Governor Northam’s revised budget bill proposes cuts for education and a boost to Medicaid spending. But, the loss for schools isn’t necessarily a gain for healthcare.
Nearly half a billion dollars that was planned for K-12 programs and teacher pay raises over the next 2 years is now off the table in Northam’s proposal.
Laura Goren is a policy researcher at the Commonwealth Institute for Fiscal Analysis. She says the state has about $1 billion in reserves and its rainy day fund.
“It seems to me like it’s raining right now in Virginia and in this country as a whole and we should be using our rainy day fund,” Goren says.
A recent report from the Commonwealth Institute indicated that the cuts are likely to hit hardest in school divisions with high rates of poverty and the highest percentage of students of color.
And while it may seem that those cuts are making room for healthcare, Goren explains that the boost is actually coming from federal funds for Medicaid.
“And Virginia is actually saving money within its Medicaid program because of that increased federal support,” she says.
That support requires the state to maintain coverage for people who might’ve otherwise lost it due to income changes or administrative hurdles, says Goren, but Medicaid expansions that were put on hold, like dental care or increased access for immigrants, didn’t make it to the Governor’s proposal.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.