State may cut millions from nursing homes
The Legislature will convene next Tuesday, August 19, to decide how to cut at least $1.2 billion from the federal budget, according to news reports. Nursing homes are expected to take a severe hit—perhaps $500 million, according to one news outlet. The cuts will likely amount to a several job cuts at each nursing home, observers say. About 65% to 70% of nursing home residents in the state use Medicaid.
This April, 23 states and Puerto Rico reported projected budget shortfalls of up to $26 billion for FY 2009. The National Conference of State Legislators had blamed the shortfalls on the crumbling housing market and other recent economic calamities (McKnight's, 4/29). In addition, states' revenues dropped by 5% in the first quarter of 2008 compared to the same time last year, the third straight quarterly loss in a row (McKnight's, 7/2).