McCrory: Limit state spending to cover Medicaid overrun

Published: March 8, 2013 Updated 3 minutes ago


By Lynn Bonner The_News_and_Observer

By Lynn Bonner —

Gov. Pat McCrory is ordering state agencies to reduce their spending to cover an overrun in the state Medicaid budget estimated at up to $130 million.

McCrory told his budget office Friday to transfer available state funds to pay Medicaid costs, and told agencies to stop giving raises, and to limit purchases, travel and other expenses.

The Medicaid budget has always been hard to predict. A state audit this year found that Medicaid overspent its budget by $1.4 billion over three years.

McCrory said in a statement that it was time to end previous state budget practices that produce ongoing shortfalls.

“It is time to solve this mess, not kick the can down the road and manipulate the budget as was done in the past. It stops now,” he said.

McCrory has cited Medicaid budget overruns as one of the reasons he decided not to support the Medicaid expansion under the federal Affordable Care Act.

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