The One-Two Punch

When the state makes deep cuts in health care such as those proposed in the Governor’s budgets, the cuts from state sources are only part of the story. Such cuts are exacerbated by losses of federal revenue. In fact, the Governor’s “Book 1” budget would forego nearly $200 million in federal revenue for health care and economic service programs.1 

Here’s why. Most state efforts to provide health care for children, lower income families, the elderly, and people with disabilities are funded through federal/state partnerships. In health care, the amount of federal funding Washington State receives is largely determined by how much we spend of our own revenue.  In almost every case, we get more than one federal dollar for every state dollar we spend – more than doubling our money.

For example, the Governor’s “Book 1” budget proposes reducing funding for Apple Health (which provides health insurance for children from lower income families) by $12 million. This would result in a loss of federal funding of $21 million. The combined result would eliminate health insurance coverage for 16,000 lower income children.

Examples of proposed cuts that would reduce federal funding in Washington State are given in the table below.