[Mar 15, 2007]
Georgia Gov. Sonny Perdue (R) on Tuesday announced a temporary solution to a funding shortfall for the state's SCHIP, PeachCare, that would have the state shift Medicaid funds into the program, the AP/San Francisco Chronicle reports. Perdue, Lt. Gov. Casey Cagle (R) and House Speaker Glenn Richardson (R) on Tuesday agreed to the plan, which would fund PeachCare in that manner until Congress provides additional money (McCaffrey, AP/San Francisco Chronicle, 3/13). Fourteen states this year are facing federal budgetary shortfalls for SCHIP because of inflation, higher enrollment levels and program expansions. Democratic lawmakers want to provide an additional $745 million through a bill funding the Iraq war to maintain coverage levels through the end of this fiscal year. If the government does not allocate more than its current $5 billion annual allotment for the program, 35 states will face shortfalls by 2012 and 1.5 million children could lose coverage (Kaiser Daily Health Policy Report, 3/9). Georgia officials this week halted PeachCare enrollment because of the funding shortfall (AP/San Francisco Chronicle, 3/14). Perdue said the state will continue the enrollment freeze but added that he is "confident [the issue] has reached the radar screens of both [the House and Senate] and that Congress will pass funding" (Hendrick, Atlanta Journal-Constitution, 3/14).