Tuesday, May 29, 2007

Let the budget battle begin! The Senate unveiled its initial version of the budget this morning. As expected it does not include the temporary taxes the House included. It also leaves out the $100 million for Medicaid but says it will work on a comprehensive plan. More on that in a minute.

Several leaders in both chambers have deep concern that unless a compromise happens quickly on those taxes we could be in for a long summer at the legislature.

Back to the Medicaid issue. It appears this issue will be taken up outside of the budget. There are two proposals or compromises. One includes sales taxes and another includes a long list of changes to fund it 100% for the counties. The state would be clear for up to three years but would then end up around $120 million short in that department. Still getting details on the plan but it seems to be getting a good reception from both sides of the aisle.

Stay tuned!

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