Many States Opt for Budget Cuts Over Raising Taxes
As a strategy to address a combined budget deficit of $86 billion, a number of state legislatures have moved to cut spending instead of raise taxes. States are being hit in part with the loss of increased Medicaid funding, which was provided through the federal economic stimulus program and ran out on June 30. For example, California placed a soft cap on annual physician visits for Medi-Cal beneficiaries and enacted a 10% pay cut to health care providers. Medi-Cal is California's Medicaid program.
- "Higher Taxes Yield to Budget Cuts in States" (Eaton/Maher, Wall Street Journal, 7/7).