Steep Reduction in State Revenues Projected Through Mid-2023

Steep Reduction in State Revenues Projected Through Mid-2023

A recent unofficial revenue forecast shows that the state could see a $7 billion reduction in revenue through 2023. While the Office of Financial Management (OFM) has already warned state agencies about potential rate cuts, this prediction only makes matters worse. Next week OFM plans to send a letter to state agencies calling for a level of cuts they should prepare to implement; that level has not yet been determined.

LeadingAge Washington is very concerned we may face Medicaid rate reductions.  Or, face an even greater likelihood that Medicaid funding will not be increased from July 2021 levels.  This jeopardizes needed assisted living rate relief the continuation of an inflation factor adjustment and subsequent annual rebasing to skilled nursing facility rates in July 2021.  With decades of underfunding, Medicaid contracted providers need rate increases and many will simply not survive in the absence of funding relief, let alone any actual rate cut. All members should start discussing these concerns with their Legislators now and in the coming months.  Tell them you did not see any COVID funding relief under HB 2965, that the added expenses to fight COVID and lost census have drained reserves.  That prior to COVID you were already operating with razor thin margins or in the red.   Now is the time our state needs to ensure access to care for the growing number of elders who will need us.  We need financial relief to keep our doors open and prepare for the next wave of COVID with sufficient and competent staff to care for our most vulnerable and elderly citizens.

LeadingAge will continue to inform members as we hear more about the state’s revenue forecast and the possibility of either rate cuts or delayed funding increases.  We are also expecting the Governor to call the Legislature back into a Special Session to address funding needs of the state and, in all likelihood, some policy bills as well. You can read more about the unofficial revenue forecast in this article




Alyssa Odegaard- Vice President, Public Policy 

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