http://www.americanprogressaction.org/site/pp.asp?c=klLWJcP7H&b=591415GUTTING PROGRAMS TO HELP THE DISABLED:
Joannne Wilson, the former commissioner of the Rehabilitation Services Administration, is sharply criticizing the White House for its efforts to "dismantle" programs to help the disabled. The RSA "provides money, technical assistance and oversight" to state agencies which help the blind, deaf, paralyzed or intellectually disabled find jobs, live independently and develop marketable skills. The program serves about 1.2 million people. According to Wilson, however, the Bush administration is gutting the office's funding and staffing. The Bush administration is also pushing states to combine RSA programs with generic job placement programs which serve both the disabled and able-bodied, a move which leaves the disabled with fewer services dedicated to helping them. Former RSA Commissioner Fredric K. Schroeder agreed that consolidating employment programs would end up hurting the disabled, saying, "The way you rehabilitate a person with a severe disability is very different than the way you help a dislocated worker return to the workforce."
MEDICAID – NEEDY GROW AS FUNDS SHRINK: With states struggling to cover record numbers of people on Medicaid and governors nationwide expressing concern about running out of money to cover the needy, "the federal government's contribution to Medicaid is shrinking – the biggest two-year drop in the program's history – because of the formula used to calculate the federal share of costs under Medicaid and a related program for needy children called the State Children's Health Insurance Program (SCHIP)." Congress is debating further cuts as deep as $25 billion to $45 billion over 10 years to Medicaid, but the formula cuts "are a sure-fire hit that will only add to the budget troubles of states already facing spiraling Medicaid costs." New Mexico, for instance, stands to lose $81 million in fiscal 2006, Alaska $80 million and Louisiana $69 million. Altogether, the changes for fiscal 2006 mean states will collect $500 million less in federal matching funds............