"Why are you in special session?"
We're here to fill a gap in Medicaid that came about when Congress provided fewer stimulus dollars than expected this fiscal year for the healthcare program. It was an assumption also made by about two dozen other states.

We are also working to raise the high school dropout age from 16 to 18, in an attempt to greatly reduce the number of dropouts in Kentucky. There were about 6,000 last school year.

"Why didn't you fix Medicaid during the regular session?"
The House tried. We approved our Medicaid plan on Feb. 10, but the Senate did not unveil its proposal until there were three legislative days left before the veto recess. Nevertheless, the House offered several compromises during negotiations, and then held out hope that House and Senate leaders could find common ground during the veto recess. The Senate used up the session's last day without the House, however, and the opportunity to vote on the session's last scheduled day, March 21st, was lost. That left two choices: Drastic cuts or a special session.

"Why can't Governor Beshear handle this without the General Assembly?"
The state must balance its budget by June 30th, the end of the fiscal year. Because the gap is more than a half-billion dollars when you factor in the loss of federal matching funds, there is not enough time to cover this deficit without causing serious financial harm to healthcare providers that treat Medicaid patients. If the legislature does not act, Governor Beshear will have to cut their payments by 35 percent during the next three months. For our hospitals alone, that would be a reduction of as much as $135 million.

It is important to emphasize that previous governors have closed even larger gaps without using money from outside of Medicaid.

"Can't you just lower the number of people on Medicaid or reduce the level of services?"
The federal government bars us at this time from closing the gap by reducing eligibility requirements for those who qualify. If we lost the federal match – which provides about 75 cents of every Medicaid dollar – we could not afford to run the $6.5 billion program by ourselves.

"Is there any agreement between the House and Senate?"
This is still a fluid situation, but all sides agree on one thing: Bringing $166.5 million forward from next year's budget to close the deficit and to take advantage of the higher federal match rate before it returns to traditional levels in the summer. In other words, by acting now, we can qualify for more federal money to pay some of next year's bills.

The difference between the House and Senate is how we come up with the $166.5 million.

"What does the House propose?"
The original House proposal would have allowed Governor Beshear to recoup all of the money from savings achieved by expanding the type of managed care programs that have long proven so successful in Jefferson and 15 surrounding counties. Other states have seen similar success.

Since then, the House has agreed to rely less on those savings and to use money from several different sources to make up the difference. That primarily includes additional revenue the state is expected to see because of an improving economy. The House has not proposed any across-the-board cuts.

"What about the Senate's plan?"
The original Senate plan would have given Governor Beshear little credit for savings from managed care. Instead, that chamber pushed primarily for more cuts across state government, including the classroom.

The Senate now appears willing to assume more savings from managed care, but still wants the across-the-board cuts. Eighty percent of the 138 House and Senate members are on record against school cuts, because they are just not necessary.

"Has state government really been cut?"
The current year's budget is 3.5 percent less than the state's budget for 2009-10. Next year's budget will be one percent smaller than this year's. On top of that, Governor Beshear has to find an additional $169 million in savings in 2011-12, which is the equivalent of another two-percent cut.

With these reductions in mind, the Senate's original plan to cut again would be devastating for many agencies. Chief Justice John Minton says the Judicial Branch would have a budget 28.5 percent less when compared to 2008-09. That branch has also already cut about 240 jobs.

The Attorney General's office would have 20 percent less revenue over the same timeframe under the Senate's original plan. Public health programs would have 16 percent less, and Kentucky State Police would have 13 percent less. Our public postsecondary schools would have 10 percent less.

"Can you give me more personal examples?"

I'll give you 10:

1.) Many young drivers would have to travel farther to get their license. There would be 20 regional driving centers rather than one in each county.

2.) Local governments would get $1.2 million less for their jail costs.

3.) Day treatment programs run by the Justice & Public Safety Cabinet for at-risk youth would be cut by 50 percent, putting many of these services back in the hands of already cash-strapped school boards.

4.) Resort parks were already closed for two weekdays each week during the winter. New cuts would lower park services right as peak season gets underway.

5.) Public advocates would lose up to 50 attorneys; Commonwealth's Attorneys would lose 20.

6.) The state would provide less funding to two livestock and diagnostic disease centers at UK and in Hopkinsville. This would make it tougher to spot and treat problems with cattle and other livestock.

7.) Graduating high school seniors would see a reduction in their lottery-based KEES cholarships.

8.) Services at the three state veterans homes would keep us from meeting the demand of many in need.

9.) Some domestic violence programs would close.

10.) Doctor offices may refuse Medicaid patients, forcing them to go to the more costly hospital emergency rooms, and independent pharmacies would struggle to remain open.

"When will this special session end?"
The House expects to vote on a compromise bill early this coming week. A solution will hopefully take place several days later.