As part of the Bush tax cut, the state could see monetary assistance.

AUGUSTA (AP) – Maine stands to gain $131 million in state aid as part of the $330 billion tax cut approved by Congress, according to an analysis by the National Conference of State Legislatures.

Congress gave final approval Friday to $330 billion in tax cuts for families, investors and businesses. President Bush was poised to sign the bill, which included $20 billion in aid for cash-hungry states.

The analysis released Thursday found that about half the money to Maine would be from increased Medicaid payments. The remainder, to be sent in the next year and a half, could be used as the state sees fit.

The new Medicaid money would boost Gov. John Baldacci’s health reform plan, which relies on Medicaid funds to help pay the health insurance for the uninsured.

The formula for releasing the aid to individual states favors Maine because it is based on population and on the amount of Medicaid money each state receives. Because Maine has a relatively high percentage of older, poorer residents, it gets more Medicaid money per capita than most states.

Maine would receive a $25.1 million boost in Medicaid money for the current fiscal year and $40.2 million for 2004, according to the analysis.

In addition, the bill doles out $65.3 million in “flexible” money over five quarters, starting July 1. The money could be used for any general government purposes or to fill in the gaps in unfunded federal mandates.

AP-ES-05-23-03 1243EDT