Foreshadowing the discussions in every area was the unresolved issue of whether the Federal Government will extend ARRA’s (American Recovery and Reinvestment Act) increase in the Medicaid formula for the states (FMAP). Extension of the FMAP means about $500 million for North Carolina’s budget. Late in the week of June 14, indications from Washington, D.C. were that Congress would not approve the extension. This caused Gov. Perdue and North Carolina legislative budget conferees to return to their spreadsheets to determine how to further adjust spending plans.
 Without the ARRA FMAP funds, North Carolina’s budget hole grows to $1.2 billion; on the other hand, lawmakers elected in Nov. 2010 will have to determine how to live without those funds in 2011. At the end of the week, lawmakers continued with the budget work that was underway, but considered preparing a supplemental plan -- one that would indicate how programs would be adjusted should the Congress decline extension of FMAP. Rumors circulated that departments – including Health and Human Services – could have additional budget cuts across the board of 3.5 percent. What makes this situation even more tenuous is that Congress’ action could occur after North Carolina’s legislators pass a final budget, which is why a contingency plan is so important.
 NCOTA continues to monitor budget progress and is very concerned that additional cuts could lead legislators into the area of severe rehabilitation therapies visit limits, such as those suggested by Gov. Perdue earlier in the process. Such modifications have been rejected by lawmakers so far. If reconsidered and implemented, however they would result in a rehab therapies program of little benefit. NCOTA acknowledges Rep. Randy Stewart (D-Nash) who has strenuously objected to such changes at every turn in the budget debate. Please contact your legislators to explain to them the consequences of such changes. To read the entire budget proposal, please visit www.ncleg.net. The latest versions of S 897 and the corresponding money report are on the front page.  
To identify your legislator or for more information about the North Carolina General Assembly, please visit www.ncleg.net .