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In addition, some of the budget expenditures, such as certain welfare programs, Medicaid (for the medically indigent), and the maintenance of prisoners must be based on estimates and due primarily to rising costs and reduction in Federal matching funds, these estimates have turned out to be low.
Governor Godwin acted promptly last fall, as required by law, to reduce expenditures of the state government for most of its activities so as to bring expenditures into line with revenues. In his address to the legislature, Governor Godwin reported that he had taken action to/ reduce expenditures by approximately $40 million over the period from now until July 1, 1976, to insure a balanced budget.
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