By AP
Frankfort, KY – Kentucky House Speaker Greg Stumbo says budget writers are looking at squeezing savings from Medicaid and government contracts to help balance the next state budget. Stumbo told reporters Tuesday that significant savings could be achieved from Medicaid, the state-federal health insurance program for the poor and disabled. Stumbo said, for example, that Kentucky's Medicaid prescription drug program costs about $1 billion more a year than the program in Oklahoma -- a state similar to Kentucky in population. He said Kentucky can do a better job of spending Medicaid funds without hurting services. Stumbo also said that personal service contracts he projected at more than $1 billion could be trimmed significantly. Stumbo has said lawmakers are looking at shortfalls of about $400 million in the first year and about $750 million in the second year of the next two-year budget cycle.