[Congressional Record Volume 149, Number 18 (Friday, January 31, 2003)]
[Extensions of Remarks]
[Page E120]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCING THE S-CHIP ALLOTMENT EXTENSION AVAILABILITY ACT OF 2003

                                 ______
                                 

                            HON. GENE GREEN

                                of texas

                    in the house of representatives

                        Friday, January 31, 2003

  Mr. GREEN of Texas. Mr. Speaker, I rise today to introduce 
legislation that is vitally important to ensure that states can provide 
quality health care to uninsured children.
  On October 1st of last year, states with unspent federal funding 
allocation were forced to return those amounts back to the U.S. 
Treasury. These funds are from the early years of the CHIP program, and 
were unspent because it took many states several years to develop and 
implement their CHIP programs.
  Unfortunately, we are cutting these funds at a time when they will be 
needed most. Under the Balanced Budget Act, CHIP funding was reduced by 
$1 billion, or 26 percent in fiscal year 2002, and is slated to remain 
at this reduced level until fiscal year 2004. States that had been able 
to draw on unspent funds in order to avert cutbacks will now have to 
start eliminating services. As a result of this problem, the Office of 
Management and Budget estimates that 900,000 children will lose their 
CHIP coverage.
  This is a particular problem in my home state of Texas. Even though 
Texas has enrolled and provides coverage to over 500,000 children, the 
state was forced to return $285 million at the end of fiscal year 2002. 
This is especially problematic, as the state is facing a budget 
shortfall of approximately $5 billion.
  The legislation I am introducing would restore $1.2 billion in 
unspent funds under the State Children's Health Insurance Program 
(CHIP). This is a necessary move to ensure that our children have 
access to the health care they need. I hope my colleagues will join me 
in supporting this bill.