Yesterday, the Governor signed the bill allowing a continuing resolution to fund state operations past the end of the fiscal year.  I noticed there is a specific reference to the Medicaid shortfall in the continuing resolution, and the Governor takes the time to mention the additional $45 million set aside for the expected shortfall total to keep climbing in his press release.

The Left keeps claiming the state can solve its Medicaid problem by accepting the federal government’s handout – That is just NOT true!  No matter what happens, the state did not pay its bill and it must pay it back.  That is what the shortfall is all about.  No amount of Obamacare is going to pay for a Medicaid  bill that former Governor Perdue forgot to pay.  So it is now confirmed by the legislature and the Governor alike – budget negotiations are continuing in part because of the large Medicaid problem.  Sure, there are other things that are contributing to the continuing resolution, but Medicaid is definitely on the short list.

Here is the Governor’s press release:

“The continuing budget resolution will keep state government funded as we work on major initiatives like tax reform, Medicaid reform, our economic development reform called Partnership for Prosperity, and a revamp of the State Personnel Act,” said Governor McCrory. “This has already been a historic session as the General Assembly has tackled many reforms that were largely ignored in the past, resulting in the position we are in today. There is still much work to be done to get North Carolina back on the right economic track.”

The contingency plan will allow government operation to be funded at a 95 percent level of the current fiscal year from July 1 until July 31 or until a budget is passed and signed by the governor.  It also includes the authorization, if necessary, to spend an additional $45 million for a potential Medicaid shortfall. Since the governor took office, the administration was required to spend $400 million more than originally budgeted.

“Medicaid overruns continue to threaten investments in other vital services such as education, public safety and transportation,” Governor McCrory said. “Reform is essential if we are to successfully plan for the state’s economic future and get North Carolina’s economy growing again.”

The legislative session traditionally ends shortly after a budget is passed and signed by the governor, but there is no statutory requirement mandating adjournment.

Raleigh, NC– Governor Pat McCrory released the following statement today after signing a continuing budget resolution late Wednesday afternoon.

“The continuing budget resolution will keep state government funded as we work on major initiatives like tax reform, Medicaid reform,  our economic development reform called Partnership for Prosperity, and a revamp of the State Personnel Act,” said Governor McCrory. “This has already been a historic session as the General Assembly has tackled many reforms that were largely ignored in the past, resulting in the position we are in today. There is still much work to be done to get North Carolina back on the right economic track.”

The contingency plan will allow government operation to be funded at a 95 percent level of the current fiscal year from July 1 until July 31 or until a budget is passed and signed by the governor.  It also includes the authorization, if necessary,  to spend an additional $45 million for a potential Medicaid shortfall. Since the governor took office, the administration was required to spend $400 million more than originally budgeted.

“Medicaid overruns continue to threaten investments in other vital services such as education, public safety and transportation,”   Governor McCrory said. “Reform is essential if we are to successfully plan for the state’s economic future and get North Carolina’s economy growing again.”

The legislative session traditionally ends shortly after a budget is passed and signed by the governor, but there is no statutory requirement mandating adjournment.

– See more at: http://www.governor.state.nc.us/newsroom/press-releases/20130627/governor-mccrory-releases-statement-concerning-continuing-budget#sthash.AGimyS06.dpuf