Calling all Business Leaders: Make it Your Business to Call Washington to Protect your State's Budget from Drastic Cuts

In Massachusetts and 29 other states, the fiscal year ends on June 30th. A year of harsh budget cuts is coming to an end and an equally challenging if more hopeful one is about to begin.

Enter a new budget crisis. Many states were counting on a six month extension of a certain temporarily increased medicaid matching rate authorized by the federal stimulus package. Both the U.S. House of Representatives and the Senate wanted this to happen, and passed very similar but as nearly always, slightly different versions of the package, known as the Federal Medical Assistance Percentages or "FMAP." The resolution of the details is taking a long time, and the 30 states, including Massachusetts, are put in a dangerous position as the fiscal year comes to an end and the budget must be balanced. 

Secretary of the Executive
Office of Health and
Human Services for
Massachusetts JudyAnn Bigby

In Massachusetts in particular, Secretary of Health and Human Services Dr. JudyAnn Bigby laid out the details and the bottom line: the resulting shortfall is projected to cause a $608 million gap, which would require an additional 3.6% reduction in spending in a budget that has already been cut several times. That reduction would have significant negative impact on public services in health care, education, economic development, public safety, and beyond, touching every part of our society and economy including the most vulnerable and those who support and care for them. 

What does the FMAP crisis have to do with business leadership? Business leaders generally understand that they have an enormous interest in seeing their state's core functions - social services, infrastructure maintenance and healthcare systems to name three - are operating at their very best capacity. The cuts that will result if FMAP is delayed would put that reliability at risk along with potentially thousands of jobs. The ripple effect would reach employees, customers and partners almost immediately.

Individual business leaders - CEOs, senior executives, major investors, entrepreneurs - all have enormous influence in our society. Critical moments like this one are important times to use it. 


Your United States Senator will listen if you call and write to say that your business depends on continuity in essential state services and this basic federal funding package simply has to get authorized and distributed immediately as planned or people will suffer and business will be negatively impacted at an already fragile time.


How about some examples? Here is a letter sent by Communispace CEO Diane Hessan to Senator Scott Brown, and here is one written by eScription Founder and former CEO Paul Egerman. Send us your letters and we will post them here as well.

Regardless of where you vote or operate your business, call your Senators and urge them to pass the Senate Substitute Amendment which restores language extending FMAP rates in H.R. 4213. The US Capitol number is (202) 224-3121. All the information you need to make your call easy is here courtesy of the Providers' Council, a network of social service providers who deeply understand this urgency.

For those of you in Massachusetts: Senator John Kerry has said he supports getting the FMAP funds released. Call to thank him for his support.

Senator Scott Brown has not made his position clear yet (PBLN's letter to Senator Brown is right here). Call to ask him to get the FMAP funds released for Massachusetts families and businesses.

Please take a moment to contact both of them immediately. 

If business leaders rise to this challenge, it will make all the difference. 

Member Spotlight

Diane Hessan, President & CEO - Communispace
According to Advertising Age Communispace is one of the fastest growing marketing and technology companies in the country, with a Blue Chip client list that would make a Madison Avenue giant jealous. A pioneer in creating online communities to help marketers deeply engage customers, Diane helped found Communispace in 1999 and hasn't looked back.