Cedar Lake Lays Off 19, Fears More Medicaid Cuts

by scrosby on December 10, 2008

One of Kentucky’s largest providers of residential care for people with intellectual and development disabilities has cut five-percent of its staff – and hopes further cuts won’t be necessary. Officials at Cedar Lake have seen in increase in costs, a decrease in donations and are worried about the state reducing its Medicaid funding.

Cedar Lake President James Richardson says the facility gets more than 90% of its funding from Medicaid’s Supports for Community Living program. He says they haven’t seen an increase in funding since 2002, which makes sustaining care at 2008 rates difficult.

But increases in health coverage costs for employees and a decline in charitable donations has left them with a one-million dollar shortfall. Richardson is still hopeful state lawmakers won’t cut more.

“Further cuts to this population has life-threatening implications, I’m confident they’ll want to do the right thing, once they’re convinced there’s not fat that can be trimmed,” says Richardson, “and there is no fat.”

Governor Steve Beshear is in the process of cutting about $456-million out of the state’s budget – to make up for a projected revenue shortfall.

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