Beshear says no 4% Medicaid cut planned as Kentucky House Speaker pushes back

FRANKFORT, Ky. (LEX NEWS) – Kentucky Gov. Andy Beshear said Wednesday there will be no 4% cut to Medicaid funding, citing what he described as a strong financial position for the state.

During a press conference, Beshear said Kentucky has $781 million in available surplus funds, made up of the previous fiscal year’s budget surplus and an additional $350 million in tax revenue.

“The budget surplus from the last fiscal year and the $350 million in extra tax payment provide a total of $781 million in surplus funds available right now,” Beshear said.

The governor said those funds will allow the state to avoid reducing Medicaid funding.

Following Beshear’s announcement, Kentucky House Speaker David Osborne criticized the governor’s handling of the issue.

“Lawmakers approved more funding for Medicaid than the governor requested in the budget proposal originally filed by the House Minority,” Osborne said in a statement. “Neither the governor, nor his administration have provided any actual evidence of why they need more money.”

Osborne also accused the governor of unnecessarily alarming Kentuckians about potential cuts.

“Rather than frightening vulnerable Kentuckians—including children, individuals with profound disabilities, and seniors—with threats of cuts, it’s time to stop crying wolf and start managing Medicaid with the seriousness, transparency, and accountability Kentuckians expect,” he said.

The exchange marks the latest disagreement between the Democratic governor and the Republican-led General Assembly over the state’s Medicaid budget and funding priorities.