Washington
For the first time, states are spending more on Medicaid than primary and secondary education, according to a study by the National Governor's Association and the National Association of State Budget Officers.
Last year, Medicaid accounted for 21.4 percent of all state spending, nearly as much as was spent on education, which totaled 21.7 percent, the study found.
“Since Medicaid is a federal entitlement and education is discretionary, Medicaid will trump education going forward,” said NGA Executive Director Raymond Scheppach.
Even with extensive cost-containment efforts and federal fiscal relief, states' Medicaid expenditures have exceeded the amounts originally budgeted, with 23 states experiencing Medicaid shortfalls in fiscal 2003 and 18 states projected to experience shortfalls in 2004, according to a joint news release from the NGA and NASBO. The combined amount of the shortfalls is projected to be $7 billion.
The study, part of NASBO's annual State Expenditure Report, is available at www.nasbo.org.
