Medicaid Needs Another $84 Million If Tax Cuts Proceed

Nov 12, 2014

Outgoing Gov. Mike Beebe is recommending an additional $84.2 million in state funding for Arkansas' Medicaid program and $60 million from state surplus funds if lawmakers move forward with tax cuts approved last year.

Beebe's administration on Wednesday presented two budget recommendations for the state's Medicaid program, depending on whether lawmakers decide to let the tax cuts take effect. Beebe, a Democrat who is leaving office in January due to term limits, has recommended delaying about $26 million worth of tax cuts that are to take effect in July.

Without the tax cuts, Beebe recommends an additional $79 million for Medicaid next year, and says $40 million from the surplus should be set aside for the program during the next two years.

Republican Governor-elect Asa Hutchinson takes office in January.