WASHINGTON (AP) — The top Republican on the House Oversight committee on Thursday challenged Louisiana officials about what the state is doing to financially help itself and asked whether the state is becoming a "permanent ward of the federal government" in the wake of Hurricane Katrina.
Rep. Darrell Issa noted Louisiana's top income tax rate is 6 percent compared with 10.5 percent in his home state of California. He said California taxpayers deserve to know what Louisiana is doing to generate other revenue.
"Are you going to be a permanent ward of the federal government?" he asked Louisiana health-care leaders at a hearing on Capitol Hill. "What are you doing besides coming to us?"
Alan Levine, health secretary under Republican Gov. Bobby Jindal, said the state is facing unprecedented challenges, particularly from a looming cut in federal matching funds for its Medicaid program. Louisiana officials say the huge infusion of recovery funding in recent years has skewed the federal matching rate for Medicaid so that Louisiana will see a historic drop in funding next year. The change could lead to a nearly $1 billion shortfall, possibly pushing the program into insolvency, Levine said.
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