Governor unveils budget reduction plan

8 September 2009

Gov. Timothy M. Kaine today unveiled his plan to balance Virginia’s budget and address a $1.3 billion state budget deficit.

The governor’s plan includes a transfer of $283 million from the Revenue Stabilization Fund, no new tax increases and maintenance of Medicaid eligibility and services.  The vast majority of savings in Medicaid result from a stimulus-based federal Medicaid match of $97,000,000 for FY 2010 that is higher than expected.

MSV staff has performed an initial review and has outlined the following health-related cuts that may be of interest to members.

•  Five percent reduction to Community Service Boards ($12,203,180)
•  Three percent reduction in indigent care funding paid to VCU and UVA academic health centers ($7,000,000)
•  Eliminate 100 mental retardation (MR) waiver slots planned for January 1, 2010 ($1,235,099)
•  Fifteen percent reduction in funding for the Poison Control Centers ($232,454)
•  Five percent reduction in funding for the Virginia Health Care Foundation ($204,029)
•  Ten percent reduction in funding for Comprehensive Health Investment Project of Virginia ($164,195)
•  Five percent reduction in funding for the Virginia Association of Free Clinics ($159,820)
•  Various reductions to individual free clinics around the state

Click here to view the governor’s press release.

The Governor's reduction plan can be found at: http://dpb.virginia.gov/forms/forms.cfm?search=2010%20reduction.