Kentucky's Medicaid program is likely to be short more than $360 million in total funding over the next two years, the state's health and family services secretary said. Under Gov. Steve Beshear's proposed budget, Kentucky's Medicaid program is expected to be shy by as much as $183 million in each of the next two fiscal years. That's despite proposed state funding increases to the program. Economic forecasters have predicted that shrinking state revenues have led Kentucky to the brink of a $900 million shortfall over the next two fiscal years.