Several states miss budget deadline, putting Medicaid services at risk

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Illinois Governor Pat Quinn (D)
Illinois Governor Pat Quinn (D)
Tuesday at midnight was the deadline for most states to have completed their budget proposals for the coming fiscal year. Many didn't make it, placing state services, including Medicaid programs, at risk of significant cuts.

Among the handful of states that failed to meet the midnight budget deadline is California. The fiscally embattled state has been struggling with low tax revenue and high costs for public services over the last several years. This latest financial hitch has forced the state to resort to issuing "IOUs" to many of its state agencies. Medi-Cal, the state's Medicaid program, will continue to issue warrants to skilled nursing and disability-care providers through July, according to an update from the California Association of Healthcare Facilities. CAHF strongly recommends providers prepare for possible contingencies, however, in the event that the state can't borrow sufficient cash to meet its expense needs.

Other troubled states include Pennsylvania, Arizona, Indiana, Ohio, Connecticut, Mississippi and Illinois, reports The Associated Press. In Illinois, not only did lawmakers fail to arrive at a budget for FY 2010, but they did not make any solid plans to resume negotiations after the July 4 recess, according to the AP.