Budget Update: more interim budget cuts, calls for long term fix, Medicaid deficit due to temporary issues
In response to a growing budget shortfall for this year, last week the Governor ordered $31.5 million in budget rescissions. This is the Governor’s second round of cuts for this fiscal year. Health-related cuts included $8.4 m from DDS, $1.3 m from DMHAS, $602,435 from school-based health clinics, $71,515 from Healthy Start, and $1.3m from UConn Health Center. Republican leaders are concerned that continuing rescissions are keeping the deficit just under the statutory level requiring a deficit mitigation plan be submitted to the legislature.
All the issues adding to the shortfall will be resolved soon and should not precipitate calls that Medicaid spending is “out of control”. Because of quality and value improvements in the program, per person spending in the program is stable, saving about $150m in state Medicaid funds compared toper person health cost increases for all Americans