Newly released figures show states taxed and cut spending to close 2010 budget holes and were confronted with more shortfalls that totaled $84 billion in fiscal 2011, which began this month for most. But even as legislatures closed gaps for the year ahead, Medicaid financing emerged as yet another potential budget stress, the National Conference of State Legislatures said in the report.
The Medicaid headache lingers
An “overwhelming majority” of 29 states that are bracing for new 2011 budget gaps to emerge said the reason was stalled efforts to extend federal Medicaid relief to states that is set to expire in December, an NSCL survey found.
States have sought $25 billion from Congress to continue the relief—included in the 2009 American Recovery and Reinvestment Act—for another six months. They have not succeeded.
Budgets in 25 states include the six-month extension, the NCLS said (and as we have reported in prior blog posts).
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