Study: Medicaid Costs Still Growing Faster Than State Revenues

A new study from the National Governors Association and the National Association of State Budget Officers paints a mixed picture -- at best -- of state budgets.

The Washington Post: States Face Bleak Economic Forecast, Report Says
The report says that Medicaid, the combined federal-state health program for the poor and the disabled, will place the biggest budgetary burden on states. Because of increasing caseloads, declining federal help and spiraling health-care costs, state Medicaid spending is growing much faster than state revenue, crowding out funding for other priorities (Fletcher, 11/29).

The Wall Street Journal: State Budgets Improve Slowly
While revenue is projected to continue growing with the economy, albeit slowly, the cuts will likely continue because states' costs—in particular their costs for Medicaid, the state and federal health-care program for the needy—continue to outpace the growth in tax revenue (LaHart, 11/29).