Senate Medicaid Plan Clears Committee

Senate Republicans still want across-the-board cuts to state agencies, including education, to balance Medicaid. But most of the education cuts wouldn’t come until January 31, 2012. And if Governor Beshear attains 82 percent of his projected savings from Medicaid managed care before then, the legislature could rescind the cuts.

In Depth: The Special Session’s First Days

Governor Steve Beshear says if lawmakers can’t reach agreement on how to close a huge deficit in this year’s Medicaid budget, he will have to cut reimbursement rates to Medicaid providers by 35% on April 1st. Steve Shannon of the Kentucky Association of Regional Mental Health Centers says if that happens, layoffs and furloughs will ensue. And right now, the centers are serving 172,000 Kentuckians with mental disabilities.

Stumbo Says Session Will Last Beyond This Week

Stumbo says the House Appropriations and Revenue committee wants to hear how budget cuts recommended by Senate Republicans will affect state agencies. “And that’s why we likely will not get through this week,” he says. “There’s been no testimony at all about what impact that will have on other agencies that have already been severely reduced over a billion dollars in spending to our state government’s functions.”