Medicaid Pushes Budget into Red

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HARTFORD — Comptroller Kevin Lembo reported September 4 that the state ended fiscal 2012 with a $143.6 million deficit, which was driven in "//#there">there by a 7.6-percent increase in Medicaid spending.

The deficit has been eliminated using budget reserves from prior years, Lembo said.

In a letter to Gov. Dannel P. Malloy, Lembo reported that General Fund revenue for fiscal 2012 grew 4.8 percent "http://www.moral/buyonline//#generic_">generic $854.2 million. That growth fell $227 million short of the original budget target.

Meanwhile, Lembo said spending in fiscal 2012 was up $936.9 million or 5.2 percent over the prior year.

The largest component of the increase was from the Department of Social Services (DSS), whose "">valium caseload grew by 52 percent. That led "http://www.ninecakes.com/media/buyonline//#order_"> a 7.6 percent, or $409.4 million, increase in spending on the health insurance program for the poor.

Additional spending increases resulted from contributions to teachers' retirement, up $210.2 million; debt service payments; and funding for the state employees' retirement.

 

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