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Morning Briefing

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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. 鈥淭his is very different from past recovery periods, where you had fairly robust revenue growth at the state level,鈥 said Scott D. Pattison, executive director of the National Association of State Budget Officers. 鈥淲e鈥檙e not seeing enough revenue growth to solve some of the problems that we鈥檙e seeing.鈥 (Bosman, 6/7)

On Monday, Nevada passed its largest tax increase ever 鈥 $1.1 billion 鈥 in order to raise money for the state鈥檚 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 state鈥檚 stingiest budgets in the past 30 years. The hundreds of millions in cuts come at the expense of Arizona鈥檚 colleges, Medicaid and the poor. (Guo, 6/5)

Connecticut鈥檚 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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