GOP Governors Engage Super Committee

Leadership of the Republican Governors Association sent a letter today to the co-chairs of the super committee, indentifying areas where the federal government can partner with the states to save money; underscoring ideas that should be off-limits; and highlighting areas of agreement and disagreement between Republican and Democratic governors.

RGA Policy Chairman Haley Barbour will discuss the letter and other recommendations with American Action Forum President Douglas Holtz-Eakin at the National Press Club at 10:00 a.m. tomorrow, Tuesday, October 25. More details on the press event are at the end of this release.

“Republican governors understand that the only way to solve our nation’s long-term debt problem is by tackling entitlements, including Medicaid, and we are eager to partner with the federal government to make Medicaid sustainable,” said RGA Chairman Bob McDonnell. “While we know tough choices are necessary to solve the fiscal crisis, tax increases should not be an option. In fact, the last thing this economy and the American people need are for taxes to go up.”

“Democrat governors have urged the super committee to consider tax increases as part of the debt reduction package. Republican governors could not disagree more. We simply can’t tax our way out of a spending problem, and in this weak economy, a tax increase would make job creation even more difficult,” said RGA Policy Chairman Haley Barbour. “Democrat governors have also balked at approaches to Medicaid that encourage innovation and efficiencies at the state level, but the truth is that flexible policies that hold states accountable have worked in other health care programs, like S-Chip. Republican governors believe a similar approach must be part of any serious discussion about Medicaid reform.”

Specifically, the governors:

• Referred the super committee to the 31 ideas for saving and reforming Medicaid highlighted in a report that Republican governors released on August 30.

• Opposed cost shifting as a way for the federal government to reduce Medicaid spending, including introducing a new “blended rate” for FMAP or reducing provider fees collected by states.

• Urged reform of federal programs such as the dozens of workforce training programs in order to save on administrative costs.

• Strongly opposed any tax increases.

Key areas of disagreement between GOP and Democrat Governors:

• Taxes: Democrats support increasing taxes. Republicans oppose.

• Block grants and/or capped allotments outside of a waiver: Democrats oppose. Republicans support flexible, accountable financing mechanisms that hold states accountable.

Key areas of agreement between GOP and Democrat Governors:

• Cost shifting proposals like “blended rates” should not be considered.

• Reform how “dual-eligibles” are served so that any cost-savings are shared between states and the federal government.

Press Event Details

WHAT:          A Conversation with RGA Policy Chairman Haley Barbour

WHEN:          Tuesday, October 25 from 10 a.m. – 11 a.m.

WHERE:       National Press Club, Lisagor Room

Washington, DC

RSVP:            To confirm attendance at this event, email pressrsvp@americanactionnetwork.org with the name of the reporter and outlet.

Live stream:   Click here.

Agenda:

10:00 a.m.       Doors open and continental breakfast is served

10:10 a.m.       Welcome and Introduction: Fred Malek, Chairman, American Action Forum

10:15 a.m.       Discussion of domestic policy with Governor Haley Barbour (R-MS)

Moderated by Douglas Holtz-Eakin, President, American Action Forum

10:40 a.m.       Closing remarks: Fred Malek

10:42 a.m.       Press Gaggle with Governor Barbour

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