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Senate Committee Rejects Governor's Medicaid Fix

Kentucky State Capitol
Wikimedia Commons
Kentucky State Capitol

By Associated Press

Frankfort, KY – A Senate committee has rejected a proposal by Governor Steve Beshear that would have balanced the state's Medicaid budget by using money now that had been intended for next year's costs. The Senate Appropriations and Revenue Committee voted Tuesday evening to revamp Beshear's proposal so that a $166.5 million shortfall in the Medicaid program would be made up with across-the-board cuts to other government programs, including education. Beshear had called for a simple solution, shifting $166.5 million that would have been used next fiscal year to cover this year's costs. He also called for carving out additional savings next year to make up for the transfer by contracting with private firms to provide some Medicaid services.