ALBANY, NY (Erie News Now)--THE FINAL BUDGET PLAN IS NEARLY ACROSS THE FINISH LINE, CURRENTLY TOTALING AT $237 BILLION—A $3 BILLION INCREASE FROM THE GOVERNOR’S ORIGINAL PROPOSAL.  

THE GOVERNOR’S BUDGET DIRECTOR SAid MEDICAID SPENDING IS ONE OF THE MAIN REASONS FOR THE DRAMATIC INCREASE. 

“Of the $3 billion I think a good portion is attributable to Medicaid, we are providing some in-term rate increases for hospitals and nursing homes but also, we have some subsidies for distressed hospitals that’s a big dollar amount in there as well,” said Blake Washington, New York State Budget Director.

SOME LAWMAKERS SAid MEDICAID IS THE SINGLE LARGEST AREA OF THE NEW YORK STATE BUDGET BUT THEY WORRY THE LEVEL OF SPENDING YEAR TO YEAR IS GETTING OUT OF CONTROL.  

“So, I think we need to better prioritize that Medicaid spending particularly with the cap and try to provide those increases but do it in a responsible manner because that is something I think we all understand needs to be controlled in the budget otherwise we continue to just spend more, and more and more on it,” said Assembly Member Ed Ra (R-Assembly District 19).

OTHER LAWMAKERS SAid THE INCREASES THIS YEAR ARE IN THE RIGHT SPOTS, SUCH AS IMPROVING REIMBURSEMENT RATES FOR hospitals AND NURSING HOMES.  

THEY ALSO HIGHLIGHT A MEASURE IN THE BUDGET THAT WILL HELP GENERATE MORE MONEY FOR MEDICAID THROUGH FEDERAL FUNDS CALLED THE MANAGED CARE ORGANIZATIONS TAX OR THE MCO TAX. 

THE CHALLENGE—THIS TAX PENDS FEDERAL APPROVAL.  

“There’s a very good probability these rate increases that we’ve allocated in the budget will be effective now, but the real larger increases due to the MCO tax may not be effective until next year’s budget in 2025,” said Assembly Member John McDonald (D-Assembly District 108).

Lawmakers are expected to vote on budget bills Thursday and Friday. And as legislators debate and vote on budget bills, the final budget could see new developments. 

For example, the Senate Majority leader said Thursday evening the total for the final budget plan looks like it's coming in at a little more than $237 billion--$4 billion over the Governor's original $233 billion proposal.