State officials today told the Senate Finance Committee that the funding formula for the State Children’s Health Insurance Program penalizes states when they cover more children because funding is based on the number of uninsured children as opposed to the number of children enrolled. Georgia Gov. Sonny Perdue and Anita Smith, an official with the Iowa Department of Human Services, called for changes to the formula so states do not lose money for effective SCHIP programs. Perdue said governors value flexibility in the program but would embrace standards if funding were more predictable. He said the National Governors Association has been working on such standards and could “fine-tune” them quickly for the committee’s consideration. The hearing was on the future of SCHIP, which will expire this year and is slated for reauthorization by Congress.