A new report by the National Governors Association and the Association of State Budget Officers shows that states will face another 
terrible fiscal situation next year. Economic growth has not risen sharply enough to offset the loss of federal stimulus dollars and greater citizen demand for services, especially healthcare.
One of the biggest problems is that "spending on Medicaid is expected to consume an increasing share of state budgets and grow much more rapidly than state revenue growth, resulting in slow or no growth in education, transportation or public safety." After federal stimulus wore off, the states increased their Medicaid spending by an average of 29 percent this year, according to the Kaiser Family Foundation. Even though about half the states have taken steps to control Medicaid costs, many budget officials believe they haven't gone far enough.
terrible fiscal situation next year. Economic growth has not risen sharply enough to offset the loss of federal stimulus dollars and greater citizen demand for services, especially healthcare.One of the biggest problems is that "spending on Medicaid is expected to consume an increasing share of state budgets and grow much more rapidly than state revenue growth, resulting in slow or no growth in education, transportation or public safety." After federal stimulus wore off, the states increased their Medicaid spending by an average of 29 percent this year, according to the Kaiser Family Foundation. Even though about half the states have taken steps to control Medicaid costs, many budget officials believe they haven't gone far enough.
Just when people thought battles between governors and their unionized
workforces were over, they can now expect them to heat up again. Unable
to spend elsewhere, governors will be forced into new conflicts with
public sector unions over layoffs, furloughs, and early retirements. In
New York, which spends more on Medicaid than Texas and Florida combined,
get ready for a war between Governor Cuomo and SEIU 1199.
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