Monday, May 19, 2003 | 8:59 a.m.
It's been clear for more than half a year now that the states are facing one of their worst budget crises ever. Revenue collections have fallen and the demand for services have increased as the recession lingers. In response, government programs are being slashed and taxes are being raised by states across the nation. The weakening of the economy, which means more people are out of work, has put an additional strain on state governments to provide enough funding for federal-state programs, including Medicaid, which provides medical care for the poor. Nevertheless, Washington has been slow to help the states, nearly all of which, unlike Congress, have to balance their budgets.
That is why it was somewhat encouraging on Thursday that the U.S. Senate voted 95-3 to pass an amendment, as part of a $350 billion tax cut bill, that also gives the states a total of $10 billion a year for the next two years to help pay for vital services, such as Medicaid. If the House agrees and the provision becomes law, Nevada would stand to gain $37.1 million for its Medicaid program and an additional $40.8 million in other grants. The federal government probably could have done more, but in times like these every bit helps. Sen. Harry Reid, D-Nev., voted for the assistance, but Sen. John Ensign, R-Nev., was one of the three who voted against the proposal. "He just felt that in a time when the government is in a deficit situation that it was irresponsible to add to that," Jack Finn, Ensign's spokesman, told the Sun.
It is odd that Ensign would emphasize deficit reduction when he also has been supporting President Bush's large tax cuts. After all, deficit hawks have said the tax cuts are irresponsibly adding to the national debt. Ensign believes that cutting taxes would get the economy moving again, but the fact is that they will place a much greater strain on the deficit than would $20 billion in relief to state governments, a pittance for the federal government. Ensign's reasoning belies common sense and his vote was a disappointment.
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