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mentioned in there (the meeting) is on the table.” He also mentioned possible changes in Medicaid that may include a tax on health-care providers.
Gov. Wilder said that Medicaid requires $300 million in new funding in the budget—a figure that exceeds the amount of money raised by the state’s sluggish 1 percent growth.
The governor also raised the high cost of providing mental health services and corrections as areas the state might wish to cut.
State Secretary of Finance Paul Timmereck has said budget forecasts show a two-year shortfall in revenues that may reach $1.6 billion if employee raises are factored in. In response. Gov. Wilder has asked that all state agencies prepare plans to cut up to 9 percent from their budgets. The heavier cuts are likely. Gov. Wilder hinted, and will not be offset by any raises for state employees.
Director of Planning and Budget Karen Washabau said her department is still reviewing those plans and has not signed off on them. Some cuts, she told the committees, are consistent throughout the plans, including reducing the amount of money state agencies send to local governments—a plan that would affect social services and courts the most.
Ms. Washabau also noted that
89.6%