Wisconsin to get $365 million in aid for teachers, health programs

[undeterred]

Madison — The U.S. House on Tuesday passed and President Barack Obama signed a bill that will provide states with $26 billion for teachers and health care programs, helping ease Wisconsin's budget deficit and allowing school districts here to hire an estimated 3,000 teachers. The move would erase about $647 million of an $850 million shortfall in Wisconsin's budget for BadgerCare Plus and other Medicaid programs that provide health care for the poor, disabled and elderly.

Democrats said it was essential to help the needy and protect schools that have had to lay off teachers because of the recession. But Republicans called the bill a giveaway to teachers' unions and an example of wasteful spending that voters will punish the Democrats for in this fall's elections. The legislation was approved mainly along party lines by a vote of 247-161. Wisconsin's delegation split along party affiliation. The aid for the states is to be paid for mostly by closing a tax loophole used by multinational corporations and by reducing food stamp benefits for the poor. "The education jobs funds that the House passed today are essential to reinstating laid-off teachers and hiring more teachers to fill critical openings in our schools before the new school year," Democratic Gov. Jim Doyle said in a statement. "The House also passed Medicaid funding that will help alleviate severe stress on our balanced state budget as a result of increased demand in Medicaid."

The legislation provides $10 billion to school districts to rehire laid-off teachers or to ensure that more teachers won't be let go before the new school year begins. The Education Department estimates that could save 161,000 jobs. An additional $16 billion would extend for six months increased Medicaid payments to the states - money that Democrats said was necessary because more people are getting their health care from states in the midst of the recession.

The bill would provide an estimated $365 million for Wisconsin - $185 million for Medicaid programs and $180 million for preventing teacher layoffs. The effect on the state budget is even bigger than that, however, because without the federal help the state would have had to make cuts that would have triggered the loss of additional federal matching money. Even with the congressional help, the state budget is under stress.

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