Kaiser Daily Health Policy Report Highlights Budget Developments in Louisiana, Rhode Island
Summaries of recent news about state budget proposals in Louisiana and Rhode Island appear below.
- Louisiana: The state Legislature on Saturday approved a nearly $30 billion budget for fiscal year 2009 that maintains spending levels for most state programs and increases funding for education and health care, among other programs, the New Orleans Times-Picayune reports. Under the budget, which Gov. Bobby Jindal (R) is expected to sign into law, state general fund spending would increase by more than $1 billion, although overall spending would decline by 13% because of fewer federal hurricane funds. State Rep. Jim Fannin (D), chair of the House Appropriations Committee, said spending for the state Department of Health and Hospitals would receive an additional $747 million in FY 2009. Most of the increase would go toward the state's Medicaid program, Fannin said. The FY 2009 budget also includes $14 billion in federal funds, including funding for hurricane recovery and matching funds for health care programs. The current budget contains about $19 billion in federal funding (Moller, New Orleans Times-Picayune, 6/22).
- Rhode Island: The state House last week unanimously approved a $6.89 billion FY 2009 budget that includes cuts to programs for elderly, low-income and disabled residents, the Providence Journal reports. The proposed budget would increase the tax on medical and dental premiums paid to insurers from 1.1% to 1.4% to generate $5.6 million. The budget plan also would allow Gov. Ron Carcieri (R) to pursue a "global Medicaid waiver" from the federal government, which would give the state broad authority to reshape RIte Care programs in exchange for capping program spending for the next five years. If approved, Rhode Island would be the first state to be granted such a waiver. The budget also includes a measure that would allow the Assembly to block any proposed Medicaid changes within 30 days after being proposed by the Carcieri administration. In addition, lawmakers approved a measure that would prohibit municipal health care contracts from specifying a health insurance provider. According to the Journal, the Senate was expected to pass the budget on Thursday, after which it will be sent to Carcieri, who is not expected to veto the budget (Peoples/Needham, Providence Journal, 6/19).
