2/7/13 - Gov. Snyder is asking Michigan lawmakers to raise the gas tax, expand Medicaid to more uninsured and put more money into early childhood education. The Republican governor today unveiled his proposed $50.9 billion budget to lawmakers who sit on budget committees. A major piece includes a call to raise the state gasoline tax from 19 cents a gallon to 33 cents and increase vehicle registration fees to fix ailing roads and bridges. Snyder says doing nothing will cost Michigan more down the line. A typical family would pay $120 more per car each year if the changes go into effect. Snyder argues that not extending Medicaid would harm people who are too poor to qualify for taxpayer-subsidized health insurance offered through online exchanges. Snyder says heâs in favor of the expansion under the Obama administration's health care overhaul. The federal health care law gives states the option to accept the expansion, refuse it or postpone a decision. However, Snyder is likely to run into resistance from Republican lawmakers opposed to the health law. They believe federal officials could renege. But there are benefits for states that choose to expand Medicaid. The federal government will pick up the entire cost in the first three years and 90 percent over the long haul. Doug Paterson is the director of state policy for the Michigan Primary Care Association, which represents 35 community health clinics. He says Medicaid expansion would vastly improve health coverage in the state. "Thirty-three percent of the people we serve have no insurance. So, you can imagine that if many of these people become Medicaid eligible and we had new source of revenue to cover a lot of those people, we could expand the amount of services that could be given to the population." Snyder said more than $20 billion will come into Michigan through 2023 by leveraging federal funds made available through the Affordable Care Act, and that the state's General Fund will see $1.2 billion in savings through 2020. But Michigan House Speaker Jase Bolger, a Republican, said in a statement he remained "cautious and concerned" on behalf of taxpayers regarding the Medicaid expansion. (JK)
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