WHEREAS, The Bush Administration's budget proposal cuts Medicaid sixty billion dollars over the next ten years. These cuts will cause dramatic consequences for Michigan's health care system and our economy; and

WHEREAS, Medicaid provides necessary health care for 1.5 million of Michigan's most vulnerable citizens, including families with children, persons with disabilities and the elderly. In 2004 more than 738,000 were children, just over 253,000 were people with disabilities and more than 129,000 were elderly; and

WHEREAS, Medicaid plays a vital role in Michigan's health care infrastructure. A substantial portion of Michigan's health care industry relies on Medicaid spending. Any cut in Medicaid funding will have a profound effect on the economy; and

WHEREAS, Medicaid plays a critical role in access and quality of health care. Any cuts in Medicaid may cause hospitals and nursing homes to cut critical health care services, and/or staff; thus, limiting access to much needed services and further exacerbating the shortage of nurses, nursing home workers, aides and other essential caregivers; and

WHEREAS, Cuts in Medicaid will not save money, but rather shift costs to the counties, cities, hospitals, nursing homes and doctors. The uninsured will continue to need services and as they will be unable to pay, providers will be forced to "write off" the uncompensated care, thus causing higher health care premiums, co-pays and the like; and

WHEREAS, Considering the critical condition of revenues in our public institutions any further increases in health care costs above the already steadily increasing rates, would place an excessive burden on employers and employees; and

WHEREAS, Medicaid investment provides an economic stimulus. For every dollar invested in Medicaid, it spurs economic activity, job creation and wages -- in and out of the health care sector. In 2005, every one million dollars Michigan invests in Medicaid will spur $2.6 million in new business activity and jobs; NOW THEREFORE BE IT

RESOLVED: That the MFT&SRP oppose President Bush's $60 billion cuts in Medicaid that will place an undue burden on our state's health care system and economy; and BE IT FURTHER

RESOLVED: That the MFT&SRP will continue to work with the AFT and AFL-CIO to encourage the Bush Administration to address the underlying problems of the growing ranks of the uninsured; and BE IT FINALLY

RESOLVED: That MFT&SRP urges all members to participate in activities that support Medicaid and ask congress to seek other efficiencies without compromising this vital program.