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February 9, 2011

Lawmakers OK supplemental budget

The Legislature yesterday approved a supplemental budget unveiled by Gov. Paul LePage last month that will help state hospitals receive nearly $250 million in Medicaid reimbursements.

The House voted 142-3 and the Senate 34-0 to pass the $151 million supplemental budget, which allocates $69.5 million in state funds and also uses federal money to reduce outstanding Medicaid payments to 36 hospitals to $150 million. The budget, which governs state spending until June 30, also includes $77 million for the state's Medicaid program to handle an increase in enrollment and offset loss of federal stimulus funding, according to MaineToday Media. The appropriations committee on Friday approved the budget with some changes, including an additional $1 million to be allocated to cities and towns. The budget also includes $600,000 for the state's dairy fund to help small farmers, according to the paper.

LePage is expected to introduce a two-year budget plan to lawmakers tomorrow that will address an expected $800 million shortfall.

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