Recession leaving Medicaid short

In large part because of the recession, the administrator of Nevada Medicaid says the program will be an estimated $37 million in the red by the end of the biennium.

Charles Duarte, administrator of the Division of Health Care Financing and Policy, told the Legislative Interim Finance Committee Thursday the Children's Health Assistance Program is already 4 percent over it's estimated budget.

"That equates to $37 million in General Fund money over the biennium," he said.

Asked about Nevada Check-Up, the program which provides health insurance to the children of Nevada's working poor, he said that program is in better shape because families losing their jobs is allowing many more of them to qualify their children for Medicaid coverage instead.

Nevada's General Fund share of the Medicaid budget is more than $200 million this biennium. The total budget, which is nearly 60 percent federal money, was beefed up significantly by federal Stimulus funding for this biennium.

But Duarte told lawmakers the demand for services has been escalating because the economy is making so many more people eligible.

Toward the end of the 2009 Legislature, lawmakers had to pump more than $23 million in additional state funding into the program.

He promised to keep them advised of the situation in the coming months.

In other action, IFC:

• Approved the decision by Nevada's Board of Regents to raise student classroom fees by an average of 5 percent to make up for part of the budget cuts imposed on the university system by Gov. Jim Gibbons and the 2009 Legislature. The system overall suffered a reduction of more than 14 percent in state support.

The total amount of the increase, spread over all of the system's campuses, is expected to generate $7.15 million in revenue to provide student classes and services.

At Western Nevada College, the increases are projected to bring in $101,428. At UNR, they will raise just over $2 million.

• Authorized the Nevada Department of Cultural Affairs to accept $555,750 in federal highway funds to pay for construction of new permanent transportation exhibits at the Nevada State Railroad Museum in Carson City.

• Accepted $441,255 in federal Byrne Memorial Formula Grants to strengthen anti-methamphetamine programs in the state.

• Authorized Secretary of State Ross Miller to spend $1.97 million to begin the process of creating a business portal which will combine, centralize and simplify the process of licensing and registering a new business in the state of Nevada. Miller told IFC members the money will tie his commercial recordings operation to the Department of Taxation so his staff can begin collecting the business license fees when they collect annual filing fees. He said that is only the first step in the process. But he said just this first step should help begin collecting a significant amount of money now escaping the state.