After a bruising budget fight last year, the state Medicaid program that supports Arizonans with developmental disabilities is again expected to run out of money this year without additional funding.
In her proposed budget, Gov. Katie Hobbs asked lawmakers for an extra $128 million this year for the Division of Developmental Disabilities.
The request comes nearly a year after Hobbs and Republican lawmakers sparred for months over an emergency funding package for the program, which needed the new money to avoid insolvency.
The two sides eventually reached an agreement in April following a vocal lobbying effort by families who use the program. That deal tied the funding to a package of reforms designed to reduce costs.
“We are currently implementing the cost saving measures that were passed into law last year when the governor negotiated and signed the supplemental, and so we'll be realizing those cost savings in the coming year and obviously out years,” said Christian Slater, the governor’s spokesman.
Slater said he expects lawmakers to approve the new funding request.
“The governor is also obviously open to any kind of discussions about smart ideas to find further cost savings, while also obviously protecting the health care for disabled Arizonans who do really rely on this program,” he said.
The governor’s budget also requests a nearly $300 million increase in the program’s budget next year.
According to the governor’s office, the costs are largely driven by an increase in the number of Arizonans who qualify for coverage. That includes a roughly 1,000% increase in qualifying autism diagnoses since 2006.
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