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Morning Briefing

Summaries of health policy coverage from major news organizations

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Monday, Jun 8 2015

Full Issue

State Budgets Struggle Even As Recovery Continues

Rising health care costs are one factor cited in the budget woes of some states -- along with slow recoveries and growing pension obligations. The Washington Post parses some of the differences by looking at the budget fortunes -- and Medicaid spending -- of neighboring, GOP-led states, Arizona and Nevada. And Connecticut's hospitals take a hit in that state's budget.

Many of the legislatures that are struggling with budgets can point to external forces, including slow economic recoveries and rising health care costs, for their woes. This is very different from past recovery periods, where you had fairly robust revenue growth at the state level, said Scott D. Pattison, executive director of the National Association of State Budget Officers. Were not seeing enough revenue growth to solve some of the problems that were seeing. (Bosman, 6/7)

On Monday, Nevada passed its largest tax increase ever $1.1 billion in order to raise money for the states struggling schools. Local papers heaped praise on Gov. Brian Sandoval (R ) for pulling off this unlikely feat, which took months of coaxing his recalcitrant Republican colleagues. Arizona made history of a different kind last month. Propelled by his campaign-trail pledge to reduce taxes every year he is in office, Gov. Doug Ducey (R ) led his legislature into passing one of the states stingiest budgets in the past 30 years. The hundreds of millions in cuts come at the expense of Arizonas colleges, Medicaid and the poor. (Guo, 6/5)

Connecticuts hospitals, which already have seen a 2011 provider tax arrangement turn sour, have been bracing for another tax increase since February. But even that deal turned worse just days before the budget was adopted. (Phaneuf and Levin Becker, 6/8)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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