Monday, June 28, 2010

NCGA:Budget Update at 6PM-Monday

Special Thanks goes out to Mark Binker with the Greensboro News and Record for supplying us with this updated post on the budget!

Budget proofreading
UPDATE: I have re-written this post to reflect the final version of the budget cemented at 4:45 p.m. Monday afternoon. The order of FMAP cuts were rewritten, but the cuts themselves stay the same.

Update: Click here to read the FMAP cut language as it will be in the budget.

The House and Senate budget negotiators have completed their final run-through on the budget today (previously). What was really kind of a funny is they had a budget deal Saturday, but still had to figure out Monday what exactly they agreed to.

One of the last points of contention was what will happen if they don’t get the $525 million in FMAP Medicaid money. They had identified the eight items that might be cut, but memories seem to be a bit hazy on the order of operations for how it’d work.

They have since figured out (with help from Gov. Bev Perdue) that they'll make the followin eight cuts, in this order, depnding on how much money is forthcoming from the federal government:

1) Transfer from the disaster relief fund ($30 million)
2) Transfer of unclaimed lottery prize money and excess receipts. ($35 million)
3) Use of interest from all other funds. ($50 million)
4) Use of balance in General Fund Availability left over from current year ($23.5 million)
5) Reduction of Medicaid provider rates ($26.6 million)
6) Use of Funds from the Savings Reserve (rainy day) Fund ($37.3 million)
7) Reduction in retirement system contributions. ($139 million)
8) One percent management flexibility cut. ($177.5 million)
Regarding Item 8: agencies will be required to start planning for that cut and setting money aside July 1, even if they don't end up taking it.

Also noted: Negotiators gave Gov. Bev Perdue $10 million forher handheld diagnostic devices for improving instruction in early grades.

Read more on Mark Binker's blog.

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