leaning on food assistance.
During the last recession, 40,000 Colorado kids fell into poverty and the state’s child poverty rate did not return to pre-recession levels for five years. Now, with even more families struggling to afford the basics like a roof over their head and food on their table, even more children will be experiencing the toxic stress of poverty during critical developmental periods. We must do more to help Colorado families recover quickly from these twin economic and public health crises.
Our organizations are calling on Colorado’s congressional delegation to continue to take action to provide necessary fiscal relief to states. While the House of Representatives acted on May 15th to pass the HEROES Act, the Senate has yet to take up this fourth COVID-19 relief package. Additional relief is necessary so the state is able to continue to respond to the needs of our residents amidst the fallout of the pandemic. Not only are Medicaid and food assistance two of the most important and responsive programs during a public health crisis, they also act as critical economic stabilizers for local economies. Senators Bennet and Gardner should act now to ensure increased and sustained federal funding for Medicaid and food assistance programs so Colorado families and local economies can come back from this devastating time in our history.
We are calling for:
- Flexible fiscal relief to the state to alleviate budget cuts to critical public services caused by COVID-19 and avoid further economic hardship
- A sustained increase of 14 percentage points or more to the Federal Medicaid Assistance Percentage until at least June 30, 2021
- Keeping strong Maintenance of Effort provisions for Medicaid to prevent eligibility cuts
- An increase of 15% in SNAP benefits for families
- Longer-term funding to cover the increased need for food assistance programs
- Extension of the Pandemic EBT program for children who qualify for free and reduced lunch through the 2020-2021 school year, and inclusion of children who qualify in pre-kindergarten
- Extensions of waivers helping families currently getting food through SNAP, school meals, WIC, and emergency feeding programs
“We must do more to ensure that families can access affordable health care and basic nutrition at this critical time,” said Adam Fox, director of strategic engagement with CCHI. “Due to the pandemic, thousands of families, especially Black and Latinx families that are already disproportionately impacted by the virus, are facing a loss of jobs, health insurance, transportation, child care and much more. Colorado needs a substantial and ongoing boost in federal funding for Medicaid and Food Assistance programs to serve the increasing needs of Coloradans.”
“Workers who have been laid off by their employer shouldn’t have to worry about basic needs like being able to feed their kids or affording a doctor visit,” said Kathy White, deputy director of the Colorado Fiscal Institute. “Not only are Medicaid and food assistance important tools for helping families make ends meet during difficult economic times, they also have a stabilizing effect on local economies. In 2017 alone, food assistance helped create over $700 million in
economic activity for local retailers, and Medicaid pumps nearly $6 billion into Colorado’s economy every year. If Congress allocates more fiscal aid for states, it will be a win for both Colorado families and the state’s economy.”
“Increased Medicaid and food assistance funding are critical for Colorado at this moment,” said Erin Miller, Vice President of Health Initiatives with the Colorado Children’s Campaign. “This state legislative session also showed us the importance of ensuring that enhanced Medicaid funding comes with strong maintenance of effort requirements — it is only these requirements that delayed benefit cuts and copay increases for people who use Medicaid for their health insurance now — often those Coloradans who face the greatest barriers to health and wellbeing already and many people of color who our systems too often leave behind.”
“As we recover, the health of our state will be reliant on Colorado families’ access to health care and nutritious food. We need long-term investments and policies in place to ensure they are available. These programs are vital to Colorado families right now, and we need to ensure they continue to provide the resources and care families need through this uncertain time,” said Ashley Wheeland, Director of Public Policy for Hunger Free Colorado.
Media Contact:
Adam Fox, 303-563-9108
Elliot Goldbaum, 303-990-6691
Ellie Agar, 720-464-3620