Gov. Bill Walker’s administration provided a final number on the amount of extra money it plans to spend this year beyond what the Legislature budgeted: $178 million.
Most of this cost — $92 million — is from Medicaid. Roughly a third of that cost is due to the Legislature funding Medicaid at a lower level than state officials projected costs would run. On top of that, those projections were too low. Officials say more people enrolled in Medicaid due to the recession.
Health Commissioner Valerie Nurr’araaluk Davidson described this in a recent Senate Finance Committee meeting.
“These are unprecedented times for our state,” she said. “The downturn in the economy has resulted in more folks enrolling in Medicaid than we anticipated. “
Eagle River Republican Sen. Anna MacKinnon told her that lawmakers are concerned about the spending.
“I’ve heard conversations in the halls of the Legislature that this administration, not specific to your department but including your department, is ignoring the Legislature’s intent to try to control costs and hold down the operating budget,” she said.
Davidson said the costs couldn’t be avoided.
“I certainly haven’t been provided a directive or a nod and a wink from anyone in the Walker administration that it is OK not to control our costs,” she said. “We certainly have those conversations about efficiencies. They are an agenda item in every cabinet meeting we have with the governor.”
Some lawmakers raised the possibility of narrowing Medicaid eligibility.
One potential approach is to require recipients to be employed.
State officials said three-quarters already work.
And many of those who don’t must look for work to receive other public benefits.
- Gov. Mike Dunleavy says the Alaska Federation of Natives hasn’t offered a valid solution to the fiscal crisis. He wants to know AFN’s plans to fight sexual assaults and educational woes in Native communities.
- The Yukon’s Minto Mine is expected to resume ore production in the near future. That means that Skagway’s ore terminal may begin loading ships with ore after months of inactivity. However, this may complicate the other needs of Skagway’s port.
- Opponents of the Pebble Mine are doing all they can to get Sen. Lisa Murkowski on their side. But Murkowski is not ready to make a declaration about the mine, for or against.
- Regulations on the Kuskokwim River are intended to keep fish populations sustainable for the future. But they can be frustrating for the Yup'ik people who've fished the river for generations.