Fact Sheet

Perfect Storm Awaits Louisiana Medicaid Funding

Healthcare /

In a letter to Louisiana’s nine-member Congressional delegation, the Louisiana Budget Project (LBP) and its parent organization, the Louisiana Association of Nonprofit Organizations (LANO), warn a combination of economic and legislative conditions is set to decimate the safety net for Louisiana’s most vulnerable populations.

According to the LBP and LANO, Louisiana will lose an estimated $1.3 billion in federal Medicaid funding in state fiscal years 2011 and 2012, with an on-going, annualized reduction of $900 million.

But time is critical and Congress needs to act now. Louisiana’s budget for fiscal year 2011 is being drafted now and will be finalized in February 2010 for presenting to the Legislature in March.

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The governor's plan will mainly benefit corporations and the wealthy, while working and middle-class families will pay more for services and products we use every day such as diapers, garbage collection, haircuts and home repairs. Louisiana’s tax system certainly needs to be improved, but this is the wrong way to do it.
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Gov. Jeff Landry has called the Legislature into a special session to overhaul Louisiana’s tax structure.