Governor forecasts $1.5 billion shortfall for 2010

20 August 2009

On August 19 Gov. Timothy M. Kaine has announced that Virginia is forecasting a revenue shortfall of $1.5 billion for 2010. His administration has signaled that this gap will be closed through expense reductions, reprogramming of unexpended balances, targeted withdrawal of reserve funds, focused use of federal Recovery Act funds and other strategies. While Gov. Kaine will not announce specific plans for implementing budget reduction plans, which could include cuts to Medicaid reimbursement, until early September, he has stated these decisions “will be painful to those who rely on public services in this most challenging time.”

As part of his remarks to the General Assembly's joint money committees, Gov. Kaine released the state's official revenue forecast and talked about Virginia's economic climate. In highlighting the challenges facing Virginian's in these tough times, Gov. Kaine talked about his experience as a volunteer at the annual Wise County Health Fair to "serve thousands of people who lack basic health care." He added "after many years of attending this weekend-long event, I am still stunned to see the unmet needs of citizens in the greatest nation on earth." To read the Governor's complete remarks, click here.

MSV is closely monitoring Virginia's budget picture and the implications for the Medicaid program. In the coming months, we will continue to meet with members of the General Assembly to reinforce with them the importance of preserving patients' access to care by ensuring the Medicaid program is appropriately funded. We encourage you to communicate with your delegate and senator about the effects Medicaid reimbursement cuts would have on your patients and practice.