One of the most successful provisions included in President Obama's stimulus package increased the federal government's share of Medicaid costs, saving Illinois about $1.4 billion for FY 2009 and FY 2010 as a result. But here's the problem: The stimulus bill expires at the end of December and Congress has not taken action on a proposed six-month extension. In drawing up his FY 2011 state budget, however, Gov. Pat Quinn anticipated that the extension -- valued at about $230 million for Illinois -- would eventually pass Congress, as Voices For Illinois Children noted in their most recent fiscal analysis (PDF)
While that might sound like a dangerous gamble, Quinn is not alone. Stateline reports today that two-thirds of states nationwide have also factored in the extension when formulating their FY 2011 budgets. The National Conference of State Legislatures further noted that "19 states have no backup plan in place should Congress not come through with the money they’ve been expecting."