After a rocky and partisan start on Sunday, February 23, the National Governors Association (NGA) on the following day approved two policy resolutions putting the organization on record on two key issues: Fiscal Relief for the States and Medicaid.

The meeting started on a note of foreboding on the 23rd when in a rare roll call vote, the Executive Committee of the NGA tabled a policy resolution calling for fiscal relief for the states. The resolution had been worked out in bipartisan staff negotiations before the meeting. Also on Sunday, it appeared a resolution on Medicaid reform would also be removed from possible consideration because of partisan divides.

A closed-door lunch meeting on Monday and lots of behind-the-scenes maneuvering by staff brought both policy resolutions back to life and to ultimate approval.

On fiscal relief, the NGA agreed to seek on a bipartisan basis in the fiscal 2004 funding cycle more Federal support in the following three areas:

• Special Education

  -- to bring Federal assistance closer to the previously promised level of 40% of total costs.

• Homeland Security

  -- to supply flexible Federal funds for homeland security activities like smallpox vaccinations, communications upgrades for police and fire, transit security, etc.

• No Child Left Behind

  -- increase Federal support for implementation of the education reform package through a combination of increased flexibility and more Federal money.

In order to get a consensus on these items, all specific dollar amounts were dropped from the resolution. However, after the meeting at which it was approved, Pennsylvania Gov. Ed Rendell (D) told reporters that the total price tag for these three items came to $21 billion. He went on to say that it would be realistic to hope for $10-12 billion of this to be approved this year.

On Medicaid, the NGA approved a general policy statement expressing their desire for more financial support and more flexibility. They also showed bipartisan agreement that the Medicare program should pick up the cost of prescription drugs for seniors who are also eligible for Medicaid. This change would require Medicare reform to go forward with a prescription drug benefit for seniors and a special provision on the so-called "dual eligibles." In order to hash out the thorny issues on Medicaid, the NGA agreed to set-up a task force of eight governors -- four from each party -- to discuss these issues with the Administration and Congress.

The task force will begin meeting early in March.