Study: Medicaid costs still growing faster than state revenues

A new study from the National Governors Association and the National Association of State Budget Officers paints a mixed picture -- at best -- of state budgets.

The Washington Post: States Face Bleak Economic Forecast, Report Says
The report says that Medicaid, the combined federal-state health program for the poor and the disabled, will place the biggest budgetary burden on states. Because of increasing caseloads, declining federal help and spiraling health-care costs, state Medicaid spending is growing much faster than state revenue, crowding out funding for other priorities (Fletcher, 11/29).

The Wall Street Journal: State Budgets Improve Slowly
While revenue is projected to continue growing with the economy, albeit slowly, the cuts will likely continue because states' costs-;in particular their costs for Medicaid, the state and federal health-care program for the needy-;continue to outpace the growth in tax revenue (LaHart, 11/29).