| State Budget Mess: It Just Gets Worse and Worse |
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During a budget meeting in the House Wednesday, experts from the Health and Human Services Cabinet described a very disturbing future for their services to the people of Kentucky.
These Cabinet officials told lawmakers that cuts proposed by Gov. Steve Beshear would lead to fewer Meals on Wheels and elimination of programs at the state’s 14 community mental health centers.
Cuts to Medicaid, the program that offers health benefits to 722,000 poor and disabled Kentuckians, are also on the table for possible major cuts if the cabinet cannot reduce Medicaid costs by $365 million over two years.
John Bart, Commissioner of the Department for Mental Health and Mental Retardation Services testified that, “Finding ways to tighten our belt without reducing services would be very difficult.”
The Cabinet officials also testified that some mental health services would be greatly reduced or eliminated. To further complicate the issue, Cabinet officials also indicated that these programs and services would be the first wave of their budget containment.
They also stressed that because of these drastic budget cuts, federal intergovernmental contracts and program administration matching funding regulations could jeopardize the state’s ability to maintain state and federal licensing requirements at its residential facilities.
Medicaid -- despite an increase of $166.4 million in general fund money over the next two years -- faces a $365 million shortfall, about a third of which will have to be funded from the state's General Fund.
The Cabinet officials said that as a first priority, they would try to eliminate the shortfall through better program administration oversight and cost containment. Under questioning they admitted that if this approach does not work then Medicaid would also face cuts.
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