From The Insider (5.17.12)
Budget Plans
A budget bill may take a little longer than planned. Rep. Harold Brubaker, R-Randolph, the chief budget writer in the House, said Wednesday that plans to try to roll out a House budget bill by next week have been put on hold. Brubaker said that the House’s proposed revisions to the two-year state budget will likely instead be before budget-writing subcommittees and the full House Appropriations Committee the following week. Trying to roll out a budget bill by next week wouldn’t have allowed enough review, he said. “I think the rank-and-file members need to see their budget,” Burbaker said. “They need to be fully informed.”
The House budget-writing subcommittee on Health and Human Services did review some of Gov. Beverly Perdue’s spending proposals on Wednesday, but a separate budget subcommittee meeting was cancelled. Two House budget subcommittee are scheduled to meet today. Legislative Republicans have made clear that Perdue’s proposal to raise the sales tax by three-quarters of a cent will not be included in any budget bill. Legislative leaders also began the short session pushing the notion that, because the two-year budget does not have to be adjusted, Perdue has less leverage when it comes to vetoing a budget bill.(THE INSIDER, 5/17/12).
Medicaid Shortfall
The Senate has approved legislation designed to a close cost overruns in the state Medicaid program that could exceed $200 million. The bill, which now goes to the House, would allow up to $205.5 million to be used to close the gap, with the money coming from five sources of state funds. The five are: $105 million from state agency reversions; $50 million transferred from other unspent pools of money within the Department of Health and Human Services; $20 million from a project revenue surplus now expected to reach $233 million; $20 million from unspent money in the state building Repair and Renovation Fund; and $10.5 million from a Repair and Renovation dollars already allocated to the Department of Health and Human Services. The initial dollars are to come from the unspent pools of money already in the Department of Health and Human Services. State agency reversions fall next on the priority list of money to be used.
The legislation avoids Medicaid provider cuts called for in the budget bill passed last year. The shortfall led to several rounds of backbiting last fall between legislative leaders and Gov. Beverly Perdue’s administration. More recently, legislators and Perdue officials have been in agreement when it comes to addressing the program shortfall. Last week, State Budget Director Andy Willis said that he expected the issue would be resolved harmoniously. Willis also pointed out that previous budgets have seen even larger Medicaid shortfalls.
Sen. Pete Brunstetter, R-Forsyth, said Wednesday that the governor’s office and House leaders backed the proposal. The legislation was approved unanimously in the Senate with little debate. Some of the money will come from pools whose final amounts won’t be known until the close of the fiscal year, but Brunstetter said he had no worries about the sources to be used. The bigger worry, he said, is the final size of the Medicaid shortfall. Right now, it is projected to reach about $150 million, but could grow larger. “That’s the softer number,” Brunstetter said. “It’s just that it is a moving target.”(THE INSIDER, 5/17/12).
