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Lawmakers split over using reserves or deeper Medicaid cuts to balance budget
Summary
Sen. Melissa Wintrow and other senators argued against further Medicaid service cuts and urged using reserve funds as a bridge; analysts warned about paying for growth with one-time money and noted statutory limits on using the stabilization fund.
Sen. Wintrow told the committee she believes services have already been cut "deep enough" and urged leaders to consider rainy-day funds instead of additional Medicaid service reductions. "I don't think we need... we've already cut deep enough. We're pretty efficient and lean now, and we're gonna start to go beyond the point of diminishing returns," she said.
Several senators echoed concern about additional cuts; one asked staff to identify what amount of reserves could be used as a bridge so Medicaid services would not be further trimmed. Keith Bybee responded that using one-time monies to pay for ongoing growth is a separate policy judgment and noted statutory constraints: transfers from the budget stabilization fund are limited (the statute specifies how much may be used in a fiscal year) and typically require concurrent legislation. Bybee offered to follow up with more detailed estimates for the committee.
