Deficit grows, Medicaid revenues below expectations – Let’s hope for good news from April tax receipts

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Legislative and administrative deficit estimates for this year vary by $52.8 million, about 0.3% of the total General Fund. However that small difference may be enough to trigger another deficit mitigation plan of cuts by the Governor. However any plan for cuts wouldn’t come until May, and the legislative session ends June 3rd – it is possible that any cuts for this year would be rolled into the next biennial budget. However all this may be unnecessary if receipts of taxes on April 15th are good. So basically, no one knows what is going to happen.
An important note – while Medicaid receipts are below estimates largely due to a difference with the federal government on reimbursements, that difference is a one-time issue affecting only this fiscal year. Per person costs in the program have been stable, saving the state $210 million this year.