Department of Health Services Secretary Karen Timberlake says there are several pieces of federal legislation pending that could alleviate the potential $150 million GPR shortfall for the BadgerCare Plus and Childless Adults Core programs. But she said they are not counting on the federal government to bail the programs out.

"We can't sit back and wait," she told the Joint Finance Committee.

Timberlake is before the JFC to detail the agency's plan to cut more than $600 million in spending over this biennium. See details of the plan here.

See Timberlake's prepared remarks here.

The cut plan was devised before news of the shortfall in the state health coverage programs, which are experiencing higher than expected enrollment due to the downturn in the economy. Timberlake said many other states are facing the same difficulties, and that's why Congress may get involved.

Timberlake said the working groups that worked on the plan to cut the agency budget will be reconvened to come up with a plan to balance the budget in case the federal legislation fails.

"There are additional savings that can be achieved," she said.

Enrollment in BadgerCare Plus has averaged 687,000 individuals per month this fiscal year, above estimates included in the budget that assumed enrollment averages of 638,000 in 2009-10 and 648,000 in 2010-11. As of Nov. 30, about 700,000 individuals were enrolled in BadgerCare Plus, according to an LFB analysis.

GPR cost overruns from the higher than expected enrollment could range from $100 million to $125 million, according to the LFB.

Enrollment in the Childless Adults Core Plan was closed on Oct. 9 due to demand. The program was budgeted for 24,900 enrollees in FY 2010 and 39,500 in FY 2011. As of Nov. 30, 55,000 individuals were enrolled in the program, and a cost overrun for the biennium is estimated at $20 million to $25 million.

-- By Greg Bump

Department of Administration Deputy Secretary Dan Schooff and Republicans on the Joint Finance Committee today tangled over the impact of stimulus funds, with Republicans saying reports on jobs created by the federal American Recovery and Reinvestment Act are overblown.

Rep. Phil Montgomery, R-Ashwaubenon, disputed Schooff's accounting of how many of the 8,284 jobs reportedly created by the stimulus are private jobs. Schooff estimated that roughly half of those jobs were private sector in the energy and road construction fields, but he didn't have the exact breakdown with him today.

"I thought since you were coming to testify on this you would have brought those," said Montgomery, who said about 6,000 of the jobs created are in the public sector.

Rep. Robin Vos, R-Caledonia, said the federal government is "spending more money on ACORN" than on job creation.

Schooff said the next quarterly report on the state stimulus spending, which comes out in January, will have updated data.

Republicans also attacked the DOA and Office of Recovery and Reinvestment for inaccuracies in the reporting of job creation due to stimulus funds. But Schooff said those errors occurred on the federal level, and have been corrected by the feds.

Rep. Pedro Colon, D-Milwaukee, said from a Milwaukee perspective the stimulus has been successful.

"We've done very well," he said.

Sen. Alberta Darling, R-River Hills, said she would like more transparency and detailed information so she could tell her constituents what exactly the stimulus has done.

"What's been spent, how it's being spent. What difference is it making in the state of Wisconsin," Darling said.

"That seems very reasonable," Schooff said.

Executives from the state construction industry told JFC members today that the federal recovery act will save or create 54,000 jobs.

"It's nice to end a tough year with some hopeful news about jobs and economic recovery," said Madison Dem Rep. Mark Pocan, co-chair of the Joint Finance Committee, in a press release. "The work the Wisconsin legislature has done this year on jobs is accomplishing its goals is saving and creating jobs."

-- By Greg Bump

With plans already in place to cut more than $600 million in all funds from the state's health care programs, the state is facing potential cost overruns for the bienniums of up to $150 million in GPR for the BadgerCare Plus and Childless Adults Core Plan, according to an analysis by the Legislative Fiscal Bureau.

But the memo also notes pending federal legislation could result in additional federal matching dollars for medical assistance program from stimulus funds.

Enrollment in BadgerCare Plus has averaged 687,000 individuals per month this fiscal year, above estimates included in the budget that assumed enrollment averages of 638,000 in 2009-10 and 648,000 in 2010-11. As of Nov. 30, about 700,000 individuals were enrolled in BadgerCare Plus.

GPR cost overruns from the higher than expected enrollment could range from $100 million to $125 million, according to the LFB.

Enrollment in the Childless Adults Core Plan was closed on Oct. 9 due to demand. The program was budgeted for 24,900 enrollees in FY 2010 and 39,500 in FY 2011. As of Nov. 30, 55,000 individuals were enrolled in the program, and a cost overrun for the biennium is estimated at $20 million to $25 million.

The analysis notes that proposals in Congress could help mitigate those cost overruns. The federal health care reform bill passed by the House would provide $317 million in additional funds in FY 2011. The provision is not included in the bill currently being considered by the Senate, but the Senate has a separate bill that would provide a similar increase to the House proposal. But the LFB notes that whether either proposal "will become law cannot be said at this time."

Department of Health Services Secretary Karen Timberlake on Thursday will present to the Joint Finance Committee a 66-point plan to cut $608 million from the agency during the biennium as mandated in the biennial budget.

The plan includes delaying payments until 2011 and other one-time savings measures. Cuts to pharmacy costs, including saving $71.3 million by purchasing generic drugs, will provide $199.3 million in savings, according to the DHS plan. In addition, the plan proposes savings of $122.9 million through rate reductions to managed care programs.

See the LFB memo here.

The JFC will also be briefed Thursday on state use of federal funds made available through the American Recovery and Reinvestment Act.

Testifying before the committee will be Department of Administration Deputy Secretary Dan Schooff, Associated General Contractors Executive Vice President Robert Barker and Wisconsin Transportation Builders Association Executive Director Patrick Goss.

The Transportation Builders reported last month that the 2009-11 state budget for transportation infrastructure and remaining federal stimulus projects will support more than 28,500 jobs in the state over the next year.

The Thursday JFC meeting will also include a handful of 13.10 requests. See LFB papers on the requests here.

-- By Greg Bump