House accepts Senate's proposal to fix Medicaid

Published: Mar. 24, 2011 at 11:58 PM EDT|Updated: Apr. 26, 2011 at 2:49 PM EDT

FRANKFORT, KY (AP) - The House has accepted a Senate proposal to balance the state's Medicaid budget after receiving assurance from Gov. Steve Beshear that he would veto objectionable portions.

The Republican-controlled Senate's proposal calls for cuts to most government agencies to free up money for the Medicaid program - a move the Democratic-controlled House has vehemently opposed.

The House voted 86-2 late Thursday to approve the measure.

Beshear has been pushing to transfer $166.5 from next year's budget to shore up Medicaid this year, then plug next year's $425 million budget gap through privatization. But the Senate passed a proposal along party lines Thursday afternoon that imposes cuts to nearly every government agency to balance Medicaid.

Beshear has line-item veto power to strike essentially everything except the transfer provision.

(Copyright 2011 by The Associated Press. All Rights Reserved.)