LINCOLN- The federal government is again planning to decrease the percentage of state Medicaid costs it will cover for Nebraska, leaving state lawmakers on the hook for an additional $90.3 million this budgeting cycle. State Sen. Rob Clements of Elmwood, chair of the budget-writing Appropriations Committee, announced the revision Thursday, one day after legislative staff found the overlooked Federal Medical Assistance Percentage (FMAP) revisions from January.

That oversight will eat into the progress of a recently amended two-year economic forecast, which decreased an initial $432 million shortfall at the start of the session to $267 million. That’s because of an additional $65 million in projected tax revenue over the next two fiscal years. Lawmakers also have the option of accessing an additional $100 million in revenue from this fiscal year that went automatically to the cash reserve. The change Clements discussed this week determines federal matching funds to offset state Medicaid costs, meaning the recent decrease in federal funds leaves the state needing to pay for more.

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