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Governor ready with alternative budget

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Governor ready with alternative budget

So then, Gov. Asa Hutchinson is presenting lawmakers with his proposed budget that is based on his plan to overhaul the state’s controversial Private Option, a form of Obamacare, and is somewhat warning them that if they fail to go along there will be significant cuts that will be required in order to absorb the millions of dollars in reduced federal funding beginning next year.

Since becoming governor more than a year ago, Hutchinson has wanted to overhaul the state’s privateoption program rather than abolishing it altogether as some staunch anti-Obamacare advocates would want to occur.

The federal program uses Medicaid dollars to purchase private health insurance for low-income Arkansans, and about 210,000 of them are currently covered.

Hutchinson is working his sales pitch well before the April 6 special session of the Legislature in hopes of convincing lawmakers the importance of adopting what he terms Arkansas Works as an alternative to simply abolishing the Private Option and coming up with another program to deal with the nearly quarter of million Arkansans dependent upon free or government subsidized health care.

Hutchinson is not totally convinced his plan is a sure bet and has a secondary budget he says will certainly take into account the millions of dollars in state tax dollars needed to make up for the five percent reduction the federal government will implement next year.

Even House lawmakers are drafting their own alternative budget proposal in case the Legislature fails to authorize funding.

Hutchinson has made it clear failure to authorize funding for the Medicaid expansion will create a budget “hole” of at least $100 million and while net general revenue available to state agencies will increase by $106.8 million, or 2 percent, in fiscal 2017 it will fall far short of what will be required.

Some lawmakers are saying in case the Legislature doesn’t reauthorize the Medicaid expansion one option being considered is a 3 percent across-the-board cut in state agencies’ general revenue budget. So then, what does that mean for cities such as West Memphis and Marion and counties such as Crittenden? According to Senate president Pro Tempore Jonathan Dismang, RSearcy, it means grant money would be cut. In addition, public schools, higher education and the department of correction, Community Correction, Health and Human Services would all face cuts to save enough money to pick up the federal government’s current portion of state Medicaid.

As already pointed out, Hutchinson is making it clear that there are no real guarantees that his program, Arkansas Works, works.

Some of the more liberal lawmakers are distancing themselves from the governor’s plans calling for a charge of about $19 a month for adults who have incomes of at least the poverty level; and referring unemployed, able-bodied enrollees to job-training programs.

Based on what state taxpayers will be facing next year we would like to think the governor’s plan would gain the necessary support for passage. We shall soon see the outcome in a few weeks.

BIBLE VERSE

But godliness with contentment is great gain. For we brought nothing into this world, and it is certain we can carry nothing out. And having food and raiment let us be therewith content. But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.

Timothy 6:6-10

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