Kentucky House Passes "Compromise" Medicaid Budget, David Williams And The Senate Have Final Say. Stay Tuned.
Kentucky House approves bill to fix Medicaid budget
By Beth Musgrave and Jack Brammer
FRANKFORT — The Kentucky House overwhelmingly approved a bill to plug a $139 million shortfall in the state Medicaid budget Monday evening and sent it to the Republican-led Senate, where its fate remains unclear.
The plan transfers $166 million from next year’s Medicaid budget to this year’s and provides for “triggered cuts” if Democratic Gov. Steve Beshear cannot realize savings from privately-run managed care programs for Medicaid patients, said House Minority Leader Jeff Hoover, R-Jamestown. Most education programs, including public universities and the main funding formula for K-12 education, would be exempt from spending cuts, he said.
Senate Majority Leader Robert Stivers, R-Manchester, noted the proposal’s speedy flight through the House. The-94 to-4 vote in the House came less than an hour after the House budget committee unanimously approved the plan, which House Democratic and Republican leaders presented to their party caucuses for the first time Monday afternoon.
“It got passed quicker than Sherman went through Georgia,” Stivers said. “As to the substance of the compromise, we have not seen it.”
Gov. Steve Beshear said in a statement that he still thinks his proposal to fix the Medicaid budget is better, but he is “glad to see that they (House members) agree with me that we should not balance the Medicaid budget on the backs of our schoolchildren and college students.”
“This is obviously still a work in progress, and we’ll see where it goes from here,” he said.
House Bill 1 enjoyed bipartisan support in the House after Democratic and Republican leaders worked for more than a week to hammer out an agreement.
Under the proposal, Beshear would have to certify by August 15 the amount he can save within Medicaid in the fiscal year that begins July 1. House Bill also would let Beshear use approximately $23 million in one-time money to offset any shortfall if there are no savings in the Medicaid budget.
Anything short of the remaining $116 million needed to balance the Medicaid budget would trigger cuts in most other parts of state government, beginning October 1, said House Speaker Greg Stumbo, D-Prestonsburg.
Areas of state government that would be exempt from cuts include: vocational rehabilitation, the main funding formula for K-12 education, all public universities and the teachers’ retirement system. However, cuts would apply to the Council on Postsecondary Education and the Department of Education, which oversee and coordinate education in Kentucky.
The magnitude of the cuts would depend on the size of the shortfall, Stumbo said. Hoover estimated a $23 million shortfall would amount to about a 1 percent cut.
Stumbo and House Democrats said they are confident Beshear can generate the necessary savings by launching a series of managed care programs in the $6.5 billion Medicaid program next fiscal year. But Senate Republicans have said they do not believe Beshear can generate savings in the Medicaid program and have previously advocated for across-the-board spending cuts.
House Bill 1 also restricts the amount of debt restructuring the governor can do next year. Beshear restructured $67 million more in debt than the legislature allowed him this fiscal year, which ends June 30.
The bill also restricts Beshear from furloughing state employees next fiscal year until he generates most of the promised savings.
Most state workers were furloughed six days this fiscal year to generate about $24 million in savings. Senate Republicans have said Beshear furloughed state employees this year before generating long-term savings in other areas of government.
The new plan also states that any excess revenue must be placed in the state’s “rainy day” fund and cannot be spent without approval of the legislature, Stumbo said.
During debate on the House floor, Rep. Jim DeCesare, R-Bowling Green, expressed concern that the bill was being voted on too quickly and that members had not had an opportunity to study the 14-page bill.
Rep. Stan Lee, R-Lexington, said he doesn’t think House Bill 1 does enough to cut state government and reduce the debt.
“I’m worried that we’re just kicking the can down the road,” Lee said.
Voting against the bill were Lee, DeCesare, Rep. Joe Fischer, R-Ft. Thomas, and Rep. Thomas Kerr, R-Taylor Mill.
If the Senate accepts the House plan, lawmakers may be able to adjourn the special session, now in its eighth day at a cost of $63,500 a day to taxpayers, on Wednesday, Hoover said.
Senate President David Williams, R-Burkesville, said the Senate wants to end the special session as soon as possible but noted that he has not yet seen the House plan.
But even if the Senate approves the plan, there may be questions about its constitutionality.
Beshear called the special session after this year’s regular session ended abruptly March 9 without resolving the Medicaid problem. In his order recalling the legislature, Beshear said the legislature can only solve the shortfall from within the Medicaid budget. House Bill 1 calls for cuts to other agencies if the savings are not generated in Medicaid.
Stumbo acknowledged taht Beshear may have to alter the wording of his special session call if the Senate and the House agree to the budget fix as proposed in House Bill 1.
“The governor can amend the call at any time before the legislation becomes final,” Stumbo said.
Kerri Richardson, a spokeswoman for Beshear, said it was too early to say whether Beshear would alter his order to make sure the budget would withstand a possible court challenge.
By Beth Musgrave and Jack Brammer
FRANKFORT — The Kentucky House overwhelmingly approved a bill to plug a $139 million shortfall in the state Medicaid budget Monday evening and sent it to the Republican-led Senate, where its fate remains unclear.
The plan transfers $166 million from next year’s Medicaid budget to this year’s and provides for “triggered cuts” if Democratic Gov. Steve Beshear cannot realize savings from privately-run managed care programs for Medicaid patients, said House Minority Leader Jeff Hoover, R-Jamestown. Most education programs, including public universities and the main funding formula for K-12 education, would be exempt from spending cuts, he said.
Senate Majority Leader Robert Stivers, R-Manchester, noted the proposal’s speedy flight through the House. The-94 to-4 vote in the House came less than an hour after the House budget committee unanimously approved the plan, which House Democratic and Republican leaders presented to their party caucuses for the first time Monday afternoon.
“It got passed quicker than Sherman went through Georgia,” Stivers said. “As to the substance of the compromise, we have not seen it.”
Gov. Steve Beshear said in a statement that he still thinks his proposal to fix the Medicaid budget is better, but he is “glad to see that they (House members) agree with me that we should not balance the Medicaid budget on the backs of our schoolchildren and college students.”
“This is obviously still a work in progress, and we’ll see where it goes from here,” he said.
House Bill 1 enjoyed bipartisan support in the House after Democratic and Republican leaders worked for more than a week to hammer out an agreement.
Under the proposal, Beshear would have to certify by August 15 the amount he can save within Medicaid in the fiscal year that begins July 1. House Bill also would let Beshear use approximately $23 million in one-time money to offset any shortfall if there are no savings in the Medicaid budget.
Anything short of the remaining $116 million needed to balance the Medicaid budget would trigger cuts in most other parts of state government, beginning October 1, said House Speaker Greg Stumbo, D-Prestonsburg.
Areas of state government that would be exempt from cuts include: vocational rehabilitation, the main funding formula for K-12 education, all public universities and the teachers’ retirement system. However, cuts would apply to the Council on Postsecondary Education and the Department of Education, which oversee and coordinate education in Kentucky.
The magnitude of the cuts would depend on the size of the shortfall, Stumbo said. Hoover estimated a $23 million shortfall would amount to about a 1 percent cut.
Stumbo and House Democrats said they are confident Beshear can generate the necessary savings by launching a series of managed care programs in the $6.5 billion Medicaid program next fiscal year. But Senate Republicans have said they do not believe Beshear can generate savings in the Medicaid program and have previously advocated for across-the-board spending cuts.
House Bill 1 also restricts the amount of debt restructuring the governor can do next year. Beshear restructured $67 million more in debt than the legislature allowed him this fiscal year, which ends June 30.
The bill also restricts Beshear from furloughing state employees next fiscal year until he generates most of the promised savings.
Most state workers were furloughed six days this fiscal year to generate about $24 million in savings. Senate Republicans have said Beshear furloughed state employees this year before generating long-term savings in other areas of government.
The new plan also states that any excess revenue must be placed in the state’s “rainy day” fund and cannot be spent without approval of the legislature, Stumbo said.
During debate on the House floor, Rep. Jim DeCesare, R-Bowling Green, expressed concern that the bill was being voted on too quickly and that members had not had an opportunity to study the 14-page bill.
Rep. Stan Lee, R-Lexington, said he doesn’t think House Bill 1 does enough to cut state government and reduce the debt.
“I’m worried that we’re just kicking the can down the road,” Lee said.
Voting against the bill were Lee, DeCesare, Rep. Joe Fischer, R-Ft. Thomas, and Rep. Thomas Kerr, R-Taylor Mill.
If the Senate accepts the House plan, lawmakers may be able to adjourn the special session, now in its eighth day at a cost of $63,500 a day to taxpayers, on Wednesday, Hoover said.
Senate President David Williams, R-Burkesville, said the Senate wants to end the special session as soon as possible but noted that he has not yet seen the House plan.
But even if the Senate approves the plan, there may be questions about its constitutionality.
Beshear called the special session after this year’s regular session ended abruptly March 9 without resolving the Medicaid problem. In his order recalling the legislature, Beshear said the legislature can only solve the shortfall from within the Medicaid budget. House Bill 1 calls for cuts to other agencies if the savings are not generated in Medicaid.
Stumbo acknowledged taht Beshear may have to alter the wording of his special session call if the Senate and the House agree to the budget fix as proposed in House Bill 1.
“The governor can amend the call at any time before the legislation becomes final,” Stumbo said.
Kerri Richardson, a spokeswoman for Beshear, said it was too early to say whether Beshear would alter his order to make sure the budget would withstand a possible court challenge.
Labels: Democratism, Kentucky politics, Republicanism
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