Republican Gov. Pat McCrory issued a memorandum this afternoon to state agencies directing them to stop salary increases and send extra dollars to the state Medicaid office to offset an anticipated budget shortfall.
McCrory’s memorandum came with a critical reference to his predecessor, former Democratic Gov. Beverly Perdue, and how her office dealt with Medicaid shortfall issues by adjusting the budget.
“It is time to solve the mess, not kick the can down the road and manipulate the budget as was done in the past,” McCrory said, according to a written statement. “It stops now.”
The state is anticipating $70 million to $130 million more in expenses for Medicaid in the current fiscal year, which ends June 30, than the $13 billion budgeted by the state legislature.
McCrory also indicated in the memorandum that state revenue was up by $100 million, removing most of the sting out of the anticipated shortfall.