Forum Session

State Budget Cuts: How Will Health Care Fare in FY 2009?
July 11, 2008


Christie Provost Peters


July 1 marked the start of the new fiscal year for most states, and for many the economic outlook is bleak. More than half of all states are projecting budget shortfalls for state fiscal year (SFY) 2009, and others are already predicting shortfalls for the following year. Collectively, the 2009 shortfalls for 27 states and the District of Columbia are expected to total at least $47 billion. Faced with drawing on reserves, increasing taxes, or cutting spending, many states are making tough choices for closing their budget gaps—choices that include cutting Medicaid and other public health care expenditures. This Forum session examined the fiscal status of the states and what short- and long-term effects SFY 2009 budget decisions will have on public programs such as Medicaid and SCHIP and the low-income, vulnerable populations they serve.


Brian Sigritz, Staff Associate, National Association of State Budget Officers; Steven Costantino, Chair, House Finance Committee, Rhode Island General Assembly; Vernon K. Smith, PhD, Principal, Health Management Associates; with comments from Ann Kohler, Director, National Association of State Medicaid Directors

Slides from the presentations by Mr. Sigritz, Mr. Costantino, and Dr. Smith are available for download.

Related Materials

See also "Medicaid Financing" (The Basics, January 5, 2016), and "Medicaid and State Budgets: Clearing Storm, Foggy Forecast" (Issue Brief No. 824, August 17, 2007).

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