FRANKFORT, Ky. (LEX NEWS) — Kentucky Gov. Andy Beshear said Wednesday there will be no 4% cut to Medicaid funding, citing what he described as a strong financial position for the state.
During a press conference, Beshear said Kentucky has $781 million in available surplus funds, made up of the previous fiscal year's budget surplus and an additional $350 million in tax revenue.
"The budget surplus from the last fiscal year and the $350 million in extra tax payment provide a total of $781 million in surplus funds available right now," Beshear said.
The governor said those funds will allow the state to avoid reducing Medicaid funding.
Following Beshear's announcement, Kentucky House Speaker David Osborne criticized the governor's handling of the issue.
"Lawmakers approved more funding for Medicaid than the governor requested in the budget proposal originally filed by the House Minority," Osborne said in a statement. "Neither the governor, nor his administration have provided any actual evidence of why they need more money."
Osborne also accused the governor of unnecessarily alarming Kentuckians about potential cuts.
"Rather than frightening vulnerable Kentuckians—including children, individuals with profound disabilities, and seniors—with threats of cuts, it's time to stop crying wolf and start managing Medicaid with the seriousness, transparency, and accountability Kentuckians expect," he said.
Meanwhile, the Kentucky House and Senate Democratic Caucuses released a statement praising Beshear's Medicaid program action plan:
"We applaud Governor Andy Beshear’s brave and decisive action to prevent the Republican Medicaid cuts that threatened access to care for thousands of Kentuckians. We celebrate his announcement of full funding of Kentucky’s Medicaid program for this fiscal year. Strong financial management and visionary leadership have given us this opportunity to meet the moment, and to be the leaders Kentuckians deserve. This is welcome news for patients, families, and providers. This solution is made possible by the governor's record of economic growth, responsible fiscal stewardship, and careful management of state finances, which have put Kentucky in a position to avoid the cuts that were part of the budget passed by the General Assembly’s supermajority. Today's announcement prevents immediate harm, but it is a temporary solution, not a long-term fix. The concerns raised by families, providers and advocates remain, and the General Assembly must respond by ensuring Medicaid is fully funded in the second year of the budget. We, as Democrats, commit to re-opening the budget in January to fully fund Medicaid for the next fiscal year, and we call on our Republican colleagues to make that same commitment."
