A new report warns that failure to extend higher matching rates for Medicaid could be a blow to the financial recovery for many state budgets.

States received higher matching rates for Medicaid starting last year as a part of the federal stimulus. But that higher rate is scheduled to expire at the end of this year unless Congress acts. The National Conference of State Legislatures on Tuesday released a budget update that shows there could be budget gaps in 25 states if Congress lets the higher matching rate expire. Congress has been split over the extension because it would add to an already growing federal budget deficit.

The NCSL budget survey says if the higher matching rate ends it could create a budget gap of at least $12 billion nationwide.

“States are in a tenuous fiscal position, teetering between delicate revenue improvement and the end of the federal stimulus funds,’’ said Corina Eckl, the fiscal program director. Eckl said the failure of Congress to act could be “another blow to the state’s fragile fiscal recovery.”

The report, however, does not include any data for Florida. Florida appears to be the only state that did not give any information to NCSL, while some other states did not provide complete information because they had not finished work on their budgets for the 2010-11 fiscal year.

Jill Chamberlin, a spokeswoman for House Speaker Larry Cretul, said that a decision was made to not provide information this summer because of the timing of the request. She said that Florida's fiscal situation moving forward is uncertain because of the economy and the potential impact from the oil spill.

Under the enhanced funding in place Florida was receiving just under 68 cents for every dollar spend on the Medicaid program. Without the additional dollars the state will receive about 55 cents for every dollar it spends on Medicaid.

Florida will lose about $1 billion in increased funding due to the loss of the higher Medicaid matching rate. Gov. Charlie Crist had advocated using the higher matching rate to help build his budget for this fiscal year, but in the end legislators agreed to put only $270 million in the budget and even that was contingent on Congress passing the extension.

The NCSL report also warns that while some states expect some revenue gaps in the coming year many of them still forecast budget gaps.