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Budget Shortfall Due to Medicaid Spending

| January 15, 2014

Budget

AUGUSTA, Maine (AP) – Maine’s finance chief says more than 90 percent of the roughly $119 million shortfall in the state’s budget identified by Republican Gov. Paul LePage’s administration is caused by Medicaid spending.
Department of Administrative and Financial Services Commissioner Sawin Millett told reporters Tuesday that about $108 million of the gap is a shortfall in the Medicaid, or MaineCare, program.

Millett is expected to brief Maine’s Appropriations Committee on the budget Wednesday.

He says the Medicaid shortfall is smaller than it’s been in past years and is caused by increased use of things like residential services and hospital outpatient care by MaineCare patients, as well as the failure of some savings initiatives to meet their targets.

Other departments facing a shortfall include the Department of Education and the Department of Corrections.

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