STATEMENT OF THE GOVERNOR ON PRESIDENTIAL VETO

TRENTON - Governor Jon S. Corzine today made the following statement regarding President Bush's veto of legislation to renew and expand the State Children's Health Insurance Program (SCHIP). Last month, the reauthorization legislation passed both the Senate, 67-29, and the House of Representatives, 265-159, with strong bipartisan majorities. Congress has passed a Continuing Resolution to keep the program operating at last year's funding level until November 16.

"Once again, President Bush has missed an opportunity to display compassionate leadership. Instead, he has resorted to political and ideological gamesmanship rather than seek a bipartisan solution that would protect this nation's most vulnerable children.

"The stakes in New Jersey are high, our successful Family Care program has 124,000 children and 80,000 parents whose coverage is in jeopardy. If the program is not reauthorized, these children and their families might lose their coverage or alternatively New Jersey taxpayers will be forced to pick up the tab.

"While the President continues to advocate an ideological and harsh policy of reducing coverage of children, we will do everything we can to preserve the bipartisan Family Care program.

"President Franklin D. Roosevelt once said, "The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." The impact of this veto action sorely impedes progress made by individual states in addressing the burgeoning problems faced by the thousands of uninsured families struggling to make ends meet.

"I commend the bipartisan effort of our New Jersey delegation who voted to renew SCHIP. And I urge Congress to overturn this devastating veto and fully reauthorize the State Children's Health Insurance Program. The future of our nation is in these very children we seek to safeguard."

Earlier this week, Governor Corzine also filed a lawsuit on behalf of the people of New Jersey challenging the letter issued by the Bush Administration limiting eligibility to SCHIP. The lawsuit accuses the Bush Administration of circumventing the public rule-making process by fundamentally and arbitrarily changing the program via letter, which would have the effect of denying health insurance coverage for over 10,000 New Jersey children.

In the August 17 letter, the Bush Administration informed states they would no longer receive reimbursements for children in families over 250 percent of the federal poverty level unless they meet onerous and unattainable conditions. New Jersey has one of the most aggressive enrollment programs in the country and, having secured multiple waivers from the federal government, including one as recently as last year from the Bush Administration, currently covers children in families up to 350 percent of poverty. If the directive were to take effect unchallenged, 10,700 New Jersey children would be impacted immediately and 15,000 - 20,000 more who are currently eligible would be turned away.

The Bush Administration's directive also sought to impose unreasonable and harsh restraints on state programs, including a 1 year "crowd out provision" which would require children to wait an entire year without coverage before becoming eligible for SCHIP. Currently, New Jersey only requires that a child lack health insurance for 3 months.

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