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Texas agencies, including Medicaid, told to make further budget cuts

Dallas Morning News, December 8, 2010

Texas state leaders, trying to dig out of a hole in the current two-year budget before the next one has to be whacked, ordered agencies Tuesday to further curb spending. Managers of the state Medicaid program immediately announced they would cut another 1% from the fees paid to doctors, dentists and hospitals, along with 2% in payments to nursing homes and home healthcare providers. The decreases take effect Feb. 1, and they come on top of 1% cuts that kicked in just before Labor Day. Overall, state revenues wound up $2 billion below expectations for the budget year that ended on Aug. 31. Some senior legislative staff members estimated the shortfall in the next two years could be as high as $24 billion or $25 billion.