Breaking News: Kentucky House Adopts Senate Medicaid Fix -- On Condition Steve Beshear Will Veto Budget Cuts Called For In Senate Bill!
House passes Senate budget fix after Beshear promises to veto spending cuts
By Beth Musgrave
FRANKFORT — The Kentucky House voted 86-1 Thursday evening to agree with a Senate plan that fixes a hole in the Medicaid budget by cutting $101 million from other parts of state government, but only after Gov. Steve Beshear assured Democrats he will veto portions of the bill.
House leaders said the unusual move was necessary to avoid dramatic cuts to Medicaid providers set to go into effect on April 1.
But before the bill can reach the governor’s desk, Senate Republican President David Williams, R-Burkesville, must sign the legislation. It wasn’t immediately clear if he will sign the bill knowing that Beshear intends to use his line-item veto power.
If the House adjourns the special legislative session tonight, the legislature would not be able to override a gubernatorial veto.
Senate Majority Leader Rocky Adkins read a letter from Beshear that pledged not to allow cuts to education spending. In the letter, Beshear said he would still make spending cuts in the upcoming fiscal year that were included in the two-year budget that lawmakers passed last summer. Those cuts include $81 million across state agencies and an additional $169 million in unspecified efficiencies.
“I believe that the final product will not include any cuts to education,” said House Budget Chairman Rick Rand, D-Bedford.
Rep. Stan Lee, R-Lexington, said members of the House should only vote for the Senate’s plan if they honestly agree with it, not based on the promise that the bill “will get a haircut” from Beshear.
“Let’s not do it as a sham,” Lee said
Earlier on Thursday, the Senate approved a Medicaid budget fix that included $101 million in cuts across much of state government. The plans calls for 0.355 percent cuts in the remaining part of the current fiscal year and 1.74 percent in the second year, which begins July 1.
If Beshear can generate $114 million in Medicaid savings, cuts to education would not take place. If those savings could not be documented, then the main funding formula for schools will be cut 0.812 percent and higher education would be cut 1.74 percent. Those cuts would go into effect in January.
The General Assembly would have to vote to rescind the cuts in January if the savings materialized.
The House plan, passed on Monday, gave Beshear until Aug. 15 to document savings in the Medicaid program. If those savings did not materialize, then the administration would have to make cuts to areas other than education by Oct. 1.
House Speaker Greg Stumbo said during a floor debate that the House and Senate are far apart in philosophy regarding the Medicaid budget.
“That doesn’t mean that any one is right or wrong,” Stumbo said. “The problem is that we have a time deadline.”
Beshear has said that if the legislature fails to come to an agreement, he will have to cut Medicaid providers by 35 percent to shore up the Medicaid budget beginning April 1.
That’s only six days away.
Health care providers say they will likely have to lay off employees, close or leave the Medicaid program if their reimbursement payments are reduced by 35 percent.
“I can’t afford to take that chance,” Stumbo said.
By Beth Musgrave
FRANKFORT — The Kentucky House voted 86-1 Thursday evening to agree with a Senate plan that fixes a hole in the Medicaid budget by cutting $101 million from other parts of state government, but only after Gov. Steve Beshear assured Democrats he will veto portions of the bill.
House leaders said the unusual move was necessary to avoid dramatic cuts to Medicaid providers set to go into effect on April 1.
But before the bill can reach the governor’s desk, Senate Republican President David Williams, R-Burkesville, must sign the legislation. It wasn’t immediately clear if he will sign the bill knowing that Beshear intends to use his line-item veto power.
If the House adjourns the special legislative session tonight, the legislature would not be able to override a gubernatorial veto.
Senate Majority Leader Rocky Adkins read a letter from Beshear that pledged not to allow cuts to education spending. In the letter, Beshear said he would still make spending cuts in the upcoming fiscal year that were included in the two-year budget that lawmakers passed last summer. Those cuts include $81 million across state agencies and an additional $169 million in unspecified efficiencies.
“I believe that the final product will not include any cuts to education,” said House Budget Chairman Rick Rand, D-Bedford.
Rep. Stan Lee, R-Lexington, said members of the House should only vote for the Senate’s plan if they honestly agree with it, not based on the promise that the bill “will get a haircut” from Beshear.
“Let’s not do it as a sham,” Lee said
Earlier on Thursday, the Senate approved a Medicaid budget fix that included $101 million in cuts across much of state government. The plans calls for 0.355 percent cuts in the remaining part of the current fiscal year and 1.74 percent in the second year, which begins July 1.
If Beshear can generate $114 million in Medicaid savings, cuts to education would not take place. If those savings could not be documented, then the main funding formula for schools will be cut 0.812 percent and higher education would be cut 1.74 percent. Those cuts would go into effect in January.
The General Assembly would have to vote to rescind the cuts in January if the savings materialized.
The House plan, passed on Monday, gave Beshear until Aug. 15 to document savings in the Medicaid program. If those savings did not materialize, then the administration would have to make cuts to areas other than education by Oct. 1.
House Speaker Greg Stumbo said during a floor debate that the House and Senate are far apart in philosophy regarding the Medicaid budget.
“That doesn’t mean that any one is right or wrong,” Stumbo said. “The problem is that we have a time deadline.”
Beshear has said that if the legislature fails to come to an agreement, he will have to cut Medicaid providers by 35 percent to shore up the Medicaid budget beginning April 1.
That’s only six days away.
Health care providers say they will likely have to lay off employees, close or leave the Medicaid program if their reimbursement payments are reduced by 35 percent.
“I can’t afford to take that chance,” Stumbo said.
Labels: Kentucky politics
posted by KYJurisDoctor at 7:11 PM
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